Igarashi Motors Q3 FY26: ₹216 Cr Revenue, PAT Down 32%, P/E 85 – Is This a Micro Motor or a Slow Motor?
1. At a Glance – The Tiny Motor with a Giant Valuation
₹370 stock price. ₹1,164 crore market cap. P/E of 85.6. ROE of 5.3%. Q3 FY26 revenue at ₹216 crore. PAT at ₹3.50 crore. Quarterly profit down 32.2% YoY. Three-month return: -23.2%. One-year return: -30.5%.
Ladies and gentlemen, welcome to the fascinating world of small motors and big expectations.
Igarashi Motors India Ltd makes tiny permanent magnet DC motors that go inside your car. But the valuation? That one is Formula 1.
While sales are crawling at 2.51% YoY growth in Q3 FY26, the market is valuing this business at a premium multiple of 85x earnings. That’s not optimism. That’s faith.
And faith is powerful… but balance sheets are more powerful.
Let’s plug in the data and see if this motor is humming or overheating.
2. Introduction – From Japanese JV to Indian Midcap Reality
Igarashi Motors started in 1992 as a JV between Crompton Greaves (India), Igarashi Electric Works (Japan), and an American partner. Over time, the Japanese parent consolidated control. Today, promoters hold 75%.
From contract manufacturing to designing actuator motors for Electronic Throttle Control (ETC), the company moved up the value chain since 2000.
They operate in Tier-2, Tier-3, and Tier-4 auto supply chain. Translation? They don’t sell to Maruti directly. They sell to Tier-1 suppliers like Bosch, BorgWarner, Vitesco, etc., who then sell to OEMs.
Revenue split FY23:
Electric Micro Motors: 87%
BLDC: 13%
Geographic split:
India: 36%
Exports: 64%
That export number is interesting. More than half revenue is overseas.
But here’s the uncomfortable question: If global auto demand slows… who absorbs the shock?
And when your PAT margin last year was just 2.88%, how much buffer do you really have?
3. Business Model – WTF Do They Even Do?
Okay. Let’s simplify.
Imagine your car has dozens of small motors:
Throttle control
EGR valve
Turbo actuator
Seat motors
Window lifters
Fuel pump components
That’s Igarashi’s playground.
They make permanent magnet DC motors and sub-assemblies for automotive applications. These motors work in:
ICE vehicles
Hybrid vehicles
BEVs
So yes, they are “technology agnostic.”
But here’s the catch: Most revenue still comes from traditional automotive micro motors.
BLDC motors (brushless DC) are growing, with capacity scaling from 1 million to 2 million units. These go into:
Consumer durables
Energy-efficient appliances
Potential EV applications
They even manufacture PCBs with RF and IoT features.
Sounds fancy.
But numbers decide reality.
Are BLDC revenues moving the needle meaningfully? Not yet.
And the automotive segment? It’s competitive, price-sensitive, and customer-concentrated.
When Bosch sneezes, does Igarashi catch a cold?
4. Financials Overview – Numbers Don’t Spin, They Expose
