NSE: SEDEMAC · BSE: 544723 (one source) · Engine and motor control electronics for two-wheelers and generators, Pune · Listed 11 Mar 2026
₹3,469Last close found, 1 Oct 2026 (one summary)
~₹15,300 crMarket cap, derived on 4.42 cr shares
₹1,413 / 3,494+52-week low / high. A high of ₹3,596 was reported on 29 Sep.
4.42 crShares outstanding, derived
No price after 1 Oct was found. The IPO was priced at ₹1,352, so the stock is up about 157%. The company was valued at about ₹5,900 cr at the IPO. [Fact]
Company overview
Origin
Spun out of IIT Bombay, incubated in 2007. Founder Prof. Shashikanth Suryanarayanan.
Promoters
Suryanarayanan, Amit Arun Dixit, Manish Sharma and Anaykumar Joshi. About 26.2% together. Venture investors held most of the rest before the IPO.
Products
Engine control units, starter-generator controllers, motor controllers for electric two-wheelers, and generator-set controllers
Plants
Three in Pune plus a planned plant at Shoolagiri, Tamil Nadu
Employees
About 1,142 at the draft prospectus stage
Index membership
Not Available — not found
SEDEMAC designs the control electronics and software that run engines and motors, and makes them in Pune. About 91% of Q1 FY27 revenue came from mobility, mainly two- and three-wheelers. TVS Motor alone was about 75 to 80% of revenue. FY26 revenue rose 61% to ₹1,058 cr and profit more than doubled. The IPO was entirely a sale by existing holders, so the company raised nothing.
Key figures
₹1,058 crFY26 revenue (+61%)
₹103.6 crFY26 PAT (+120%)
~21%FY26 EBITDA margin, incl. other income
~27%FY26 RoE (26.9 to 28%)
₹310 crQ1 FY27 revenue (+42.5%)
₹59.9 crQ1 FY27 EBITDA, margin 19.35%
₹33.3 crQ1 FY27 PAT (+95%)
~126xTrailing P/E, derived at ₹3,469
Quick verdict
BusinessMedium
ManagementMedium
FinancialMedium to strong
ValuationExpensive
OverallNeutral, cautious
Data freshness. Prepared 14 Oct 2026. Latest results are Q1 FY27, reported 28 Jul 2026. Q2 unit volumes are out and Q2 results are expected on 28 Oct 2026. NSE and BSE filings, the prospectus and transcripts could not be opened, and Quartr and Financial Modeling Prep need paid plans. Figures come from aggregators and may mix consolidated and standalone bases. Gaps are labelled and listed in Tab 14.
Analyst Notes
First-person view, dated 14 Oct 2026, built on the data tabs and their gaps.
What happened. A control-electronics designer from IIT Bombay grew revenue 61% in FY26 to ₹1,058 cr and profit 120% to ₹104 cr. It listed in March at ₹1,535 and has since risen to about ₹3,469. The market cap of about ₹15,300 cr is roughly 2.6 times the IPO valuation. HSBC initiated at Buy with a ₹3,700 target on 31 July, when the stock was ₹2,645. By 1 October it was ₹3,469, about 6% short of that target.
Why growth is strong. The core is an integrated starter-generator controller that lets two-wheelers stop and restart the engine to save fuel. Combined units passed one million in 23 months. Quarterly units rose 37.5% in the September quarter to 1.45 million, and trailing twelve-month units are up 44%. Units were up 31% from the June quarter. If revenue followed units, September revenue would be near ₹400 cr, but price and mix are not known. Results are due 28 October. [Est.]
The concentration is extreme. TVS Motor was about 80% of FY25 revenue and about 75 to 77% in FY26. The top three customers were 91% of nine-month FY26 revenue, and the top ten about 99%. ICRA flags the same dependence on a single customer and a single product. Management says new motorcycle platforms from three top-ten OEMs will broaden the base, with launches in Q1 FY27, Q4 FY27 and later. Until those show up in revenue, a TVS volume or pricing change moves the whole company.
Margins are good but exposed. About 74% of material cost is semiconductors, with printed circuit boards and rare-earth magnets also imported, notably from China. EBITDA margin was 21% in FY26 and slipped to 19.1 to 19.4% in June on chip tightness and commodity inflation. Reported EBITDA includes other income, so margins on operations alone are lower. Management expects margins to hold or improve, with no numbers.
