Board approves MoA object clause change, fresh capex, solar SPV investment and Korea seat JV
Postal ballot approved to alter MoA object clause 3(a), adding consultancy, advisory and support services for the automotive industry.
By ScoutQuest · · 3 min read
- Q2 standalone revenue
- Rs. 23,605.24 lakhs
- Q2 standalone net profit
- Rs. 1,759.54 lakhs
- Capex approved
- Rs. 11.34 crore (Naviyani, Gujarat) and Rs. 7.19 crore (Kharkhoda, Haryana)
What the board approved
The Board of NDR Auto Components met on 4 November 2026 and approved the unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2026, fresh capital expenditure at two plants, an investment in a solar power special purpose vehicle, a joint venture with a Korean partner, and a postal ballot on two shareholder resolutions. The update is marked as price sensitive information.
The quarter at a glance (standalone)
- Revenue from operations: Rs. 23,605.24 lakhs
- Net profit: Rs. 1,759.54 lakhs, against Rs. 1,389.51 lakhs in the same quarter a year earlier
- On a consolidated basis, net profit for the quarter was Rs. 1,977.98 lakhs
- The statutory auditors' limited review reports on both sets of results carry no qualification or adverse remark; they include an emphasis of matter on the income tax search covered in the notes
Capital expenditure for new programmes
- Rs. 11.34 crore for the plant at Naviyani, Gujarat
- Rs. 7.19 crore for the plant at Kharkhoda, Haryana
- The spend is for new programmes of Maruti Suzuki India Limited and Suzuki Motorcycle India Private Limited, in the ordinary course of business
Joint venture for passenger car seats
- The Board approved entering into a Joint Venture Agreement with DYA Co., Ltd., a company incorporated under the laws of the Republic of Korea and listed on the Korean Exchange
- Purpose: design, manufacture and supply of passenger car seats in India, primarily for supply to Kia India and Hyundai India
- NDR will hold 51% shares in the proposed JV company, with DYA holding the balance
- The JV company is proposed to be incorporated in India and will become a subsidiary of the Company upon incorporation
Captive solar power
- Approved investment in the equity shares of a Special Purpose Vehicle amounting to Rs. 36.30 Lakhs, in one or more tranches, for sourcing power through captive solar energy
Postal ballot proposals
- Enhancement of the limit of Material Related Party Transactions with Bharat Seats Limited
- Alteration of Object clause 3 (a) of the Memorandum of Association: a new sub-clause 3 is to be added covering consultancy, advisory and support services to all types of industry in the automotive sector, including marketing, technical, management, finance, legal, human resources/work force and administrative support services
- Existing sub-clauses (3) and (4) are to be re-numbered as (4) and (5), without any change
- The MoA alteration is subject to members' approval by special resolution and the approval of the Registrar of Companies (Delhi)
- The postal ballot notice will be uploaded once it is dispatched to members
Income tax proceedings
- A search under Section 132 of the Income Tax Act, 1961 was conducted in an earlier year at premises including manufacturing locations and residences of some employees/key managerial personnel
- The Commissioner of Income Tax (Appeals) deleted the additions made for certain assessment years and granted partial relief for another, reducing the demand
- During the current quarter, the Income Tax Department shared an appeal before the ITAT against the relief granted, and the Company shared an appeal before the ITAT against the demand sustained
- Management believes it has a favourable position; no adjustment has been made to these results pending the outcome
Other points from the update
- The Company granted stock options during the quarter under the Employee Stock Option Plan, 2024, subject to specified vesting criteria
- The Company operates in a single reporting business segment and only in India
Taken together, the update carries both the quarterly numbers and a set of expansion decisions — the two-plant capex, the solar SPV and the Korean joint venture — along with the shareholder approvals being sought through postal ballot. The income tax matter continues in appeal, with management stating a favourable view and no adjustment in the accounts.
Also from NDR Auto Components
Board approves Q2 results, capex, solar SPV investment, Korea JV and postal ballot
4 Nov 2026
September quarter results, capex for two plants, DYA joint venture and postal ballot
4 Nov 2026
NDR Auto Q2 & H1 FY27: revenue up 22.0%, PAT up 33.2%, order book at Rs. 1,150 crore
4 Nov 2026
More numbers
- Additional capex for Naviyani, Gujarat plantRs. 11.34 crore
- Additional capex for Kharkhoda, Haryana plantRs. 7.19 crore
- Investment in SPV equity shares for captive solar powerRs. 36.30 Lakhs
- NDR shareholding in proposed JV company with DYA51%
- Standalone revenue from operations, Q2 FY2623,605.24 lakhs
- Standalone net profit, Q2 FY261,759.54 lakhs
- Standalone net profit, Q2 FY251,389.51 lakhs
- Consolidated net profit, Q2 FY261,977.98 lakhs
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