Igarashi Motors India Ltd Management Discussions

Global Economy

The global economy exhibited notable resilience throughout 2025 amid evolving trade policies and divergent regional performances. Investments in technology, notably in artificial intelligence (AI) and associated sectors, helped offset pressures from tariffs and heightened policy uncertainty. Global headline inflation stabilized at 4.1%, with annual rates remaining consistent across regions, aided by several economies reporting figures below market expectations.

The geopolitical environment continues to remain uncertain, with heightened tensions in West Asia emerging as a key source of disruption to global trade, energy flows, and supply chains. While the geopolitical issue continues to have residual effects on crude oil supply/price, commodity markets and logistics, the current focus of global risk has increasingly shifted towards West Asia, where escalating instability is contributing to supply-side pressures, inflationary concerns, and broader market volatility. These developments are creating indirect challenges for industries across sectors, particularly through higher input costs, shipment delays, and uncertainty in the availability of critical materials and services.

Global GDP growth attained 3.4% for the year, in line with prior estimates, though this masked varying performances across other regions. Advanced economies expanded by 1.9%, with the United States achieving 2.1%, supported by strong technology expenditure and fiscal stimulus. The euro area registered 1.4%, while Japan recorded 1.1%. Emerging market and developing economies delivered a stronger performance at 4.4%, led by China at 5.0% and India at 7.7%.

Real GDP Growth (%)

Trade tensions remained a key source of uncertainty during the period. This development added to the unpredictability around future tariff rates, trade policy direction, and the durability of recent bilateral understandings. Policy uncertainty therefore remained elevated, even as businesses continued to adjust to a changing trade environment. Financial conditions stayed broadly supportive overall, while artificial intelligence-related investment and wider technology spending continued to provide an important offset to trade-related headwinds.

Global trade volumes remained steady, buoyed by strong technology exports from Asia that offset weakness elsewhere. Central banks navigated inflation via calibrated monetary adjustments: gradual rate reductions in the United States and United Kingdom, steady policy in the euro area, and modest hikes in Japan. These measures sustained supportive financial conditions against persistent trade and geopolitical headwinds.

(Source: World Economic Outlook (IMF), WEO (IMF)-April)

Outlook

The global economic outlook remains clouded by several risks that may weigh on trade, inflation, and investment conditions in the period ahead. Geopolitical tensions continue to pose a risk to energy markets and supply chains, particularly if disruptions in crude oil and shipping routes persist.

The global economic outlook indicates steady growth of 3.1% in 2026, consistent with 2025 levels before easing slightly to 3.2% in 2027. This forecast incorporates a modest upward revision from prior estimates, driven by sustained technology investments in artificial intelligence and related domains that counterbalance trade policy challenges. Fiscal stimulus across major advanced economies, combined with supportive financial conditions, underpins this path, although risks from policy uncertainty and geopolitical pressures remain prominent.

Advanced economies are projected to achieve moderate expansion of 1.9% in 2026, easing slightly to 1.7% in 2027. The United States is expected to lead with 2.3% growth, supported by fiscal measures such as tax incentives under the One Big Beautiful Bill Act and recovery from the 2025 federal government shutdown. The euro area maintains growth at 1.1% despite structural hurdles and limited benefits from technology investments, while Japan slows to 0.7% following fiscal backing from its new administration.

Emerging market and developing economies should sustain momentum above 3.9% through 2026 and increase to 4.2% in 2027. China anticipates 4.4% growth in 2026, boosted by stimulus measures and reduced US tariffs from the recent trade agreement, before moderating to 4.0% as domestic challenges resurface. India maintains its upward growth trajectory.

Headline inflation is projected to edge down to 3.8% in 2026 and 3.4% in 2027. While the overall trajectory is downward, advanced economies are nearing their stability targets at a slower pace, where price pressures remain more persistent. Global policy rates are expected to follow divergent paths. Rates are projected to decline gradually in the developed economies, while the euro area is expected to maintain steady levels. In contrast, Japan is likely to see incremental rate hikes as it adjusts its long-standing monetary framework.

World trade growth is anticipated to slow to 2.6% in 2026, primarily due to ongoing tariff adjustments and shifting trade policies.

