Igarashi Motors India Ltd Q2FY26 – The Motor That Couldn’t Quite Zoom (Yet!) But Is Still Revving at ₹499 with a 103x P/E
1. At a Glance
Welcome to Igarashi Motors India Ltd — where the motors spin faster than profits, and the patience of minority shareholders is tested like a long-term endurance test. The Chennai-based precision motor maker has delivered Q2FY26 revenue of ₹219.14 crore and PAT of ₹4.54 crore, marking a YoY decline in profit by 41.7%, despite a mild sales growth of 1.42%. The stock trades at ₹499, giving the company a market cap of ₹1,572 crore, with an eye-watering P/E ratio of 103x — because apparently, hope is a valuation metric now.
Operating margins? A modest 10.71%, down from its heydays of 24% in the mid-2010s. Return on equity? 5.3%, just enough to buy an auto spare part, not the car. Yet, it’s a fascinating business that quietly powers the world’s most sophisticated cars and gadgets — 64% of revenue comes from exports, proving that at least someone outside India appreciates these motors.
But hold your gears — because under that quiet exterior lies a vertically integrated, export-driven machine trying to reinvent itself in the era of EVs and BLDC motors.
2. Introduction – The Japanese-Indian Motor Love Story
Let’s roll back to 1992, when Igarashi Motors began life as a joint venture between Crompton Greaves (India), Igarashi Electric Works (Japan), and International Components Corporation (USA). Over time, the Japanese partner consolidated control, leaving us with a hybrid creature: Japanese engineering finesse built on Indian cost structures and corporate bureaucracy.
From making basic Permanent Magnet DC Motors for seat adjusters, wipers, and windows, Igarashi evolved into designing and manufacturing Actuator Motors for Electronic Throttle Controls (ETCs) — basically, the small yet mighty devices that tell your car’s engine how to breathe.
They now operate across Tier-2, Tier-3, and Tier-4 of the automotive ecosystem, serving global Tier-1 suppliers like Bosch, BorgWarner, and Vitesco — names so serious, even Elon Musk might nod in approval.
Yet, despite supplying to world-class OEMs, the company’s financials resemble a tuk-tuk rather than a Tesla. Revenues grew just 0.93% YoY, profits fell 33% in the trailing twelve months, and the stock has done the financial equivalent of a U-turn over the last year — down 36%.
Still, there’s potential torque hidden here — especially in the new BLDC (Brushless DC) segment, where efficiency, speed, and silence rule. The company has quietly ramped up capacity from 1 million to 2 million units per year.
Will it finally shift gears? Let’s find out.
3. Business Model – WTF Do They Even Do?
Imagine a world where tiny, whirring motors control everything — from your car seat’s backrest angle to your EV’s battery cooling system. That’s Igarashi’s playground.
They specialize in Permanent Magnet DC Motors and sub-assemblies, mainly used in:
Automotive actuators (Throttle, EGR, VTG systems)
Vehicle body applications (like power lift gates and door modules)
Braking systems (EPB, EVP, PLA)
Consumer appliances (through BLDC motors for fans and other gadgets)
In short, they make the things that make other things move.
While 87% of FY23 revenue came from traditional electric micro-motors, the rest 13% came from BLDC motors — a fast-growing segment that’s their passport to future relevance.
Their 9 manufacturing facilities in Chennai’s MEPZ-SEZ and Maraimalai Nagar churn out millions of these precision motors every quarter.
But here’s the funny part — this is a Tier-2 supplier story in an auto world obsessed with OEMs. So when Maruti or Hyundai reports record sales, Igarashi yawns unless Bosch or BorgWarner sends them a bigger purchase order.
The company is trying to de-risk this dependency by diversifying into 2W and 3W EV applications, and even IoT-enabled BLDC PCBs for smart homes. So yes, from throttle actuators to fan regulators — they’ve literally gone from cars to ceiling fans.
4. Financials Overview – The Quarter in Numbers
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue (₹ Cr)
219.14
216.07
204.71
1.42%
7.04%
EBITDA (₹ Cr)
23.47
26.28
19.61
-10.7%
19.6%
PAT (₹ Cr)
4.54
7.79
2.51
-41.7%
80.9%
EPS (₹)
1.44
2.47
0.80
-41.7%
80.0%
Annualised EPS = ₹1.44 × 4 = ₹5.76 Current P/E = ₹499 ÷ ₹5.76 ≈ 86.6x, but Screener says 103x, meaning analysts also gave up trying to rationalize it.
Commentary: If your PAT falls 42% YoY but your stock still trades at 100x earnings, congratulations — you’re in India’s
