Automotive Components Maker Remsons Industries Reports 25% Rise in Q2 Net Profit

Remsons Industries has posted a 25 percent increase in its net profit for the September quarter, reaching ₹5 crore, supported by a favorable product mix. The company also announced leadership changes, ongoing capital expenditure plans, and progress on major international and domestic orders.

Automotive components manufacturer Remsons Industries has reported a net profit of ₹5 crore for the September quarter, marking a 25 per cent increase compared to ₹4 crore recorded in the corresponding period of the previous year. According to the company, the bottom-line growth was driven by a better product mix, despite facing a sharp rise in raw material costs.

During the quarter, the company's revenue grew by 17 per cent to ₹135 crore, up from ₹116 crore in the same period last year. However, EBITDA saw an 8 per cent decline, dropping to ₹12 crore from ₹13 crore.

Remsons stated that its growth rate outperformed the broader industry amid a challenging macroeconomic environment marked by raw material inflation and global trade dislocation. The company's strategic shift toward premiumisation—moving away from pure-play cables and gear-shifters into sensors via its Remsons-Uni Autonics partnership and lighting through BEE—has contributed to a higher realization per unit.

The company has secured several multi-year programmes that are expected to reflect in future revenues. These include a ₹300 crore order from Stellantis to supply control cables, a ₹60 crore gear shifter contract, and a 10-year international pedal box programme at its UK subsidiary.

Remsons has outlined capital expenditure plans totaling ₹100 crore, spread over three years. The investment will focus on plant upgrades in India and the UK, with an emphasis on electric vehicle-compatible parts, sensors, and tyre mobility kits. Its client exposure spans passenger vehicles, commercial vehicles, electric vehicles, and two-wheeler segments, including manufacturers such as Stellantis, Tata Motors, Hero, Maruti, and UK luxury and supercar OEMs via BEE Lighting.

Commenting on the results, Krishna Kejriwal, Chairman and Managing Director, stated that the quarter reflects continued momentum in the core business and sustained demand across product portfolios. He added that the company remains on track to achieve its FY30 revenue aspiration of ₹900 to ₹1,000 crore. Kejriwal noted that with most net sales additions concentrated in international markets like the UK, Europe, and North America, the company has benefited from global OEMs adopting a China-plus-one sourcing strategy.

In leadership updates, the company has appointed Rahul Desai as the new Chief Executive Officer and inducted Shivani Kejriwal as an Additional Whole Time Director. Additionally, the Board of Directors has approved plans to exit the joint venture agreement between Remsons and Aircom Remsons Automotive.

"Remsons Industries' Q2 performance highlights the effectiveness of moving toward a value-added product mix, such as sensors and lighting, to protect margins despite input cost pressures. Securing multi-year global orders and executing a clear multi-year capex plan toward EV-compatible parts demonstrates sound long-term strategic positioning. For growing manufacturing businesses, diversifying product lines and aligning with international supply chain shifts like the China-plus-one strategy are proven avenues for sustained scaling." — Dr. Shishir Gupta, Founder & CEO, StartupLanes