(Source: World Economic Outlook (IMF), WEO (IMF)-April)

Indian Economy

Indias economy in FY 2025-26 has shown steady strength and broad momentum against a global backdrop of geopolitical tensions, trade uncertainty, and financial market swings. Second Advance Estimates (SAE) project real GDP growth at 7.6% and Gross Value Added (GVA) at 7.6%. This highlights the durability of our domestic demand-led growth model. Good agricultural output supported rural incomes. Urban consumption improved with steady employment, tax measures, and lower inflation.

Indias inflation trajectory has remained broadly stable, supported by easing food and fuel pressures and a more resilient domestic price environment.

India continues to remain one of the worlds fastest-growing major economies, supported by resilient domestic demand, strong investment activity, and ongoing structural reforms. However, the latest GDP estimates indicate that India is currently the 6^th largest economy in the world with a nominal GDP of about USD 4.15 trillion in 2026, and not the fourth largest as previously stated. The country is expected to retain its strong growth momentum and may regain a higher global ranking over the medium term as economic expansion continues.

Private consumption continues as a primary driver, aided by lower inflation and higher real incomes. Investments picked up pace, propelled by public capital expenditure that enhanced infrastructure and spurred activity in manufacturing, construction, logistics, and energy sectors. Initiatives like Viksit Bharat 2047 and Kartavya Kaal promote self-reliance, capacity building, and duty-focused development amid external pressures.

Indias inflation trajectory has remained broadly stable, supported by easing food and fuel pressures and a more resilient domestic price environment. In January 2026, headline CPI inflation stood at 2.75% under the revised series, remaining comfortably within the RBIs target range and indicating that price pressures continue to be manageable. This followed an average inflation reading of 1.7% during April to December 2025, which marked the lowest level recorded since the CPI series began. The Government of India has also introduced a new CPI series with an updated base year and basket, which improves data transparency and better reflects current consumption patterns. Together, these developments suggest that inflation remains under control while providing a more reliable basis for assessing price trends and purchasing power.

The Union Budget 2026-27 reinforces the Governments focus on sustaining economic growth through higher infrastructure spending, manufacturing support, and stronger capital formation.

Outlook

The outlook for the Indian economy remains positive and stable. For the upcoming fiscal year (FY 2026-27), real GDP is expected to grow between 6.8% and 7.2%, demonstrating Indias ability to maintain strong momentum even during uncertain times globally. This growth will likely be fueled by ongoing government spending on infrastructure, a steady increase in private sector investment, and a strengthening manufacturing base. Additionally, the services sector is expected to continue its consistent expansion. Backed by a stable economy and steady government policies, India is well-prepared to manage global challenges while ensuring that economic progress remains inclusive and sustainable over the long term.

Industry Overview Global Automotive Industry

The global automotive industry spans passenger vehicles, light commercial vehicles, and heavy-duty trucks, serving both personal and commercial mobility needs across markets worldwide. It includes internal combustion engine (ICE), electric Vehicle (EV), and hybrid powertrains across passenger cars, SUVs, pickups, vans, and specialized commercial fleets. The sector remains a major contributor to economic growth, employment, manufacturing scale, and technological innovation, while continuing to adapt to electrification, supply chain localization, tightening emissions regulations, and changing consumer preferences for connected, sustainable, and intelligent vehicles.

The global automotive industry remains on a strong growth path, with a market size estimated at USD 4,357.69 billion in 2025 and projected to reach USD 8,508.56 billion by 2035, representing a CAGR of 6.92% over the forecast period. Growth is being supported by rising demand in emerging markets, continued electrification, and the increasing adoption of smart and connected technologies across vehicle platforms. The industry is also benefiting from sustainability-led transformation, regulatory support, and ongoing modernization of passenger vehicle production and commercial fleets. These trends are expected to support the sectors transition towards higher-value, technology-driven mobility solutions.

Global Automotive Industry Market Size (In billion)

Sales in 2025 totaled 91.7 million light vehicles worldwide, up from prior years, with China leading volumes.

(Source: S&P Global, Benchmark Minerals)

Passenger cars continue to dominate the global automotive market, supported by demand for sedans, hatchbacks, and SUVs used for personal mobility. Two-wheelers remain an important mass-mobility segment, particularly in the Asia-Pacific, where electric scooters and motorcycles are gaining traction.

