NDR Auto Components (NDRAUTO) Q2 FY27 Profit Jumps 35% as Order Book Swells to ₹1,150 Crore
The auto seating supplier posted a 35% YoY profit rise on robust demand, but a sharp rise in receivables is absorbing cash flow.
NDR Auto Components delivered a strong Q2 FY27 with profit up 35% and revenue up 22% year-on-year. The company's order book surged to ₹1,150 crore, though working capital pressures have intensified.
For a seating supplier, visibility comes from the order book. NDR Auto Components entered the September quarter with a clear pipeline and strong passenger vehicle demand, delivering a 35% jump in profit. The story, however, is split between top-line momentum and the cash it consumes.
The numbers show broad-based strength. Revenue reached ₹244 crore, up 22% from a year ago and 10% from the June quarter. Profit grew even faster to ₹20 crore, lifting the net profit margin to 8.2%, an 80-basis-point improvement both yearly and quarterly.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 244.0YoY +22% | 221.5 | 200.0 |
| Profit (₹ Cr) | 20.0YoY +34% | 16.4 | 14.9 |
| Net Margin (%) | 8.2YoY +11% | 7.4 | 7.4 |
Growth Fueled by a Surging Order Book
The revenue growth was driven by strong demand in the automotive seating segment, as noted by scanx.trade. More importantly, the company reported its standalone order book ballooned to ₹1,150 crore as of September 30. This includes ₹500 crore in new orders won during the quarter itself, providing clear runway for future sales.
Where the Profit Growth Came From
Profit growth outpaced revenue due to a combination of operating leverage and a significant jump in other income. While total expenses rose in line with sales, a tenfold year-on-year surge in other income to ₹9 crore provided a substantial boost. This item, however, may not be recurring at this scale.
Simultaneously, depreciation rose 40% yearly, reflecting the ongoing capital expenditure for new facilities. The company has plans for ₹50-60 crore in capex this fiscal year, funded internally, to expand capacity.
The Cash Flow Catch
Beneath the profit growth lies a working capital strain. According to the investor presentation highlighted by scanx.trade, standalone trade receivables surged sharply between March and September 2026. Coupled with a decline in cash balances, this indicates a substantial portion of reported profit is being absorbed into working capital rather than converting to cash inflows.
This tension between profitable growth and cash conversion is the quarter's defining feature. Management expects EBITDA margins to remain stable around 11-12%, supported by operational efficiencies and the pass-through of raw material costs to OEMs.
Key Points
- Consolidated net profit grew 34.7% year-on-year to ₹20 crore on revenue of ₹244 crore.
- The standalone order book swelled to ₹1,150 crore, providing strong revenue visibility.
- Profitability was aided by operating leverage and higher other income, though working capital pressures intensified.
- The company plans ₹50-60 crore in annual capex to support new capacity and product lines.
Hexa Perspective
NDR Auto's quarter confirms robust demand in its core seating business, translating directly into top-line growth and margin expansion. The order book offers multi-quarter revenue visibility, a clear positive.
The concern is the deteriorating cash conversion. If receivables continue to climb faster than revenue, it could pressure the balance sheet despite healthy profits. Investors are weighing strong operational execution against the need for working capital discipline as expansion continues.
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