Synopsis:
Bharat Seats jumped sharply after Rohit Relan Family Trust plans to acquire a 16.38% direct stake in the company and acquire NDR Auto Components’ shares (73.13%) through an indirect method to take control of the company through an internal family restructuring.
The shares of this leading manufacturer of automotive seating systems for Maruti Suzuki are in focus after a key shuffling in its shareholding structure. In this article, we will dive more into the details.
With a market capitalization of Rs 1,013 crore, the shares of Bharat Seats India Ltd made a day high of Rs 161.35 per share, up by 5 percent (upper circuit) from its previous day closing price of Rs 153.70 per share. Over the past five years, the stock has delivered a robust return of 435 percent, against the NIFTY 50 return of 130 percent.
About the announcement
The Rohit Relan Family Trust is planning to directly acquire 1,02,88,358 equity shares representing 16.38 percent of Bharat Seats Limited. Additionally, the Trust will go for an indirect method by taking over 73.13 percent of NDR Auto Components, which holds 28.66 percent in Bharat Seats.
Such a takeover is an internal family restructuring to ease succession, which is expected to bring positive results to the promoter family and their heirs. SEBI has permitted such a non-open offer exemption as it is a non-commercial transaction and within the promoter family.
The Trust must comply with conditions such as submitting a report to SEBI within 21 days of the transaction, as well as ensuring that it meets all the relevant laws and regulations.
Maruti Suzuki India and Suzuki Motor Corporation hold a 14.81 percent stake each in Bharat Seats. In this article, we will dive more into the details of this transaction’s highlights.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 427.06 crore, up by 43 percent from Rs 298.85 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 9 percent from Rs 392.91 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 39 percent to Rs 9.18 crore in Q1 FY26 as compared to Rs 6.61 crore in Q1 FY25. However, on a QoQ basis, it recorded a decline of 19 percent from Rs 11.39 crore.
The company has delivered an ROE and ROCE of 18.04 percent and 15.65 percent respectively, and is currently trading at a P/E of 28.73x in line with its industry average of 28.72x.
Bharat Seats Limited was established in the 1980s as a joint venture between Rohit Relan & Associates, Maruti Udyog Limited, and Suzuki Japan. It turned out to be one of the top manufacturers of automotive seating systems for Maruti Suzuki. Currently, it also produces carpets, NVH components, body sealing parts, and railway seating. The company has fully equipped plants spread over five locations in India with high-level testing labs and is always upgrading its engineering and quality systems.
Written by Satyajeet Mukherjee
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