Internal combustion engines still account for a significant share of the market, but hybrid technologies are emerging as the fastest-growing powertrain category, supported by improving ICE & battery efficiency, policy incentives, and rising consumer acceptance. These continue to play an important bridging role, particularly in Europe, China, India and Japan.

Indian Automobile Industry

Indias automotive sector is a key contributor to the countrys industrial base and broader economic growth. It plays an important role in manufacturing output, employment generation, and value creation across the supply chain. India also holds a strong position in the global automobile landscape, supported by its large domestic market and leadership across several vehicle categories, including two-wheelers, passenger vehicles, commercial vehicles, and three-wheelers.

In FY 2025-26, Indias automobile industry recorded broad-based growth across all major segments, with domestic sales rising to a seven-year high of 28.3 million units, up 10.4% YoY This compares with domestic sales of 25.6 million units in FY 2024-25. The improvement was supported by better market sentiment, including the impact of GST 2.0 reforms and multiple repo rate cuts during the year.

Exports strengthened as well, rising to 6.6 million units in FY 2025-26 from 5.4 million units in FY 2024-25, marking a growth of 24%.

(Source: SIAM)

Indian Automobile Industry Key Metrics

Passenger Vehicles (PVs)

The passenger vehicle segment achieved a historic milestone in FY 2025-26, recording its highest-ever sales of 4.6 million units. According to SIAM data, this represents a 7.9% year-on-year increase, reflecting strong domestic demand and a steady recovery in consumer sentiment across the country.

This growth was underpinned by a significant improvement in vehicle affordability. Key catalysts included GST rate rationalization and personal income tax relief, which bolstered consumer purchasing power. Additionally, successive repo rate cuts by the RBI led to lower financing costs, making vehicle ownership more accessible to a broader segment of the population.

The sector also achieved a record-breaking performance in the international market, with exports touching ~1 million units, which is a 17.5% increase over the previous financial year. This surge was supported by stable demand and strengthening market share in key regions, including the Middle East, Africa, and Latin America.

(Source: SIAM)

Global Automobile Actuators Market

The global automotive actuators market provides critical mechanical components that convert electrical signals into precise physical movements to control throttle valves, brakes, steering, and safety systems across all vehicle platforms.

The automotive sector represents the largest end-use segment within the global actuators market, which reached a total valuation of USD 41.92 billion in 2025. This market is projected to expand to USD 65.42 billion by 2035, growing at a CAGR of 4.55% during the 2025-2035 period. As an indispensable component of electronic control systems, actuators are critical for converting energy into precise physical movements, enabling the sophisticated automation and streamlining of modern vehicular processes.

Global Actuators Market Forecast

Size, By Product, 2025-2035 (USD billion)

The industry is currently being reshaped by the advent of Industry 4.0 and the Internet of Things (IoT), leading to a shift toward "smart" actuators. These advanced devices are increasingly equipped with sensors that allow for real-time monitoring and predictive maintenance, significantly reducing operational downtime. Electric actuators currently hold the largest market share due to their superior energy efficiency and precision compared to hydraulic or pneumatic alternatives. This trend is further supported by global sustainability initiatives, as manufacturers prioritize low-emission and eco-friendly technologies to align with stricter environmental regulations.

In terms of product design, linear actuators dominate the market due to their essential role in tasks requiring precise positioning within assembly lines and robotics. Rotary actuators remain critical for applications involving angular motion, such as steering systems and valve control. Geographically, the Asia Pacific region maintains clear market dominance. This leadership is underpinned by rapid industrialization, massive manufacturing scale, and the accelerated adoption of automated production lines across the worlds major automotive hubs.

Within the automotive segment, actuators are deployed across a diverse range of critical functions, including engine management, powertrain systems, and vehicle dynamics. They are responsible for regulating throttles, activating control valves, and adjusting engine flywheel torque to optimize overall performance. As vehicles become increasingly intelligent and connected, the integration of high-performance actuation systems has become a primary catalyst for enhancing both passenger comfort and vehicular efficiency.

(Source: Imarc Group)

Indian Automobile Actuators Market

The automotive industry remains a primary end-user, where actuators are indispensable for managing engine functions, braking systems, and vehicle dynamics. Demand is being further stimulated by the "Make in India" initiative, which encourages domestic manufacturing and the development of indigenous technology. As the sector transitions toward Industry 4.0, the adoption of smart actuators equipped with real-time monitoring capabilities is increasing, allowing manufacturers to improve operational efficiency and reduce maintenance costs within automated production lines.

