1. At a Glance
Welcome to the auto-parts drama where foam meets finance and seats meet scrutiny.Bharat Seats Ltd (BSL)– the Maruti Suzuki seat supplier everyone sits on (literally) – has dropped itsQ2FY26 numbers, and the results are a curious mix of expansion, tax tantrums, and corporate soap opera.
The company reportedrevenue of ₹458.6 crorein Q2FY26 (up a solid57.8% YoY) and aPAT of ₹9.90 crore(up39.4% YoY). The stock sits at₹206, with a market cap of₹1,292 croreand aP/E of 34x. Over the last6 months, it has returned105%, and in the pastyear, a jaw-dropping91%– proving that the best car seats might just be in your demat account.
But wait, before we recline too comfortably: the company also disclosed atax demand of ₹22.4 croreand an additionalpenalty of ₹5.24 crore. That’s roughly75% of last year’s profit– so clearly, not all seats are cushioned.
And to keep things spicy, there’s a newsenior management appointment, abonus issue approved in Dec 2024, and apromoter trust reshufflewhereRohit Relan Family Trustgrabbed a16.38%stake. Drama level: daily soap meets auditor’s office.
2. Introduction
Bharat Seats is that friend who quietly makes money while everyone else shows off fancy cars. You may not know them, but you’ve definitely sat on their handiwork—literally every Maruti Suzuki driver owes them a thank you note (or at least a lumbar support adjustment).
Incorporated in1986, BSL is ajoint ventureamongSuzuki Motor Corporation (Japan),Maruti Suzuki India Ltd, andRohit Relan & Associates. The company manufacturesseating systems,carpets,body sealing parts,NVH (Noise, Vibration, and Harshness)components, and even seats forIndian Railways—because why stop at cars when you can cushion entire trains?
The auto industry may be cyclical, but Bharat Seats seems to be on cruise control. OverFY23–FY25, revenue surged from₹1,051 croreto₹1,585 crore, while net profit jumped from₹22 croreto₹38 crore. The margins might be slimmer than a WagonR door panel, but the growth is real and resilient.
Of course, the shadow oftax demands,penalties, andregulatory letterslooms large. When your clients are happy but the Income Tax Department isn’t, it’s like scoring a century only to be bowled out for handling the ball.
Still, in the grand seat-making league of India,BSL is sitting pretty—literally.
3. Business Model – WTF Do They Even Do?
Let’s be real: the auto seating business isn’t sexy. You don’t brag at parties saying, “I make car seats for a living.” But in the supply chain,BSL is a crucial comfort provider.
Here’s the deal:
- Four-Wheeler Seats:Mainly forMaruti Suzuki, where BSL isone of two suppliers. The company remains thesole supplier for certain models, a rare moat in auto ancillaries.
- Two-Wheeler Seats:ForSuzuki Motorcycle India Pvt Ltd, where BSL again enjoys exclusive status.
- Railway Seats:Because nothing says “diversification” like cushioning the Indian Railways’ metallic benches.
- NVH Products and Carpets:For when you want your Alto to sound less like a tin can and more like a whispering cloud.
- Body Sealing Parts:Extrusions and windshield moldings—the unsung heroes that stop rainwater and road noise.
The company hasplants in Haryana (Gurgaon, Manesar, Bhorakalan)andGujarat (Surendranagar, Hansalpur), all strategically located
near Maruti’s facilities. It’s basically the “Swiggy for Seats” — always nearby when MSIL sneezes.
With upcomingKharkhoda (Haryana) supplier park expansion, and₹100 crore capexplanned for FY25, the firm is clearly strapping in for growth.
4. Financials Overview
| Metric | Latest Qtr (Q2FY26) | YoY Qtr (Q2FY25) | Prev Qtr (Q1FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 458.6 | 290.7 | 427.1 | 57.8% | 7.4% |
| EBITDA (₹ Cr)* | 22.65 | 17.66 | 21.71 | 28.2% | 4.3% |
| PAT (₹ Cr) | 9.90 | 7.10 | 9.18 | 39.4% | 7.8% |
| EPS (₹) | 1.58 | 1.13 | 1.46 | 39.8% | 8.2% |
*EBITDA approximated from operating profit.
Commentary:Margins are flatter than a WagonR bonnet, but growth is zooming. WithEBITDA margin near 5%, the company isn’t minting profits, but for a vendor glued to Maruti’s supply chain, that’s expected. The annualized EPS is₹6.32, implying aP/E of ~33x—expensive for a seat, but maybe these are ventilated ones.
5. Valuation Discussion – Fair Value Range
Let’s crunch it like an auditor with a caffeine problem.
(A) P/E Approach:
- EPS (Annualized) = ₹6.32
- Industry P/E = ~32.7x
- Fair Value Range (25x–35x) = ₹158 – ₹221
(B) EV/EBITDA Approach:
- EV = ₹1,419 Cr
- EBITDA (TTM) = ₹91 Cr
- EV/EBITDA = 15.5x (given)If re-rated to 13–17x range → Fair EV = ₹1,183 – ₹1,547 CrSubtract Net Debt (₹132 Cr): Equity Value = ₹1,051 – ₹1,415 CrPer Share Value ≈ ₹168 – ₹226
(C) Simplified DCF (based on 10% FCF margin & 12% discount rate):Projected 3-year CAGR 15% → Intrinsic range ₹175 – ₹230
🎯Fair Value Range: ₹160 – ₹230
Disclaimer:This fair value range is foreducational purposes onlyand not investment advice. (Our lawyers made us write this before their own seats caught fire.)
6. What’s Cooking – News, Triggers, Drama
Oh boy, this company’s announcement page reads like a Bollywood courtroom thriller.
- Nov 5, 2025:Q2FY26 results out. Profit ₹9.9 crore. Revenue ₹458.6 crore. Tax demand of ₹22.43 crore + penalty of ₹5.24 crore. New senior manager appointed—probably someone with nerves of steel.
- Oct 1, 2025:SEBI filing showsRohit Relan Family Trustacquired16.38%shares after a“gift transfer”. Because in corporate India, love languages include
