India Motor Parts & Accessories Ltd Management Discussions

Management Discussion and Analysis Report:

Industry Structure and developments:

The Company operates in a single segment business of sale and distribution of automobile spare parts and accessories across India through its network of branches. Most of the CompanyRss suppliers are Original Equipment Manufacturers (OEM).

The Company expanded its operations by opening ten new branches in the financial year 2025-2026. The Company also successfully implemented a new ERP system during the financial year.

Opportunities and threats:

Opportunities: A key opportunity lies in expanding the dealer network closer to the consumption areas and also ensuring timely availability of parts, while maintaining cost efficiency. This is vital for ensuring sustained growth.

The Company also expects the demand for genuine aftermarket products to sustain in the near future, based on the increasing vehicle park.

Threats: The auto spare parts distribution industry faces several significant threats, especially in the current global environment. Rising fuel prices and inflationary trends may restrict volume growth for genuine parts.

Outlook:

The Indian economy is expected to grow around 6.5% in the upcoming year with the service sector remaining the primary contributor to the overall GDP growth.

The outlook for the auto parts distribution industry remains moderately positive and resilient, with steady long-term growth expected despite short-term challenges. We expect to continue our growth due to our strong presence in smaller cities, towns, and rural areas. Increasing commodity prices may limit the volume growth.

Internal control systems and their adequacy:

The Company maintains an Internal Control System commensurate with the size, scale and complexity of its operation. The internal control system ensures compliance with the operating systems and accounting policies. Audit observations and recommendations along with corrective measures are reported to the Audit Committee on a regular basis.

Financial performance:

The CompanyRss turnover increased to Rs 837.11 Crores in the financial year 2025-26 from Rs 788.81 Crores over the previous financial year. Profit Before Tax (PBT) stood at Rs 114.45 Crores, while other Income increased to Rs 52.43 Crores.

Developments in Human resources:

Employees are the foundation for our enduring growth. As on 31^st March, 2026 the company had 906 permanent employees. The Company has adequately provided for the impact of the New Labour Codes in the P&L. The note on the same are provided in note no 27.6a of the notes to financial statements.

Financial ratios:

The details of financial ratios for the financial year 2025-2026 are provided in Note 38 of the notes to standalone financial statements.