According to IndustryARC, the Indian 4W actuator market is expected to grow at a CAGR of 6.72%, reaching USD 3.62 billion by 2026. Additionally, the India Automotive Actuators Market is projected to witness a CAGR of over 7.8% between 2025 and 2030, supported by the increasing adoption of actuator solutions in comfort and safety applications.

Electric Motor Growth Platforms Expansion of Actuator Motors

Our company expands the scope of actuator motor solutions for four-wheeler and two-wheeler vehicles through diversified applications. Our Company builds on its long-standing global footprint to maintain a leading role in the worldwide actuator arena, particularly strengthening its presence in passenger vehicle for engine air management systems especially electronic throttle control, exhaust gas recirculation, variable geometry turbine, waste gate actuator. We are diversifying our product portfolio in actuator motor for safety applications namely electronic parking brakes, gearbox actuators, park-lock actuators and anti-lock braking system, also vehicle body controls such as trunk opening and closing devices, Seat actuation (folding, sliding, height, reclining, HRA) and air lumbar support. Our Scalable production processes, streamlined operations, a dedicated workforce, strong supply chain base and strong customer ties drive these achievements, cementing our status as a vital player in the global/domestic actuator landscape.

Engine Air Management

Our Company holds an estimated market share of ~13% & ~42% in the global & domestic engine air management motor market respectively, including engine, exhaust, and turbo. The geo-political and tariff issues driving non "D" list sourcing and supply chain localization continuing to increase demand for integrated and higher-value solutions across these applications, supporting broader adoption and strengthening the Companys global & domestic market position.

Our Companys development efforts in this segment are progressing through collaboration on approximately 13 programs with over 9 Tier-1 partners globally. These initiatives establish the foundation for an expected cumulative volume of ~12—15 million motors over the next 3-5 years, reflecting the Companys continued focus on addressing customer needs in engine air management applications.

Safety Systems

Our Company continues to build on strong customer relationships, partnering with leading global Tier-1 customers on eight new safety system programs slated for launch over the next three years. With over 15 active programs across 10 global Tier-1 partners, development momentum remains robust. These programs are expected to generate cumulative volumes of ~32-34 million units, underscoring sustained customer trust and Our Companys capability to address growing demand for advanced safety solutions.

Electric Parking Brake (EPB)

Our company has identified EPB as a sunrise platform with robust growth opportunity.

We have launched EPB application for Korean market, also expanding our footprint in India and Europe Markets. Currently, we are already at scalable utilization levels and looking to expand further. Our Development team has launched 2 product lines (30 & 36 Series) covering 10 new programs alongside five established Tier-1 customers from global and domestic markets with a combined output of ~15 million motors during coming years.

Gear Box Actuators (GBA)

As our motor for GBA application got validated by one European Tier-1 customer, we are in launch phase for this program with expectations for ~3-4 million units overall across the next 3-5 years. Currently, our development team is in discussions on the second program with same customer.

Park Lock Actuators (PLA)

Our development team manages two awarded projects for park lock actuator motors alongside two global Tier-1 customers, with launch scheduled for the second half of FY 2026-27 with cumulative volume of 4-5 million motors in the coming years.

Anti-Lock Braking System (ABS)

Our Engineering team is progressing with one awarded project for 2-wheeler ABS application, alongside one domestic Tier-1 customer, with launch scheduled for the second half of FY 2026-27. Currently, our development team is also in discussions on the second program with domestic Tier-1 customer. These programs are estimated to have cumulative volumes ~10 million motors over the medium term.

Body Systems

Our Company established its presence in the body systems segment with the successful scale-up of a new program for the international passenger vehicle market a few years ago. This momentum continues with nine ongoing programs targeting trunk actuation and seat operation applications across global and domestic markets. These programs are expected to deliver cumulative volumes of ~9-12 million motors over the next three years.

Trunk Opening and Closing Device (TOCD)

Our Company completed development and rollout in late 2024 alongside a top global Tier-1 partner, supported by Igarashi Japan, reaching ~1 million units cumulatively. Production ramps continue with four new programs, aiming 6 million units cumulatively over the next 3-5 years via this vital alliance, strengthening presence in the expanding smart tailgate sector with 4 global customers.

