Synopsis:
Igarashi Motors reported weak Q1FY26 earnings with net profit down 18 percent sequentially and 69.2 percent year-on-year. Operating margin and PBT also declined despite an 8.1 percent rise in revenue QoQ. The stock fell 12.27 percent intraday following the results.
A small-cap auto ancillary stock fell sharply on Thursday after reporting a weak June quarter, weighed down by sequential and annual decline in profitability and operating margins. The stock came under pressure as investors reacted to continued earnings erosion despite higher sales.
Igarashi Motors India Ltd, with a market cap of Rs. 1,775.19 crore, opened at Rs. 623.65 at the same levels as against its previous close of Rs. 623.65. The stock dropped to an intraday low of Rs. 547.05, registering a sharp fall of 12.27 percent.
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What’s the News?
Quarter-on-quarter, Igarashi Motors’ revenue increased 8.1 percent to Rs. 204.71 crore in Q1FY26 from Rs. 189.47 crore in Q4FY25. However, operating profit remained nearly flat at Rs. 19.61 crore, down 0.5 percent from Rs. 19.71 crore. Profit before tax declined 15.8 percent to Rs. 3.37 crore from Rs. 4 crore, while net profit fell 18 percent to Rs. 2.51 crore from Rs. 3.06 crore. Operating margin contracted to 9.58 percent from 10.40 percent in the previous quarter.
Year-on-year, the company’s performance weakened across all key metrics. Revenue declined 7.8 percent from Rs. 222.07 crore in Q1FY25 to Rs. 204.71 crore in Q1FY26. Operating profit fell 22.5 percent to Rs. 19.61 crore from Rs. 25.32 crore. Profit before tax dropped sharply by 69.1 percent to Rs. 3.37 crore from Rs. 10.92 crore, while net profit declined 69.2 percent to Rs. 2.51 crore from Rs. 8.16 crore.
Foreign institutional investors sold their stake slightly in the company, reducing their holding from 1.15 percent in March 2025 to 0.94 percent as of June 2025. Igarashi Motors operated 9 manufacturing units and 2 logistics warehouses as of March 2025.
Automotive business contributed 83 percent to total revenue, while the non-automotive accounted for the remaining 17 percent. By geography, export automotive made up 55 percent of the total business, including 29 percent of total sales from the United States. Domestic automotive contributed 28 percent and domestic non-automotive stood at 17 percent.
About the Company
Igarashi Motors India Ltd is engaged in the production and export of Permanent Magnet DC Motors for the passenger vehicle segment. Incorporated in 1992 as CG Igarashi Motors Ltd, the company began as a joint venture between Crompton Greaves Ltd, Igarashi Electric Works Ltd (Japan), and International Components Corporation (USA).
Since 2000, it has expanded from contract manufacturing to designing and manufacturing critical automotive applications. In 2020, it entered the energy-efficient BLDC motor market for ceiling fans and has delivered 5 million BLDC motor solutions till March 31, 2025.
Witten By Manan Gangwar
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