Supply overhang came through. The six-month lock-in on pre-IPO holders ended around 9 to 10 September, freeing about 38% of equity by one count. On 24 September five holders sold about 11% at ₹3,010, roughly ₹1,469 cr. Buyers included Singapore's sovereign fund and several domestic mutual funds, and the stock closed up about 10%. Promoters are locked in until about September 2027. That absorption is a positive sign, though more selling by venture investors remains possible. [Fact]
What the price implies. At ₹3,469 the stock trades near 126 times trailing earnings, 34 times book and about 65 times EBITDA. HSBC's forecast of 49% annual profit growth to FY29 implies about 45 times FY29 earnings. The price needs a long run of growth well above the industry from a very concentrated customer base. [Est.]
My view. The operating story is excellent: 27% RoE, a 19 to 21% margin, upgraded to A by India Ratings (stable) and ICRA (positive outlook), and growing from a small base. The valuation already assumes much of that, and the customer concentration is the biggest unknown. I would want the Q2 results, the FY26 annual report note on customers and evidence that non-TVS revenue is rising before treating this as more than a high-multiple growth holding. [Analyst View]
Limits of this report. No primary filings, prospectus or transcripts could be read. Figures come from IPO sites, aggregators and news. Consolidated and standalone numbers may be mixed.
Business Deep-Dive
Sourcing note. The prospectus, annual report and transcripts were not opened. Capacity numbers, patent counts, R&D spend, industry share data and certifications were Not Available — not found. [Fact]
History and ownership
Item
Finding
Origins
Prof. Suryanarayanan joined IIT Bombay in 2004. His students built a two-wheeler fuel-injection controller for TVS Motor. The company was incubated at IIT Bombay in 2007.
Early backers
Nexus Venture Partners took about 26% for about ₹2 cr (one press account). Iron Pillar also invested. Dates and sizes not found.
Strategy
Avoid head-on competition with Bosch and Astemo. Use algorithms that remove sensors, such as a 2013 ignition-timing method TVS accepted.
Pre-IPO holders
A91 Emerging Fund II held about 18.2%. Suryanarayanan held about 16.2%. 360 ONE entities held about 8.7%. Xponentia and HDFC Life were smaller sellers.
IPO, Mar 2026
Entirely an offer for sale of 80.4 lakh shares at ₹1,352, worth about ₹1,087 cr. Subscribed 2.68 times, with retail only 0.2 times. Anchors put in ₹325.9 cr. The company received nothing.
Products
Starter-generator (ISG) controllers
Flagship product for two- and three-wheelers, enabling idle stop-start.
ISG with fuel-injection combined: sales began Oct 2024 and passed 1 million units in Sep 2026.
ICRA flags "sizeable operational dependence over a single product".
Claimed share of about 35% of the ISG ECU market (unverified).
Fuel-injection ECUs and motor controllers
Electronic control units for engines.
Motor controllers for electric two-wheelers began ramping in Q3 FY26.
Share of electric vehicle revenue: not found.
Generator-set controllers
The industrial and power solutions line.
Claimed share of about 75 to 77% of Indian genset controllers (unverified).
Exports, mostly gensets to the US, were about US$10 mn in FY26.
How it earns
Design-led and IP-led. It designs the hardware and algorithms and makes the controllers itself.
Semiconductors are about 74% of material cost.
A royalty or licence revenue line was not found.
Facilities and capex
Site
Status
MF1, Chakan, Pune
Mother plant, about 40,000 sq ft
MF2, Wadgaon Budruk, Pune
Operating
MF3, Khed, Pune
About 120,000 sq ft. Limited commercial production began 25 Sep 2026, with more lines to be phased in.
Shoolagiri, Tamil Nadu
13 acres bought in the SIPCOT area. Management says it enables up to three times the ECU output.
Cumulative plant capex was about ₹227 cr to March 2025. ICRA raised rated bank limits from ₹113.5 cr to ₹214.95 cr, with term loans up from ₹49.5 cr to ₹111 cr, which points to debt-funded capex. Installed capacity and utilisation: not found. A Nov 2025 report mentions a ₹100 cr Karnataka facility and whether this became Shoolagiri is not found. ISO or IATF certifications: not found.