PCB for TOCD - Automotive Electronics

The printed circuit board for the trunk opening & closing device represents the Companys notable step into leveraging the design and development capabilities for PCB - hardware & software. After finishing development, testing, and approval in the previous year, this component advances toward launch on the electronic systems and devices manufacturing line and is integrated along with TOCD motor. The estimated cumulative volumes include a total of 6 million units over the next 3-5 years, creating pathways into broader electronics opportunities within vehicles.

Motor Assembly for Seat

We have successfully launched SOP for Seat Folding application Motor in FY 2025-26 for a global Tier-1 customer. Further our company is progressing on developing other seat actuation motor applications like sliding, reclining, height adjusting, & HRA with Global & Domestic Tier-1 customers with expected cumulative volumes of ~4 million motors going forward, equipping the Company to meet growing needs for enhanced seating comfort and usability across all segments of Passenger Cars.

Sub-assemblies for DC Brushed and Brushless Motors

Our company ranks among long-standing reliable providers of sub-assembly components for DC (brushed and brushless) motors, tailored to specific applications. Our Companys selection encompasses complete motor units, armature setups, brush holder combinations for seating mechanisms, window/wiper regulators, fuel pump systems, coolant valves and damper actuators. Serving across global and domestic customers, our company emphasizes consistent quality, scalability, competitiveness and dependability. Ongoing pursuit of fresh requests for quotations underlines commitment to fresh ideas and portfolio growth, securing a solid foothold amid shifting vehicle sector demands, with opportunities to co-participate in product design & development along with customers.

Sub-Assemblies for Window Lift / Wiper Motors

Power window and wiper systems serve as routine comfort options in passenger cars, which hit roughly 20 million units in FY 2025-26 and is expected to grow to about 27 million in the next 3 years. Our company has been supplying armature assemblies for these systems reliably for more than two decades, delivering ~150 million components since 2010 onwards, while claiming around a third of the local market.

Our development team leads 12 projects with additional volumes of nearly 20 million units in next 3-5 years. Well-placed to considerably increase domestic share from existing levels of 31% (FY26) by blending emerging versatile technologies into window lift / wiper sub-assemblies, our Company focuses on broader opportunities and steady progress tied to rising vehicle dispatches within India.

Carrier Assembly for Fuel Pump

Drawing on more than two decades of experience in co-participating design & development of sub-assemblies for fuel pumps in brushed DC motors, our company earns recognition as a dependable partner for major global Tier-1 customer. The development team coordinates six recent initiatives with prominent industry participants, where two programs began production during the year, and four programs progressing through development phases with additional volumes of nearly 2-3 million units in next 3-5 years, affirming the Companys emphasis on market strength, superior standards, and enduring advancement in fuel pump components.

Molded Stator & Armature Assembly for Fuel Pump

Our Company is advancing in design and development of molded stator and molded armature assemblies for fuel pump applications with global tier-1 customer.

Our engineering team is focusing on Europe & North America region for exploring our Molded Stator product and successfully awarded program is set to be launched in first half of FY 2026-27, with expected volumes of approximately 4-5 million units over a 3-5 year period.

The long-standing molded armature program initiated during the year 2006 continues to remain active. Our development team has introduced two molded armature assembly programs which are under development for a domestic Tier-1 customer, with SOP slotted in the first half of FY 2026-27 with anticipated volumes of over three million units in next 3-5 years.

Sub-assembly for the seat

With over a decade of experience in supplying seat motor sub-assemblies, Our Company has built strong relationships with leading Tier-1 manufacturers globally. To date, more than 36 million comfort motor sub-assemblies have been delivered for seating applications, reflecting proven capabilities in quality, reliability, and scalability. Looking ahead, two additional programs are in the pipeline, with expected volumes of over 5-6 million units across the next 3-5 years.

BLDC Sub-Assemblies - Stator & Rotor

Our Company entered a strategic collaboration with a leading global Tier-1 customer in Europe for the development of stator assemblies for the CCH pump program, with SOP commenced in the year FY2025-26. Currently, our engineering team is also working on the new program for the battery cooling system in EV vehicles and the program is under validation with the same customer. These programs are expected to generate volumes of approximately 3-5 million units in the forward years.

