Auto Ancillaries 2026: Fiem Industries & Sandhar Tech Financials, Indices & Investor Guide

The automobile and ancillaries’ sector in India is all set for strong growth in 2026, with the overall auto market expanding from USD 137.06 billion in 2025 to USD 147.58 billion, riding on EV adoption, premiumization, and policy support such as GST rationalization. Revenues of auto ancillaries would increase in a range of 8-10% for OEMs and 7-9% in replacements, backed by growth in vehicle parc and exports, even as the US market faces some challenges.

The key trends are sustained sales growth of 6-8%, capex of Rs. 25,000-30,000 crores to enable EV localization, emerging opportunities in SUVs, CNG, and regulatory upgrades. Investors can keep an eye on stocks like Fiem Industries Ltd. (around Rs.2,145, market cap Rs.5,647 Cr, strong ROCE 25.5%) and Sandhar Technologies Ltd. near Rs.560, up 45% in 6 months, for their lighting and modules businesses.

Get live Fiem industries share price and Sandhar technologies share price insights via Enrich Money's Orca platform and take the right bets on auto-sector stocks.

S&P BSE SmallCap, S&P BSE MidSmallCap Index

S&P BSE SmallCap and the S&P BSE MidSmallCap indices extend beyond the top 100 into smaller companies in the BSE, which would give investors exposure to great growth prospects in India's equity markets. The SmallCap index covers the lowest 5% for market capitalization, or 95-100% coverage, focusing on emerging firms with volatility but strong upside; MidSmallCap blends mid and small caps from BSE 500 excluding BSE 100 for broader diversification.

Constituents like Fiem Industries and Sandhar Technologies are representative of auto ancillary players, showcasing resilience amidst supply chain changes.

These indices help in benchmarking, with the recent levels for SmallCap being around 46,825. Investors are keenly following Fiem Industries share price and Sandhar Technologies share price for sectoral trends pertaining to EV and its components.

Company Profiles & Business Segments

Overview Of Fiem Industries Ltd.: Business Mix, Strategy, and Recent Trends in 2026

Fiem Industries Ltd. is a company specializing in the production of auto parts like headlamps, auto light and signal devices, rear view mirrors, sheet metal parts, and plastic components for clients such as Honda, TVS, Royal Enfield, and other two-wheeler automakers. 

Their primary focus is in auto light devices at 93%, followed by auto mirrors at 5%. Their expansion strategy involves generating capex of Rs.75-100 crore for FY2026 as it expands its LED division and four-wheelers. This is achievable with cash reserves of Rs.300 crore and R&D centers in India, Italy, and Japan. Indeed, in FY2026, H1FY26 sales rise by 15% to Rs.13,617 million. Despite the setback in having a fire accident in their India plant, PAT grows by 21%. This demonstrates the firmness of Fiem industries share price  as growth in the auto sector accelerates.

Overview Of Sandhar Technologies Ltd.: Business Mix, Strategy, and Recent Trends in 2026

Sandhar Technologies Limited, primarily deals with the production of automotive parts, focusing on safety products for automobiles. The business segment includes locking system, vision system, cabin, and emerging EV products, including battery chargers.

The company's strategy mainly focuses on diversifying the portfolio, content per vehicle growth, and internationalization through manufacturing plants in Spain, Mexico, and Poland.

In 2026, there are strong trends according to the report by Sandhar, such as Q2 FY26 revenue up by 29% YoY, domestic ops up by 33%, with robust order books & EV billing gains. Sandhar Technologies share price has surged by 5.91% on a weekly basis by the starting of January, reflecting bullish momentum near 52-week highs.

Fiem Industries vs Sandhar Technologies Share Price Movement

Fiem Industries share price recorded remarkable growth as it increased from around Rs.1,400 in early 2025 to above Rs.2,200 by the end of December 2025, posting yields of more than 50% in an impressive quarterly earnings streak for the company. On the other hand, Sandhar Technologies share price has increased steadily from around Rs.370 in early April 2025 to about Rs.540 in mid-December.

 

Fiem Industries share price target for the year 2026 is set at Rs.2,700 - Rs.3,400, all thanks to revenue growth. Sandhar Technologies share price target is set to aim for Rs.730 - Rs.950 by the end of the year, all thanks to market trends. Investors are looking for higher momentum with Fiem for higher momentum, while Sandhar offers stability.

Q2 FY2026 Financial Comparison: Both Fiem Industries Limited and Sandhar Technologies Limited Q2 FY2026 Performance Summary

The financial performance in the second quarter of fiscal year 2026 was varying for Fiem Industries Limited and Sandhar Technologies Limited, two prominent auto ancillaries listed with the Indian Stock Market. Sandhar Technologies reflected good growth in all areas, while Fiem Industries reflected good growth in a competitive sector environment.

 

Fiem industries had an more dominant market presence with its market price at Rs. 2145.6 as compared to its counterpart Sandhar's at Rs. 495.6. Moreover, it had a higher capitalization with its market capitalization standing at Rs. 5647.15 crores compared to the lower market capitalization of Rs. 2983.05 crores. In terms of stock valuation, the Fiem had a P/E of 25.19, reflecting higher investor confidence in premium pricing. In contrast, Sandhar  had a lower valuation with its P/E standing at 17.33. Both companies had good capital efficiency as there was a higher return on capital employed of 27.8% as compared to Sandhar's 12.32%.