Moat
The moat is algorithm and calibration know-how, the OEM validation cycle and a long relationship with TVS. It is narrow because one customer and one product dominate. [Analyst View]
Segment Analysis
Coverage. Two segments are reported: Mobility and Industrial (power solutions). Segment profit and the full FY23 to FY25 split were Not Available — not found. The FY26 split is read off an investor presentation chart and is provisional. [Fact]
Segment (₹ crore)
Q1 FY26
Q1 FY27
Growth
Share Q1 FY27
Mobility
183.3
281.0
+53%
91%
Industrial and power
34.1
28.7
−16%
9%
Total
217.4
309.8
+42.5%
100%
FY26 was about ₹912 cr mobility and ₹146 cr industrial, an 86 to 14 split, and FY25 was about 85 to 86% mobility. A business summary describing mobility as 85% of Q1 FY27 conflicts with the reported figures and is not used.
Quarterly revenue (₹ crore)
Only four quarters were disclosed in the sources. Q4 FY25 is derived from the reported 60% growth. Q2 and Q3 of FY26 were not found, though nine-month FY26 revenue was ₹770.7 cr.
Volumes
Period
Control-intensive ECU units
Growth
FY25
24.39 lakh
NA
FY26
39.01 lakh
+60%
Q1 FY27
11.08 lakh
+37.1%
Q2 FY27
14.53 lakh
+37.5%
Trailing twelve months
45.97 lakh
+44.2%
Revenue growth of 42.5% against unit growth of 37.1% in Q1 suggests supportive price or mix. That is my inference.
What is moving [Analyst View]
Mobility is the engine
ISG launches on variants of three top-ten motorcycle models, two in Q1 FY27 and one in Q4 FY27.
Electric two-wheeler motor controllers ramping since Q3 FY26.
Export three-wheeler ISG production started in Q4 FY26.
Industrial is shrinking
Revenue fell 16% in Q1 FY27.
Exports are mostly gensets and depend on US demand, including hurricane seasons.
The El Nino weather pattern was flagged as a risk for US home-standby generators.
Financials: Profit & Loss
Data basis. FY23 to FY25 are restated figures from IPO sites and StockAnalysis. FY26 comes from the investor presentation, ScanX and Inc42. One source calls the FY26 audited results standalone, so I cannot confirm every year is consolidated. EBITDA includes other income. Gross profit and exceptional items were not found. [Fact]
Annual (₹ crore)
Metric
FY23
FY24
FY25
FY26
Revenue from operations
423.0
530.7
658.4
1,058.4
Growth
NA
+25%
+24%
+61%
Other income
6.8
5.3
4.2
5.3
EBITDA (incl. other income)
54.2
83.1
125.1
~222
EBITDA margin on revenue [Est.]
12.8%
15.7%
19.0%
21.0%
Depreciation
26.3
31.7
45.3
63.5
Finance cost
~20.0
~42.6
12.0
8.5
PBT
8.0
8.8
67.7
150.2
Tax
−0.6
2.9
20.7
~46.6
PAT
8.6
5.9
47.1
103.6
Basic EPS (₹)
NA
NA
10.93
23.91
The FY24 profit dip is attributed to a one-time interest cost on compulsory convertible preference shares. Finance cost and tax for FY23, FY24 and FY26 are derived. FY26 tax implies a 31% rate, well above recent quarters, and is unexplained. Other sources show different FY23 and FY24 profits, such as ₹11.1 cr and ₹27.8 cr, and I used the restated figures. FY25 PAT of ₹47 cr rose about eightfold from FY24.
Quarters disclosed (₹ crore)
Quarter
Revenue
YoY
EBITDA
Margin
PAT
Q4 FY25 (Mar-25)
~180
NA
NA
16.1%
8.6
Q1 FY26 (Jun-25)
217.4
NA
45.7
~20 to 21%
17.1
Q4 FY26 (Mar-26)
287.7
+60%
~61
21.3%
32.1
Q1 FY27 (Jun-26)
309.8
+42.5%
59.9
19.35%
33.3
Nine-month FY26 revenue was ₹770.7 cr and PAT ₹71.5 cr, so Q4 PAT of ₹32.1 cr brings FY26 to ₹103.6 cr. Q2 and Q3 FY26 were not found directly. Q1 FY27 margin is 19.10% excluding other income, and fell 193 basis points from the previous quarter on chip tightness and commodity inflation. The Q1 FY27 tax rate was 19.4% against 23.5% in Q4, and PAT includes a ₹2.98 cr reversal of excess tax provisions. Without it PAT is about ₹30.3 cr, up about 77% year on year and down about 6% on the quarter. [Est.]