Further strengthening this engagement, Our Company is also working with a leading South-East Asian customer on BLDC stator and rotor assemblies for a damper actuator application for air conditioners. This initiative represents a meaningful opportunity, with projected volumes of 2-3 million units in the forward years with a targeted launch timeline of 12-15 months.

Fast-Moving Electrical Goods Market

BDLC Ceiling Fan Motor Market - Industry Overview

In FY 2025-26, the Indian fan market, comprising both induction and BLDC variants, reached approximately 65 million units, as per industry estimates. Within this, BLDC ceiling fans continue to gain traction, supported by increasing consumer preference for energy-efficient solutions. However, growth during the year remained moderate, impacted by higher upfront costs, limited awareness, channel destocking following new star rating norms, and competition from improved induction fan (IIF) offerings.

The revised star rating norms for ceiling fans, implemented by the Bureau of Energy Efficiency (BEE) from January 1,2026, introduce stricter energy efficiency standards, particularly for higher-rated products, and are expected to support gradual BLDC adoption in the coming years. The BLDC segment accounted for ~10 million units in FY 2025-26. BLDC fans offer advantages such as lower energy consumption, higher efficiency, and improved user convenience. The overall fan market is projected to reach ~72 million units by 2029, driven by premiumization trends including loT-enabled features and enhanced product aesthetics, creating growth opportunities for BLDC Fan segment.

Since entering the BLDC Ceiling Fan in year 2020, Our Company has deployed over ~6 million BLDC solutions and maintained an estimated ~22% market share in FY 2025-26 through partnerships with seven key OEMs inspite of moderate market growth for BLDC Ceiling fans. Our Company continues to focus on innovation through features such as temperature sensing, offline voice recognition, dual-mode operation (hybrid wall regulator), wide voltage compatibility, and smart connectivity via BLE modules. Currently, Our Company is engaged in 10 programs with six major customers, with expected cumulative volumes of ~7-8 million units over the next 3-5 years, reinforcing its position in this evolving market.

Electronic System Design and Manufacturing (ESDM)

Our Company has significantly upgraded its EMS (Electronics Manufacturing Services) facility to support the assembly of automotive electronics products, aligning with the growing demand for high-reliability solutions in this sector.

Key enhancements include:

• Advanced Inline Equipment.

• I nline Laser QR Code Printer: Enables high-speed, traceable product identification.

• In-Circuit Testers: Ensures robust quality through comprehensive electrical testing.

• PCB Depaneling Machines: Offers precise separation of PCBs, reducing stress and ensuring component integrity.

• Conformal Coating Setup: Provides moisture and dust protection to enhance durability in harsh environments.

• Product Reliability Test Chambers: Integrated environmental and stress testing chambers ensure that all products meet stringent quality and reliability standards expected in the automotive industry.

These upgrades position our Company as a top-tier EMS provider, capable of handling a diverse product portfolio while delivering superior quality and performance. With this modernized infrastructure, our company is well-equipped to meet the needs of both existing and future customers in automotive and other high-reliability markets.

Igarashi has strengthened its innovation-led growth with the launch of its highly reliable BLDC driver platform. The newly introduced 9I series is engineered to withstand extreme power conditions, offering surge protection up to 6 kV and voltage endurance of 440 V. This robust design ensures superior performance and durability in challenging electrical environments, reinforcing the companys commitment to quality and reliability.

Building on this momentum, the 9F Fusion series has been introduced to the market and has received an encouraging response from customers. This advanced solution is designed to operate seamlessly with both wall regulators and remote control systems simultaneously, addressing evolving consumer preferences for convenience and flexibility.

Further aligning with market demand, the R&D team has developed an advanced wall regulator BLDC controller capable of maintaining consistent speed even under low-voltage conditions. This innovation enhances user experience by ensuring stable performance in fluctuating power supply.

Collectively, these product innovations have been well received in the market, contributing to improved customer adoption and stronger business performance. The positive traction underscores Igarashis focus on technology-driven differentiation and its ability to anticipate and respond effectively to market needs.

R&D Development Projects

PCB Controllers

Leveraging past 6 year experience in Designing, Development and Testing in PCB controllers, our electronics design team is broad-banding the product portfolio with development of PCB solutions targeting multiple consumer, industrial/domestic, automotive, and energy applications covering controllers for Chimney, Air Cooler/Conditioner, Water Pump, Head Lamp Leveler, power window Anti-pinch & Energy Network interference card.

