SEDEMAC Mechatronics is scaling up its manufacturing footprint after closing fiscal year 2026 with its strongest financial performance to date, as the company moves to consolidate its position in automotive control systems, according to a recent investor presentation.
The Pune-based firm reported a 61% year-over-year jump in revenue to Rs 1,058 crore in FY26, crossing the Rs 1,000-crore milestone for the first time. Profit after tax rose 119% to Rs 104 crore, while return on capital employed stood at 40%, reflecting strong operational efficiency and growing scale in a competitive electronics segment.
SEDEMAC develops and supplies control-intensive electronic control units and related systems to automotive and industrial equipment manufacturers across India, the United States and Europe, giving it a diversified market presence across both geographies and applications.
Building on this momentum, the company is undertaking a significant expansion in Chakan, near Pune, where it already operates two facilities — a 40,000-square-foot main plant and an 8,000-square-foot unit. A new 120,000-square-foot plant dedicated to ECUs is being readied, with shipments expected to begin in the second quarter of FY27. This will be followed by a 9,000-square-foot facility focused on electric machines, scheduled to come on stream in the third quarter.
At the same time, SEDEMAC is extending its geographic footprint with the acquisition of 13 acres in Shoolagiri in Tamil Nadu’s SIPCOT industrial area. The planned southern hub aims to bring production closer to key OEM customers, reducing logistics costs and improving delivery timelines.
The company’s product mix is also evolving in line with industry shifts toward electrification. Revenue from EV-focused products in the two- and three-wheeler segments has risen sharply from 0.3% in FY24 to 7.4% in FY26, indicating growing traction in electric powertrain components. Parallel moves into the North American generator market and the commercial vehicle segment are helping diversify its end markets.
Customer concentration, historically a key risk, is gradually moderating. The gap between revenue contribution from its largest customer and its next four biggest clients has narrowed significantly, falling from 70% in FY24 to 49% in FY26, reflecting a more balanced order book.
Looking ahead, management expects growth to be supported by new product introductions and rising EV volumes. The company is preparing to launch integrated starter generator ECUs for variants of three high-volume motorcycle models from leading manufacturers, with initial rollouts expected early in FY27. Production ramp-up of electric two-wheeler motor control units, which began toward the end of FY26, is also expected to contribute meaningfully to volumes.
However, SEDEMAC cautioned that supply-side pressures could temper margins. Tightness in semiconductor availability and rising commodity costs may exert mild pressure on EBITDA, while the prospect of a strong El Niño could weigh on demand in agriculture-linked domestic markets.