Margins, growth and quality
EBITDA margin rose from 12.8% in FY23 to 21% in FY26. Operating leverage and mix did the work. [Est.]
FY26 growth is organic, with unit volume up 60%. Price versus mix is not disclosed. [Fact]
Finance cost fell from about ₹43 cr to ₹8.5 cr after the preference shares were converted, which flattered FY25 and FY26 profit growth. [Est.]
Earnings quality. Reasonable but not clean. FY26 operating cash flow was about 1.2 times PAT, while working capital absorbed about ₹72 cr. Free cash flow was about zero in FY26 even as profit doubled. [Est.]
Financials: Balance Sheet, Cash Flow & Ratios
Coverage gap. Fixed assets, goodwill and payables were Not Available — not found. Working-capital lines come from StockAnalysis and Sharpely, not from the filing. [Fact]
Balance sheet (₹ crore)
Item
Mar-23
Mar-24
Mar-25
Dec-25
Mar-26
Net worth
115.2
124.4
303.9
411.2
449.2
Total borrowings
109.6
150.6
49.6
46.9
LT 45.9
Total assets
NA
NA
491.2
NA
813.7
Inventory
NA
NA
~135
NA
~188
Receivables
NA
NA
~44
NA
~134
Cash
NA
NA
~2.5
NA
~64
Net worth jumped from ₹124 cr to ₹304 cr in FY25, consistent with conversion of the preference shares, which I infer and could not date. Short-term debt at March 2026 is not found. Receivables tripled in FY26 while revenue grew 61%.
Cash flow (₹ crore)
Item
FY25
FY26
Operating cash flow
90.9 (79.3 in another source)
128.0 (119.7)
Capex, plant and intangibles
56.9 + 28.7
138.6 + 36.9
Investing cash flow
−104.8
−148.3
Free cash flow
+34.0
−10.5
CFO to PAT [Est.]
1.9x
1.2x
FY26 working capital absorbed ₹71.5 cr: receivables −₹90.2 cr, inventory −₹55.4 cr, payables +₹89.5 cr. FY23 and FY24 cash flow not found.
Ratios
Ratio
Value
Note
RoE
FY25 22%, FY26 27 to 28%
Value Research, Screener
RoCE
FY26 35 to 37%
HSBC quotes 24%, definitions differ. A ScanX headline cites 42% for Q1 FY27, unverified.
Debt to equity [Est.]
FY25 0.16, FY26 about 0.10
Sources quoting 1.16 to 1.37 do not reconcile with the borrowing figures
Interest cover [Est.]
FY25 6.6x, FY26 18.6x
FY23 to FY24 about 1.2 to 1.4x
Debtor days
29.7 in FY25 to 46.1 in FY26
Screener
Payable days, cash conversion cycle
Not Available
Equity, IPO and lock-ins
Item
Detail
Pre-issue shares
4,37,37,000, promoters 26.43%. Now about 4.42 cr. The extra four lakh shares are probably option exercises under the 2014 plan, an inference.
IPO
Offer for sale only: 80,43,300 shares. Promoters sold 45,000 and 67,500 (promoter group). Investors sold 79.3 lakh.
Pre-IPO investors' lock-in
Expired about 9 to 10 Sep 2026. About 38% of equity unlocked by one count. HSBC puts pre-IPO investor holdings near 55%, so the sources conflict.
Promoter lock-in
Minimum 20% locked to about Sep 2027
Block deal, 24 Sep 2026
48.8 lakh shares (11.05%) at ₹3,010, about ₹1,469 cr. A91 sold 16.1 lakh, Xponentia 16.85 lakh, HDFC Life 4.04 lakh, plus NRJN Family Trust and Mace. Buyers included Singapore's sovereign fund, SBI, Invesco, Franklin, Axis, ICICI Prudential and T. Rowe Price.
Credit rating
Upgraded twice in 2026. India Ratings raised bank facilities to IND A (Stable) from A- on 17 Aug 2026. ICRA raised them to [ICRA]A (Positive) from A- on 15 Sep 2026 and lifted limits to ₹214.95 cr. Lenders are not named in sources. [Fact]
Key balance-sheet risks
Receivables and inventory are growing fast, and a few customers hold most receivables. About 91% of receivables sit with three clients. [Fact]
Free cash flow turned slightly negative in FY26 while capex expands for the Shoolagiri plant. [Fact]
Management, Promoters & Governance
Sourcing note. The prospectus and annual report were not read. Board independence ratios, remuneration, related-party amounts and subsidiaries were Not Available — not found. [Fact]
Promoters and management
Person
Role
Note
Shashikanth Suryanarayanan
Founder and promoter
Managing director in 2025 per one tracker. Holds about 16%. Did not sell in the IPO.