Stabilizer Bar

A normal stabilizer bar (anti-roll bar/sway bar) helps reduce body roll when the car turns. In advanced vehicles, instead of relying only on a fixed metal bar, an actuator motor can twist or adjust the stabilizer bar actively based on driving conditions. The global active stabilizer bar actuator market is roughly in the range of ~USD 2.1B in 2025 and expected to reach ~USD 4.0B by 2034, with typical growth estimates of around 4.4% CAGR.

Our development team is currently developing an Actuator motor for the Stabilizer bar with the Korean Tier-1 supplier, under commercial discussion and expecting the launch of business in coming years with cumulative volume of nearly 3 million motors in forward years.

Air Lumbar Support

In vehicles with powered lumbar support, the seat has an internal mechanism - often an air bladder - that inflates or deflates to support the drivers or passengers lower back. The air lumbar actuator motor typically drives through a mini air pump, or a mechanical adjustment unit, depending on seat design, to increase or decrease lumbar support, improve comfort on long drives, reduce driver fatigue & enable multi-way seat adjustment in premium vehicles. The global market for the Air lumbar support was roughly ~USD 2.1B in 2025 and expected to grow ~USD 3.7B by 2034, with 5.4% CAGR.

Our development team is currently developing an actuator motor for Air lumbar support (1 Channel, 7 Channel & 13 Channel) with the Korean Tier-1 supplier, successfully completed the validation at tier-1 level and currently proving the same at OEM level. These programs are expected to launch in FY 2027-28 with a volume of cumulatively 2-3 Million motors in coming years.

Manufacturing Strategy

FY 2025-26 has been a year of consolidation for our company with new product launches in safety and body system applications and ramp-up. We continued significant enhancements in manufacturing technology and process automation. We are delighted to register a new milestone in machine building, wherein a new Epoxy coating for armature was built in-house, a rare feat, since globally not more than 2 or 3 manufacturers are capable of making such a machine. With this development, our company is now capable of building in-house machines for all operations of DC motor assembly at global standards economically, which notably strengthens our competitiveness and speed.

Besides, our process automation team has developed a unique Internet of Things (IoT) concept, which is seamlessly in-built into new motor and sub-assembly lines, which is in line with Industry 4.0 level expectations by the customer. Two newly installed motor assembly lines and one sub-assembly line are facilitated and implemented in the year 2025, with stage-wise online data capturing and storage. Such IoT stored data also enables meeting stringent traceability requirements by Global customers.

Recognizing the success of diversification into safety and body systems, our company secured more projects to serve Korean and Indian customers, and a new assembly line was installed for the 30-series electronic parking brake motor assembly. This time, Line was conceived and built, aiming to cover four different motor configurations and with further enriched automation.

On the process quality front, our journey of improving product quality robustness is the focal point, which is driven by the NIL-SPILL strategy. KAIRYO improvement initiative, which was launched last year, continued to be our key strategy for exploring innovative solutions against dynamic challenges in the business scenario. Our company has successfully implemented 227 improvements across the material cost, productivity, quality, and consumables cost categories. These initiatives helped our company to mitigate challenges posed owing to geopolitical developments and cost escalations.

Financial Performance at a Glance

The following table presents the Companys financial performance for FY 2025-26, including revenues, expenses and profits.

Key Financial Ratios

Key Financial Ratios Standalone Operation as per SEBI Listing Obligations and Disclosure Requirements (Amendment) Regulations, 2018.

Particulars	FY 2025-26	FY 2024-25
Debtors Turnover	4.44	4.40
Inventory Turnover	4.99	4.86
Interest Coverage Ratio	2.98	3.21
Current Ratio	1.10	1.24
Debt Equity Ratio	0.28	0.28
Operating Profit Margin (%)	9.8%	11.60%
Net Profit Margin (%)	1.00%	3.00%
Return on Net Worth (%)	3.00%	5.00%

