Ndr Auto Components Limited has informed the Exchange regarding Board meeting held on August 11, 2025.
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NDR Auto Components' Board, which met on August 11, 2025, approved the unaudited standalone and consolidated financial results for Q1 FY26 (quarter ended June 30, 2025), with the auditor (S.R. Batliboi & Co. LLP) issuing a clean limited review report with no qualifications, though noting an income tax search at company premises in an earlier year as an emphasis of matter. The Board approved setting up a new manufacturing facility in Anantapur, Andhra Pradesh for Frame structures, Seat Covers (Trims), and other auto components, with an investment of about Rs. 27.29 crore spread over two financial years. The project will add capacity for 50,000 frame sets (5-seater cars) and 78,000 seat cover sets (7-seater cars) by August 2026, and will be executed through a new 100% wholly owned subsidiary named 'NDR Auto Components South Private Limited' to be incorporated by November 2025 with an initial share capital of Rs. 1 crore. Additionally, the Board approved a long-term office lease of 7,500 sq ft at Aria Signature Office, JW Marriott Aerocity, New Delhi for Rs. 11.25 crore (term till May 2036, extendable to 2066), to house the company's corporate and registered office from January 2027. A CSR Trust will also be created jointly with associate Bharat Seats Limited.
The Rs. 27.29 crore capex plan signals an expansion of manufacturing capacity in South India and a step-up in growth investments, which is positive for long-term revenue potential but will increase capital outlay funded partly by internal accruals and term loans. The long-duration office lease reflects a long-term commitment, while the flagged income tax search remains an unresolved overhang worth monitoring. Overall, the mix of capacity expansion, new subsidiary, and clean Q1 results is mildly positive for shareholders, subject to capex execution and the tax matter outcome.