Amit Arun Dixit
Joint Managing Director
IIT Bombay M.Tech and PhD. An NSE correction in March 2026 clarified that he is Joint MD, not MD.
Manish Sharma
Whole-time director and COO
Sold 45,000 shares in the IPO.
Anaykumar Joshi
Promoter
Role not found
Rajesh Madhukar Sheth
CFO
Prasad Rajendra Chavan
Company secretary
Who chairs the board is unclear. Trackers list Poyni Bhatt as chairperson, one profile calls the founder chairman, and Inc42 lists Bhatt as an independent director. Other non-executives are N S Parthasarathy (independent) and Udo Edgar Wolz. Verify in the annual report. [Fact]
Shareholding
Holder
Pre-IPO
Post-IPO
Mar 2026
Jun 2026
Promoters
26.43%
26.18%
26.24%
~26.2%
FII
NA
NA
2.52%
4.27%
DII
NA
NA
43.9%
39.8%
Public
NA
NA
NA
9.3% to 29.7%
The public share conflicts across aggregators and the categories do not sum to 100%. One source shows a negative FII figure, which I discarded. Pledge: not found. A promoter declaration of no encumbrance for FY26 exists. The September 2026 shareholding pattern would show the block buyers. Kalyani, Tata and Sundaram holdings from my brief were not found.
ESOPs, auditors and related parties
ESOP 2014: exchanges approved listing 1,47,000 shares on 9 Jun 2026. A ratification resolution for ESOP 2025 went to a postal ballot dated 18 Jul 2026. The proxy advisor IiAS raised concerns, and the company replied on 7 Aug. The concerns are not found. [Fact]
Statutory auditor B S R & Co. LLP issued an unmodified opinion on FY26 results. Cost auditor A. J. Paranjape & Co. Internal auditor Manubhai & Shah LLP. [Fact]
The related-party policy was updated on 3 Nov 2025. Amounts and subsidiaries: not found. [Fact]
Litigation and regulatory
Matter
Detail
Income tax
Penalty of about ₹74.9 lakh from the faceless assessment centre, disclosed 25 Mar 2026. The company will appeal.
GST notices
Tamil Nadu demand of ₹2.35 cr for FY23 and FY24. The company expects no material impact.
GST search
Maharashtra inspection at the registered office and plants began 8 Sep 2026 and was closed by 12 Sep. The company says operations and financials were unaffected.
Contingent liabilities and prospectus litigation table
Not Available
Governance view[Analyst View] Nothing alarming surfaced. Items to check: the proxy advisor's ESOP concerns, the chairperson question, related-party amounts and key-person risk, since the founder-led technical team holds the intellectual property.
Supply Chain
Thin disclosure. Pass-through terms with OEMs, named suppliers and contract tenors were Not Available — not found. [Fact]
Value chain
Where pricing power sits. Buyers hold most of it: one OEM is about 75 to 80% of revenue. SEDEMAC holds some through design lock-in, since a controller is validated for a specific engine. Chip suppliers hold the cost side. [Analyst View]
↑ Upstream: what SEDEMAC depends on
Item
Finding
Semiconductors
About 74% of material cost. Grade and availability constraints cause gross margin swings.
Printed circuit boards
Imported, notably from China
Rare-earth magnets
Flagged as a dependency for motor controllers
Supplier concentration
Top ten suppliers were 64% of procurement in FY25 and nine-month FY26
Recent pressure
Tightening chip supply and commodity inflation cut Q1 FY27 margin by about 1.9 points from the prior quarter
Pass-through
Not found
↓ Downstream: who depends on SEDEMAC
Item
Finding
Largest customer
TVS Motor, about 80% of FY25 and 75 to 77% of FY26 revenue (ICRA shows 77% and 80%)
Concentration
Top three customers 88% in FY25 and 91% in nine-month FY26. Top ten 98 to 99%. 91% of receivables sit with three clients.
Named others
Bajaj Auto, Hero MotoCorp, Mahindra, Tata Motors, Ashok Leyland and Kirloskar Oil Engines appear in IPO blogs with no percentages. Ather, Ola and Cummins: not found.