Risk Management

Risk Name	Risk Description	Mitigation Measures
Macro Risks & Strategic Foresight	Igarashi operates in a dynamic global environment where geo-political developments, changing tariff regimes, trade policy and tariff uncertainties, inflationary pressures, geo-political tensions, energy crisis and fluctuations in global automotive demand may impact export business and supply chains.	The Company continues to diversify its customer base and export markets, strengthen supply chain resilience including local-for-local, closely monitor geo-political and regulatory developments, and maintain strong customer engagement to enhance business continuity.
Technological Evolution and Innovation-Readiness	The rapid transition towards vehicle electrification, advanced mobility solutions and evolving customer requirements necessitates continuous product innovation and technology advancement.	The Company responds by channelling resources into research and development to strengthen its Brushless DC (BLDC) motor technologies, develop innovative motor solutions for next-generation mobility, and expand its product portfolio across Engine.
Market Dynamics & Competitive Edge	The Company encounters increasing global competition, pricing pressure, localization requirements and evolving customer sourcing strategies continue to influence market dynamics.	Igarashi addresses these challenges by leveraging its engineering expertise, delivering high-quality Brushless DC (BLDC) motor solutions, enhancing cost competitiveness, strengthening operational efficiency, re-alignment of supply chain to meet customer requirements and expanding its presence across global OEMs, new applications, and export markets to sustain long-term growth and competitive advantage.
Operational Excellence & Agility	Igarashi addresses demands of rigorous quality benchmarks, intricate supply chain dynamics, raw material price volatility, logistics challenges and workforce adaptation alongside advancing automation in production processes.	The Company strengthens supply chain durability, integrates digital advancements in manufacturing, and continuously upgrades employee capabilities. Improvements encompass design and testing facilities, incorporating failure mode effects analysis alongside comprehensive system validation assistance.
Financial Stability & Risk Hedging	The Company manages Foreign Exchange Fluctuations, commodity price volatility, interest rate movements and changing global economic conditions may affect financial performance.	Igarashi follows prudent financial management practices, deploys effective hedging protocols overseen by the audit committee, applies commodity price pass-through arrangements, optimizes working capital, secure suitable insurance for liabilities, and pursues flexible capital allocation strategies.
Cybersecurity & Digital Trust	The Company confronts escalating cyber risks, data protection challenges, and evolving regulatory requirements for personal data.	Igarashi strengthens its cybersecurity framework through robust IT controls, periodic vulnerability assessments, enhanced data protection measures, employee awareness programes, and continuous real-time monitoring of critical systems to safeguard business continuity and regulatory compliance.
Sustainability & ESG Leadership	Igarashi tackles requirements for environmental regulations, customer sustainability expectations and workplace safety & welfare requirements continue to shape business operations.	Igarashi promotes sustainable manufacturing through energy-efficient operations, responsible resource management, dependable ESG compliant supply chain system, regulatory compliance, and continuous improvement in ESG practices while fostering a safe, healthy, and inclusive workplace for its employees.
Resilience Against Natural Calamities	Igarashi faces interruptions from natural disasters, climate-related events, pandemics and other unforeseen disruptions.	Igarashi maintains business continuity and disaster recovery plans, periodically reviews crisis response mechanisms, periodical mock disaster exercises and strengthens operational resilience through pro-active risk management.

Human Resource

Igarashi regards its workforce as the primary resource, acknowledging their essential contribution to daily functions. The Company regularly conducts programes in leadership, technical areas, and interpersonal skills to strengthen employee competencies. A comprehensive human resources framework promotes fairness and openness throughout, cultivating a secure, collaborative atmosphere that enables staff to perform at peak levels, harmonising individual aspirations with corporate objectives.

The Company motivates and involves its employees, aiding their personal advancement while driving collective progress. As of March 31, 2026, the total number of employees stands at 774.

Internal Control Systems and their Adequacy

The Company has established a strong internal control system. The adequacy of the system is validated by its role in ensuring proper authorization, recording and reporting of transactions, along with safeguarding company assets.

Moreover, the Company has well-documented policies and procedures, reinforced by extensive reviews conducted by internal auditors. These review reports are periodically evaluated by the management and the Audit Committee of the Board, contributing to a business environment with minimized risks.

Cautionary Statement

The Management Discussion and Analysis include statements that look ahead, outlining the Companys aims, forecasts, approximations, and anticipated outcomes. These projections remain open to various risks and unknowns. Realized performance may vary considerably from projections stated or suggested, influenced by circumstances impacting the Companys activities.