Revenue Momentum

Quarterly sales achieved by Fiem Industries for Q2 FY2026 were at Rs. 715.39 crores, witnessing an appreciable growth of 16.82 percent sequential growth on continued demand for lighting and plastic parts used in auto parts for two/four Wheelers. Sandhar Technologies crossed this by reporting sales of Rs. 1270.37 crores for Q2 as sales grew by an impressive 29.08 percent sequentially on higher volumes for its metal parts business, locking business, forgings segment.

With this divergence in revenue streams, it is clear that there were sectorial tailwinds to the revenue growth trend observed, as Fiem leveraged exports as well as OEM revenue streams, whereas Sandhar leveraged revenue streams from various categories, such as CVs and EV parts. Overall, the automobile ancillary space witnessed better supply chain stability, although there was raw material volatility faced by both stocks.

Operating Strength

The operating profit for Fiem Company was at Rs. 98.99 crore, while it had an EBITDA profit at Rs. 104.54 crore. Sandhar had an operating profit at Rs. 118.1 crore with an even more enhanced EBITDA profit at Rs. 156.77 crore due to its large revenue size and increased production efficiencies.

The margin profile shows Fiem’s competitiveness on profitability per rupee of sales with its 14.6% EBITDA margins, compared to Sandhar’s 12.3%, as Fiem has concentrated on premium products in lighting solutions. Both companies have managed their operating discipline well in this cyclical business against increasing energy costs.

Core Earnings Breakdown

Depreciation charges were much lower for Fiem at Rs. 19.34 crore, given its leaner asset base, compared to Rs. 43.69 crore for Sandhar, related to an extended manufacturing footprint. Post-depreciation, Fiem's EBIT was Rs. 85.2 crore while that for Sandhar was Rs. 113.08 crore, supported by volume leverage.

Pre-tax profits reflected the same, with Fiem coming in at Rs. 84.83 crore and Sandhar at Rs. 95.69 crore, as a minimal interest burden highlighted their debt-light balance sheets. These point to Fiem's consistent execution compared to Sandhar's aggressive scaling.

Surge in Profitability

Despite volume growth supported by pricing discipline, the net profit of Fiem Industries rose 26.91% YoY to Rs. 63.67 crore, while Sandhar Technologies posted a net profit of Rs. 73.38 crore, up 83.36% quarter on quarter, on the back of one-off efficiencies and strong top-line growth on a low base, which possibly makes it the star performer.

Both matched PAT net profit at identical levels and did not report significant exceptional items that diluted their bottom lines. Sandhar's three-digit leap in profits signals momentum in its auto and aerospace segments, while Fiem's steady gain reinforces its niche leadership.

Capital Deployment

Equity capital for Fiem remained compact at Rs 26.32 crore, allowing for higher returns against the Rs 60.19 crore base for Sandhar to support broader operations. Both maintain prudent leverage, positioning them well for capex in EV transitions and capacity builds. Fiem's higher ROCE reflects better utilization of plants, while Sandhar's growth trajectory indicates future improvement.

Comparative Insights

Fiem Industries has an edge in valuation premium, returning on capital employed, and efficiency per unit, making it more suitable for quality-focused portfolios. Meanwhile, Sandhar stands out in raw growth with strong variances in sales and profits. In terms of absolute size, the scale lean in favor of Sandhar, but the dominant market cap value of Fiem is a reflection of its strong brand.

 

Future Trajectory

Looking forward, Fiem Industries targets increasing EV lighting penetration and export market diversification for further growth of 15% – 20% in the mid-term. Sandhar targets leveraging the aerospace segment, as well as CV cycles, to achieve 15% expansion.

Auto sector has tailwinds such as increasing vehicle dispatch figures and localization orders, but input prices varying is still of concern. 

Investor View 

Return-seeking investors may favor Sandhar, supported by strong Q2 earnings momentum, rising volumes, reasonable valuation multiples, and scalable growth prospects. In contrast, risk-averse investors could prefer Fiem Industries, given its sector-leading ROCE, predictable business model, and premium positioning within the auto ancillary space.

Frequently Asked Questions

What causes the fiem industries share price to increase in 2026?

Fiem Industries share price appreciated by over 50% from its early 2025 levels and reached around Rs. 2145.6 fueled by its Q2FY26 growth in sales by 16.82%. The company possesses an attractive ROCE of 27.8%.

 

 How does NSEFiemind perform compared with sector trends?

Fiem Industries share price has reported steady revenue growth in Q2FY26, i.e., Rs.715.39 Cr, with a rise of 26.91 percent compared to an increase of 8-10 percent for auto ancillaries.

 

What is the Sandhar technologies share price target in 2026?

Sandhar Technologies share price target at Rs. 730 to Rs. 950 end-of-year with a jump of sales by 29.08% to Rs. 1270.37 Cr and its corresponding profit surge by 83.36%. 

 

What kind of index includes nse sandhar and fiem industries ltd share?

The NSE Sandhar and fiem industries ltd share in S&P BSE SmallCap and S&P BSE MidSmallCap indices provide small caps with good growth in auto ancillary stocks.

 

What is fiemind share price target with latest news? 

fiem industries ltd share Target price in FY-2026 is expected to be in range of 2700-3400 as the sales in first-half FY2026 have grown by 15%. Profit after tax is also growing while capex is being spent on LED segment.

 

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