Design wins
ISG launches on three top-ten motorcycle models and ECU deals with three top-ten OEMs, per management
End uses
Two- and three-wheelers, electric two-wheelers, generators, with power tools and commercial vehicles as stated growth areas
A single customer and a single product dominate. If TVS shifts volume or squeezes price, there is no offsetting customer yet. Management expects concentration to fall as new customers come on, but the dates are Q1 and Q4 FY27 at the earliest. [Analyst View]
Competitive Position
Incomplete peer data. The industry report in the prospectus, peer margins, peer returns and market shares were Not Available — not found. The peer search returned larger auto-component names, not direct control-electronics rivals. [Fact]
Valuation versus listed auto-component names
Company
Market cap (₹ cr)
P/E
SEDEMAC (derived, ₹3,469)
~15,300
~126
Uno Minda (6 Aug)
72,386
60.2
Sona BLW Precision Forgings (6 Aug)
50,832
73.0
Endurance Technologies (6 Aug)
41,210
43.3
Value Research's own peer set is electronics and industrial names such as PG Electroplast (79.6x), Avalon Tech (106x) and Kaynes. It shows SEDEMAC at RoE 23% and RoCE 25% on a trailing basis in July. SEDEMAC trades at roughly twice the earnings multiple of larger auto-component names, growing faster but with far higher concentration. [Analyst View]
Competitors
Competitor
Source and relevance
Bosch, Astemo (Hitachi Astemo)
The incumbents SEDEMAC chose not to fight head-on. Bosch and Schaeffler India appear as listed benchmarks for profitability.
Continental, Denso, Delphi/Aptiv, Minda, Varroc, Sona Comstar
No source placed them against SEDEMAC
Industry and tailwinds
Fuel-injection adoption and idle stop-start systems in Indian two-wheelers underpin the ISG business. The prospectus's regulatory commentary was not read. [Fact]
Electric two-wheeler motor controllers add a second leg. [Fact]
Market size, share and barriers from the industry report: Not Available. Barriers are likely to be algorithm and calibration know-how, OEM validation cycles and long relationships. That is inference, not sourced. [Analyst View]
Five forces [Analyst View]
Force
Strength
Reason
Rivalry
Medium
Global suppliers are large but have under-served Indian two-wheelers.
Buyer power
High
One OEM is about 75 to 80% of revenue.
Supplier power
High
Chips are about 74% of material cost.
New entrants
Medium
Validation cycles and software know-how protect it.
Substitutes
Low
OEMs can bring design in-house, but have not so far.
Moat durability. Moderate. Strong technical credentials, but the relationship with one OEM is the real moat and the main risk. [Analyst View]
Risks & Red Flags
Risk
Category
Severity
Explanation
Mitigant
Customer concentration
Business
High
TVS Motor is about 75 to 80% of revenue. Top three are 91%. 91% of receivables sit with three clients.
Launches planned on three top-ten motorcycle models.
Single-product dependence
Business
High
ICRA flags heavy reliance on the ISG controller.
Motor controllers and export 3W ISG ramping.
Valuation
Financial
High
About 126x trailing earnings, 34x book, 65x EBITDA at ₹3,469.
HSBC target ₹3,700. Profit growth near 49% a year forecast.
Chip and commodity costs
Business
Medium
Semiconductors about 74% of material cost. Q1 margin fell about 1.9 points from the prior quarter.
Management expects margins to hold or improve.
Import dependence, China
Macro
Medium
Chips, boards and magnets are imported, notably from China.
Not found
Further selling by holders
Market
Medium
Pre-IPO holders were unlocked in September. 38% by one count. Promoter lock-in ends about Sep 2027.
The 24 Sep block was absorbed by institutions.
Working capital and cash
Financial
Medium
FY26 free cash flow −₹10.5 cr. Receivables tripled and inventory rose 39%.
Operating cash flow positive. Net worth ₹449 cr.
Execution on new plants
Execution
Medium
Pune MF3 started limited production in Sep 2026. Shoolagiri still to come. Debt-funded capex.
ICRA and India Ratings upgrades in Aug and Sep 2026.
Industrial segment decline
Business
Medium
Q1 FY27 industrial revenue fell 16%. Exports depend on US generator demand.
Only 9% of revenue.
Tax and GST items
Regulatory
Low
₹74.9 lakh income tax penalty, ₹2.35 cr GST demand, a GST search closed in Sep 2026.
