1. At a Glance – Spin Cycle On, Patience Required
IFB Industries is that rare Indian company which sells washing machines to your house and precision metal parts to EV makers. Market cap sits at ₹5,475 Cr, stock price at ₹1,351, and promoters firmly clutch 75% — zero pledge, zero drama there.
Q3 FY26 revenue came in at ₹1,375 Cr, up 12% YoY, while PAT stayed flat at ₹25 Cr, proving once again that margins, not sales, are the real villain in consumer durables. Operating margin hovered around 5%, which is decent by Indian appliance standards but nothing to pop champagne over.
Engineering segment whispers sweet nothings about ₹500 Cr order inflows and acquisitions, while home appliances continue the hard grind of discounts, logistics costs, and Indian consumers asking for German quality at roadside prices.
Three-month stock return? –29%.
Six-month return? +3%.
Mood? Confused, just like the stock.
Is IFB silently fixing its margin engine, or is this another “next year pakka” story? Let’s open the drum and check what’s inside.
2. Introduction – A 50-Year Old Brand Still Reinventing Itself
Founded in 1974, IFB started life as Indian Fine Blanks, long before influencers were reviewing washing machines on Instagram. Over five decades later, the company has split its personality neatly into two:
- Home Appliances – emotional, volume-heavy, margin-thin
- Engineering (Fine Blanking & Stamping) – boring, precise, margin-friendly
FY25 marked a subtle but important shift. Management stopped chasing reckless volume growth and started talking about cost reduction (₹200 Cr), engineering acquisitions, and capacity utilisation — language usually spoken by companies that want their stock to behave, not just their sales team.
Yet markets remain skeptical. At 41.6x trailing P/E, IFB is priced like a premium brand,
but operates in a brutally competitive category with LG, Voltas, Blue Star, and every Chinese OEM waiting at the border.
Question for you:
Do you value brands or balance sheets more when margins are thin?
3. Business Model – WTF Do They Even Do?
Think of IFB as two roommates sharing the same P&L:
A. Home Appliances (≈80%)
- Front & top load washing machines
- Dishwashers, dryers, microwaves
- ACs, chimneys, modular kitchens
- After-sales service (the silent cash stabiliser)
Front-load washing machines alone contribute ~40% of Q2 FY26 revenue. Service revenue at 19% is the unsung hero — boring but sticky.
B. Engineering Segment (≈17%)
This is where finance nerds get excited.
- Fine Blanking (80% of engineering revenue)
Clients include OLA Electric, ABB, Modine
Disc brakes, switchgear assemblies, EV-ready components
Kolkata plant: near full capacity - Stamping Division
Existing plants full; new greenfield Northern India plant coming up - Motors & Electronics
BLDC motors for EV cooling & ventilation — small today, optionality tomorrow
Management targets ₹500 Cr new orders in 2 years and acquisitions adding ₹700–800 Cr annual revenue. If even half executes, valuation math changes dramatically.
Lazy investor translation:
Machines bring cash, metal brings margins.
4. Financials Overview –
