1. At a Glance
Fiem Industries is the lighting wizard of the two-wheeler world — the Gandalf of headlamps, but with better EBITDA margins. Q1 FY26 revenue clocked ₹659 Cr, up 14% YoY, with PAT at ₹58 Cr. Margins? A steady 14% OPM — because apparently inflation, raw material costs, and industry chaos are mere mood swings for them.
2. Introduction
Founded in 1989 and once called Rahul Auto (no relation to your neighborhood mechanic), Fiem is now a ₹4,874 Cr market-cap beast in auto lighting. Their market share in 2-wheeler headlamps is over 30%, meaning that statistically, if you squint into a bike’s headlight at night, you’re probably being blinded by Fiem.
They’ve managed a 21.9% CAGR profit growth over 5 years, almost debt-free status, and a dividend payout ratio that says, “We’re profitable, but don’t get too excited.”
3. Business Model (WTF Do They Even Do?)
- Automotive Lighting & Signaling Equipment:Headlamps, tail lamps, winkers, LEDs — all for two-wheelers and some four-wheelers.
- Rear-view Mirrors:Yes, even the tiny ones you never adjust correctly.
- Other Plastic Moulded Parts:Because if you can mould a mirror, you can mould anything.
OEM customers include Hero MotoCorp, Honda Motorcycle, TVS, Yamaha, Suzuki, and Royal Enfield — basically, every bike brand you’ve ever overtaken in traffic.
4. Financials Overview
Q1 FY26 vs Q1 FY25 vs Q4 FY25
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 659 | 578 | 639 | 14.0% | 3.1% |
| EBITDA (₹ Cr) | 89 | 79 | 85 | 12.7% | 4.7% |
| PAT (₹ Cr) | 58 | 49 | 59 | 18.4% | -1.7% |
| EPS (₹) | 21.85 | 18.58 | 22.36 | 17.6% | -2.3% |
Commentary:Steady growth, strong profitability, and near-robotic consistency in
margins. Only minor QoQ dip in PAT, which is basically a rounding error compared to industry volatility.
5. Valuation (Fair Value RANGE Only)
Method 1 – P/E
- EPS (TTM) = ₹81.13
- Reasonable P/E for high-quality auto ancillaries: 20x–26x
- FV range = ₹1,622 – ₹2,109
Method 2 – EV/EBITDA
- EBITDA (TTM) = ₹333 Cr
- Net Debt ≈ ₹22 Cr borrowings – ₹233 Cr CFO cash ≈ Negative net debt (net cash position).
- EV = ~₹4,650 Cr
- Current EV/EBITDA ≈ 14x; fair range 12x–15x → FV range = ₹1,660 – ₹2,075
Method 3 – DCF
- Base FCF ~₹200 Cr, growth 10%, discount rate 12% → FV ≈ ₹1,700 – ₹2,000
📌Final FV Range:₹1,650 – ₹2,100 (Educational purposes only, not investment advice).
6. What’s Cooking – News, Triggers, Drama
- OEM Demand Push:Two-wheeler production volumes rising, EV headlamp orders starting to tick in.
- Fire Loss