Small amounts. Company expects no material impact.
Key-person and IP
Business
Medium
Founder-led technical team. Board chair unclear.
ESOP plans to retain staff.
Quality of reported EBITDA
Data
Medium
Reported EBITDA includes other income. Q1 FY27 PAT includes a ₹2.98 cr tax reversal.
Operating margin 19.1% still strong.
Data quality
Data
Medium
Consolidated versus standalone basis unclear. Price and shareholding data conflict.
Verification list in Tab 14.
Currency and rates. Exports are small, about US$10 mn. Chip prices are priced in dollars, so rupee weakness raises costs. Sensitivity is Not Available. [Analyst View]
Concall Highlights & Guidance
Transcript gap. A Q4 FY26 call was held on 18 May 2026 and a transcript was filed on 22 May, but only the cover letter surfaced. Whether a Q1 FY27 transcript exists is disputed, since one source says none was published. Analyst Q&A and verbatim quotes are Not Available. The notes below come from presentations and press summaries. [Fact]
Period
Headline
Commentary
Q4 FY26 (call 18 May 2026)
Revenue ₹287.7 cr (+60%), EBITDA about ₹61 cr (21.3%), PAT ₹32.1 cr. FY26 revenue ₹1,058 cr, PAT ₹103.6 cr, RoCE about 40% per the company.
FY27 growth from higher ISG penetration on more models, electric two-wheeler controllers and capacity expansion. Mild margin pressure from inflation. ECU deals with three top-ten motorcycle OEMs. Export push in two-wheelers, with Japan and possibly China named.
Chip supply tight and commodities inflating. Margins "expected to hold or improve" through FY27. ISG launches on three top-ten models, two in Q1 FY27 and one in Q4 FY27. El Nino flagged as a risk to two-wheeler demand and US standby generators, with no adverse effect so far.
Q2 FY27 operating data (Oct 2026)
1.45 million control-intensive ECUs (+37.5%)
Results expected 28 Oct 2026.
Guidance
All FY27 guidance is qualitative. There are no revenue, margin or profit numbers, and an independent review rates guidance quality "Below Average". A guidance-versus-outcome check is therefore Not Available. Delivery against the qualitative statements so far: strong, with FY26 revenue up 61% and margin about 21%, and the June margin dip consistent with the "mild pressure" language. [Fact]
Tone [Analyst View]
Confident and operational. Management speaks in terms of units, launches and capacity, not targets.
Candid on chip and commodity costs.
No quantified customer-diversification plan, which is the item investors most need.
Questions the Q&A should answer
What share of revenue will TVS be in FY27 and FY28?
How much of the margin fall is chip cost, and how much can be passed on?
What is installed capacity and utilisation, and what does Shoolagiri add?
Growth, Outlook & Valuation
Visibility and expansion
3Top-ten motorcycle OEMs with ISG launches
~₹227 crCumulative plant capex to Mar 2025
13 acresShoolagiri land, up to 3x output
₹214.95 crRated bank limits (ICRA)
Order book and book-to-bill are Not Available. No numeric order book was found. Visibility is qualitative: ISG platform launches and electric two-wheeler ramp-up. No numeric FY27 or FY28 capex guidance was given. [Fact]
Catalysts [Analyst View]
Next 12 months
Q2 FY27 results on 28 Oct 2026.
Pune MF3 ramp and Shoolagiri progress.
New-OEM ISG volumes in Q4 FY27.
Further block sales by venture investors.
3 to 5 years
Export two-wheeler programmes in Japan and elsewhere.
Electric controller share.
Power tools and commercial vehicle electronics.
Customer mix moving away from one OEM.
Analyst views
Source
View
Target
HSBC (31 Jul 2026)
Buy. FY26 to FY29 CAGR: revenue 32%, EBITDA 35%, PAT 49%. Flagged profit-taking and lock-up risk.
₹3,700
Investing.com consensus
Two analysts
₹3,112
MarketScreener consensus
Three analysts, Buy
₹3,308
SBI Securities (at IPO)
Subscribe for long term, 62.6x FY26 annualised
NA
Swastika (at IPO)
Avoid, about 127x trailing
NA
The price of ₹3,469 is above both consensus averages and below HSBC's target. Broker names behind the consensus were not found.
