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About the Company
SEDEMAC Mechatronics Ltd. is a Pune-based control electronics and powertrain control solutions company incorporated in 2007. The company designs and manufactures motor control systems, powertrain controllers and integrated starter-generator solutions for automotive and industrial applications.
Its key strength lies in patented sensor-less motor control technology, enabling precision performance without external sensors. SEDEMAC works closely with OEMs and is strategically positioned to benefit from rising electrification in two-wheelers, three-wheelers and power equipment segments.
With strong engineering capabilities and scalable electronic platforms, the company operates in a high-growth electrification theme.
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Financials – Restated Statement of Profit & Loss
(All amounts in ₹ million)
| Particulars | 9M FY26 (Dec 31, 2025) | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Revenue from Operations | 7,706.65 | 6,583.63 | 5,306.53 | 4,230.28 |
| Other Income | 46.41 | 41.73 | 52.43 | 68.38 |
| Total Income | 7,753.06 | 6,625.36 | 5,358.96 | 4,298.66 |
| Total Expenses | 6,670.36 | 5,948.37 | 5,270.83 | 4,218.59 |
| Profit Before Tax | 1,082.70 | 676.99 | 88.13 | 80.07 |
| Total Tax Expense | 367.72 | 206.54 | 29.35 | (5.66) |
| Profit After Tax | 714.98 | 470.45 | 58.78 | 85.73 |
| Basic EPS (₹) | 16.59* | 10.93 | 1.45 | 2.12 |
| Diluted EPS (₹) | 16.35* | 10.82 | 1.39 | 2.04 |
*9 months EPS not annualised
🔎 Key Highlight – 9 Month Performance (1 April 2025 – 31 December 2025)
• 9M FY26 revenue (₹7,706.65 million) has already surpassed full FY25 revenue.
• 9M PAT (₹714.98 million) is significantly higher than FY25 PAT (₹470.45 million).
• 9M EPS stands at ₹16.59.
Estimated Annualised EPS = ₹16.59 × (12/9) ≈ ₹22.67
This sharp earnings acceleration indicates strong operating leverage and scale benefits.
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Key Performance Indicators (FY25)
| KPI | FY25 |
|---|---|
| ROE | 22.01% |
| ROCE | 33.79% |
| Debt/Equity | 0.21 |
| PAT Margin | 7.15% |
| EBITDA Margin | 19.00% |
| Price to Book Value | 18.89 |
The company maintains strong capital efficiency with low leverage and high ROCE.
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Valuation Analysis
Upper Price Band: ₹1,352
Annualised EPS (FY26E based on 9M): ₹22.67
Implied P/E = 1,352 ÷ 22.67 ≈ 59.63x
At ~59.6x earnings, valuation appears reasonable considering:
• Strong 9M earnings momentum
• High ROCE (33.79%)
• Low debt profile
• Electrification growth theme
Compared to other listed peers in automotive electronics and high-tech auto ancillary space, the valuation is not aggressive when adjusted for FY26 earnings momentum.
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Industry Scenario
The automotive electronics and electrification segment is witnessing structural tailwinds driven by:
• Rapid EV penetration in two-wheelers & three-wheelers
• Increasing electronic content per vehicle
• Emission efficiency norms
• OEM transition toward intelligent control systems
This theme offers multi-year visibility, benefiting players with proprietary technology.
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Final Verdict
SEDEMAC has delivered a sharp earnings acceleration in 9M FY26, with PAT already exceeding full FY25 levels. Annualised EPS of ₹22.67 brings valuation down to ~59.63x, which appears reasonable relative to growth trajectory and peer benchmarks.
Strong ROCE, low debt and positioning in the electrification theme strengthen the investment case.
Chanakya View: Positive. APPLY for listing gains as well as medium-term participation in the electrification theme.
Chanakya Verdict Block
Investment Stance: APPLY
Risk Meter: Moderate
Valuation Meter: Reasonable (Based on FY26 Annualised Earnings)
Theme Strength: Strong – Electrification & Control Electronics
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