IPO-Bound SEDEMAC’s FY25 Profit Jumps 8X To INR 47 Cr

SUMMARY

SEDEMAC Mechatronics reported about 8X rise in its consolidated net profit to INR 47 Cr in FY25 from INR 5.9 Cr in the previous fiscal year

Operating revenue grew 24% to INR 658.3 Cr from INR 530.6 Cr in FY24. Including other income of INR 4.2 Cr, total income stood at INR 662.5 Cr

Meanwhile, its total expenditure increased nearly 13% to INR 594.8 Cr in FY25 from INR 527 Cr in the previous year

IPO-bound deeptech startup SEDEMAC Mechatronics reported about 8X rise in its consolidated net profit to INR 47 Cr in FY25 from INR 5.9 Cr in the previous fiscal year.

Operating revenue grew 24% to INR 658.3 Cr from INR 530.6 Cr in FY24. Including other income of INR 4.2 Cr, total income stood at INR 662.5 Cr.

SEDEMAC’s EBITDA jumped 51% YoY to INR 125.2 Cr in FY25, while EBITDA margin expanded 300 basis points to 19% from 16% in FY24.

Backed by A91 Partners and Xponentia Capital, SEDEMAC recently filed draft papers with SEBI for an IPO that will solely comprise an offer for sale, with no fresh funds being raised. Investors and promoters plan to sell about 80.4 lakh shares. A91 Partners will offload 24.1 lakh shares. 360 ONE Asset, Xponentia, and Mace are among the other investors who will sell their shares via the OFS.

A91 Partners holds the highest stake in the startup at 18.16% pre-IPO, while Xponentia has a 11.06% stake in it.

How SEDEMAC’s Engineering Is Powering Global OEMs

Founded in 2007 by IIT Bombay professor Shashikanth Suryanarayanan and three students – Amit Dixit, Manish Sharma, and Pushkaraj Panse, SEDEMAC is a Pune-based technology startup that builds the brains behind engines and machines. It designs and manufactures electronic control units (ECUs) that help engines start, run, and perform efficiently.

These ECUs are small but crucial devices and without them, the engine or motor would not function. The startup’s products are used in vehicles, generators, and power tools made by leading manufacturers in India and overseas.

SEDEMAC has two key business divisions – mobility and industrial. The mobility segment, which brings in nearly 86% of SEDEMAC’s revenue, supplies control systems to the automotive industry. Its products include starter generator controllers, fuel injection units, and motor control systems for two-wheelers, three-wheelers, and electric vehicles.

SEDEMAC says it holds about a 30% share in India’s market for starter-generator controllers and has shipped over 7.5 Mn such units since 2018. Its “SmartIgn” technology, which removes the need for a throttle position sensor, has been installed in over 43 Mn vehicles.

Meanwhile, the industrial division focuses on generator and power tool controllers. SEDEMAC’s products are used to control both conventional and fuel-injected gensets, helping improve their fuel efficiency and reliability.

Since launching its first generator controller in 2014, the company claims to have sold close to a million units and now holds around 14% of the global market for genset control systems. It also supplies motor control units for battery-powered power tools.

The startup’s strength lies in its deep focus on research and development. SEDEMAC’s R&D centre in Pune is approved by the Centre’s Department of Scientific and Industrial Research and works on engine, motor, and transmission control systems, along with solutions for EVs.

Over the last three years, the startup claims to have spent around INR 44 Cr to INR 50 Cr annually on R&D, which it sees as a key to maintaining its technological edge. Many of SEDEMAC’s innovations, such as sensorless motor control and integrated starter generators, have been developed in-house.

Notably, SEDEMAC runs two manufacturing plants in Pune, at Chakan and Dhayari, along with its main R&D centre in the same city.

Where Did SEDEMAC Spend?

The startup’s total expenditure increased nearly 13% to INR 594.8 Cr in FY25 from INR 527 Cr in the previous year.

Employee Benefit Expenses: The spending on employees, which includes salaries, PF contributions, gratuity, among others, soared 44% to INR 61.4 Cr from INR 42.7 Cr in FY24.

Labour Costs: The spending under the head increased 21% to INR 20.5 Cr from INR 17 Cr in FY24.

Cost Of Materials: SEDEMAC spent INR 410.7 Cr under the head, up 13% from INR 362.9 Cr in FY24.

In Q1 FY26, SEDEMAC posted an operating revenue of INR 217.3 Cr and a net profit of INR 17 Cr.