Valuation
Metric
Value
Note
Price
₹3,469
1 Oct 2026 close, one summary. ₹3,328 on 24 Sep.
Market cap
~₹15,300 cr
On 4.416 cr shares. IPO valuation about ₹5,900 cr.
52-week range
₹1,413 to 3,494+
One page showed a high of ₹3,596
P/E trailing [Est.]
~126x
TTM EPS about ₹27.4. Sources show 116 to 131x.
P/B [Est.]
~34x
On ₹449 cr net worth
EV/EBITDA [Est.]
~64 to 69x
Net debt near zero
Forward P/E [Est.]
~45x FY29
Using HSBC's 49% profit CAGR
Dividend
None found
+157%Versus the ₹1,352 IPO price
+126%Versus the ₹1,535 listing price
₹3,01024 Sep block price
2.6xMarket cap versus IPO valuation
What the price assumes. Profit compounding near 49% a year for three more years from a customer base that is almost one company. Any customer slip would hit a stock priced for perfection. [Analyst View]
Final Verdict
Business qualityMedium
Management qualityMedium
Financial qualityMedium to strong
ValuationExpensive
Overall viewNeutral, cautious
Opinion. A high-return, fast-growing controls company with two rating upgrades, but one customer and one product carry the story, and the price already reflects years of high growth. I would watch the Q2 results on 28 October and the customer data in the annual report before taking a view. [Analyst View]
Bull case
New-OEM ISG launches and electric controllers cut TVS share and keep growth above 35%.
Margins hold near 20% as scale offsets chip costs.
Exports in two-wheelers open a second growth engine.
Bear case
TVS slows or squeezes price, and growth drops sharply.
Chip shortages hit margins and delivery.
Selling by venture holders and a de-rating compress the multiple.
Base case, 12 to 18 months
Revenue grows 30 to 40% on volumes. Margin stays at 19 to 21%. The stock stays volatile around lock-in and results dates. [Analyst View] This is a judgment, not a forecast. Consensus estimates were not found.
Five things to remember
The IPO was a pure offer for sale, so the company raised no money.
TVS Motor is about 75 to 80% of revenue.
FY26 revenue rose 61% and profit 120%. Q1 FY27 margin fell to 19%.
The stock is about 126 times earnings, up 157% from the IPO price.
Q2 results are due 28 Oct 2026.
Five questions before investing
What share of FY27 revenue will TVS be?
How much of the margin fall can be passed on to customers?
What are installed capacity and utilisation?
Who owns the stock after the September block, and who is left to sell?
What did the proxy advisor object to in the 2025 ESOP plan?
Sources
What could not be accessed. NSE and BSE filing pages, the prospectus, Screener and transcripts could not be read, and Quartr and Financial Modeling Prep need paid plans. Every source was reached through web search summaries, and filing links appear because they surfaced in results. Search was limited to roughly 30 queries per research area. All sources were accessed on 14 Oct 2026.
The BSE code 544723 comes from one source and was not checked.
Customer concentration: TVS Motor is 75.48% in one source, 75% for nine-month FY26 and 80% for FY25 in another, and ICRA shows 77% for FY26 and 80% or 81% for FY25.
Q1 FY27 EBITDA margin is 19.35% (including other income) or 19.10% (excluding). PAT includes a ₹2.98 cr tax reversal. One source says PAT +31%, which I treat as an error against +95%.
The business agent described mobility as 85% of Q1 FY27 revenue. The reported ₹281.0 cr of ₹309.8 cr is 91%, which I used.
Lock-in: about 38% of equity (17 mn shares) unlocked around 10 Sep per one source, and HSBC says pre-IPO investors hold about 55%. Exact dates and quantities differ.
Price: ₹3,469 on 1 Oct is from one search summary. A high of ₹3,596 was reported on 29 Sep against ₹3,366 elsewhere. No price after 1 Oct was found. At ₹3,010 the market cap is about ₹13,300 cr on 4.416 cr shares, not ₹13,100 cr as in an earlier note.
FY26 consolidated versus standalone: one source calls the audited results standalone. FY23 to FY25 are restated IPO tables assumed consolidated.
Not found: capacity and utilisation, pledge data, Kalyani, Tata and Sundaram holdings, peer margins, subsidiaries, related-party amounts, Q2 and Q3 FY26 results, and any price after 1 Oct.
Next filings to read: the FY26 annual report, the prospectus risk factors, the Q4 FY26 transcript, the September shareholding pattern and Q2 FY27 results on 28 Oct 2026.