Company: SEDEMAC MECHATRONICS
Sector: Automobile OEM supplier
Basic Details
• Market Cap: ₹8130 crores
• Issue Price: ₹1352
• Current Price: ₹1841 (as of 1 May 2026)
• Listing Date: 11 Mar 26
Financial Highlights
| 9M FY26 | FY25 | FY24 | FY23 | |
|---|---|---|---|---|
| Profit | 72 | 47 | 6 | 9 |
| Revenue | 775 | 662 | 535 | 429 |
| % revenue outside India | 8.64% | 5.65% | 2.37% | 4.05% |
| Cost of Raw Material Consumed | 492 | 414 | 366 | 303 |
| EBIDTA | 161 | 125 | 83 | 54 |
| EBIDTA % | 20.77% | 18.88% | 15.51% | 12.59% |
| Capex | 102 | 91 | 75 | 54 |
| Total Borrowings | 47 | 49 | 150 | 109 |
| Inventory | 147 | 135 | 117 | 90 |
| Trade Receivables | 143 | 43 | 27 | 15 |
| Trade Payables | 142 | 85 | 76 | 66 |
| Inventory Turnover | ||||
| Ratio | 3.36 | 3.25 | 3.49 | 3.35 |
Business Overview
SEDEMAC Mechatronics was founded in 2007 by Shashikanth Suryanarayanan along with his students, incubated at SINE IIT Bombay.
The company name—SEDEMAC (SEparating DEcision Making from ACtuation)—captures its core philosophy: building the “electronic brain” for engines and motors.
SEDEMAC is a deep-tech control systems company designing critical electronic control units (ECUs).
Within critical-to-the-application components, SEDEMAC focuses on control-intensive components that are application specific and manage complex systems in real time. Starting off as a lab-based enterprise out of Indian Institute of Technology (IIT) Bombay in 2007, the company has evolved as renowned player in the control technology space.
Promoters:
- Prof. Shashikanth Suryanarayanan, Amit Dixit, Manish Sharma, and Anaykumar Joshi
- All of them directly or indirectly related to IIT Mumbai and first gen enterpreneurs
Products
In traditional vehicles, two separate components were used—a starter motor to start the engine and an alternator/magneto to charge the battery while running. The Integrated Starter Generator (ISG) replaces both with a single unit that first acts as a motor to start the engine and then switches to a generator to charge the battery. The ISG controller is critical because if it fails, the vehicle won’t start or charge, making it unusable.
Conventional ISG systems use Hall sensors to detect rotor position, but these often fail due to exposure to heat, dust, and oil. SEDEMAC’s key innovation is sensor-less commutation (SLC), which eliminates sensors by using electrical signals to determine rotor position, improving reliability and reducing cost.
| Aspect | Details |
|---|---|
| Key Driver | BS VI emission norms (April 2020) & fuel efficiency mandates |
| Industry Impact | 100% EFI adoption in Indian 2W/3W industry; growing adoption in gensets |
| EFI Benefits | Reliable starts in all conditions, better fuel efficiency, no seasonal adjustments needed |
| ECU Function | Real-time monitoring, controls fuel injection quantity & timing, manages ignition |
| Additional Role | OBD compliance for easier debugging & servicing |
| Criticality | Engine won’t function if ECU fails — vehicle becomes immobile |
| Key Suppliers | SEDEMAC, Astemo, Bosch, Vitesco, Varroc-Dellorto, Marelli, Mikuni |
| Category | Details |
|---|---|
| Concept | ISG + EFI Integrated ECU combines starter-generator control and fuel injection control into a single unit |
| Why Integration Matters | Reduces cost, lowers component count, simplifies system management, and saves space for OEMs |
| Industry Trend | Similar integrations seen in VCU + MCU and integrated e-axles |
| Key Advantage | Since EFI is already standard in 2W/3W, adding ISG into the same unit enables both features at lower incremental cost |
| Impact on Adoption | Makes ISG more attractive and accelerates adoption among OEMs |
| SEDEMAC Track Record | 9.2+ million installations of sensorless ISG and ISG+EFI ECUs (FY18 to Q3 FY26) |
| Customer Position | Key supplier to major OEMs in India |
| Market Position | Very few global players offer integrated ISG+EFI solutions |
| Competitive Edge | Early mover advantage with strong differentiation in integration capability |
4. Voltage Regulator Rectifier (VRR)
| Category | Details |
|---|---|
| Function | Converts AC to DC (rectification) and stabilizes voltage (regulation) for safe battery charging |
| Purpose | Ensures battery receives consistent and safe electrical output from the magneto |
| Types | 1-phase and 3-phase (based on magneto configuration) |
| Key Suppliers | SEDEMAC, Flash, Napino, Shindengen, INEL |
5. Controllers for engine powered Commercial Vehicles (CVs) - After treatment Control Module (ACM):
ACM is used in diesel CVs to control aftertreatment systems; mandated under BS-VI norms to reduce harmful emissions
6. Control products for Electric Vehicles (EVs) -Motor Control Unit (MCU)
| Category | Details |
|---|---|
| Function | MCU controls EV motor operation—managing speed, torque, direction, and energy flow while monitoring parameters like voltage, current, and temperature |
| Applications & Architecture | Used across e-bikes, e2W, e3W, eLCVs, buses; similar architecture to ISG (inverter-based) and also used for auxiliary systems |
| Industry Trend & Players | Moving from sensor-based to sensor-less systems; key players include SEDEMAC, Sterling-GTake, Bosch, Vitesco, Varroc |
7. Integrated MCU+VCU for e-bikes
company expects a value growth of 44 to 46% (domestic) in this segment from FY25 to FY30
8. Motors for EVs
- Supply chain risks and high costs associated with rare earth elements are driving the development of rare earth magnet-free motors.
- Alternative technologies include ferrite-based permanent magnets and motor designs that eliminate the need for magnets entirely.
- This strategic shift aims to reduce import dependency, lower costs, and improve sustainability.
- Key suppliers include Bosch, Nidec, Sona Comstar, Lucas TVS, Bafang, and Yamaha, SEDEMAC
9. Motor Control Units (MCUs) for Powertools
MCUs for Powertools like drilling machine, chain saw etc
10. Control Units for Generators
Product wise competitors
| Product | Compitition |
|---|---|
| EFI ECU | Astemo, Bosch, Vitesco, Varroc-Dellorto, Marelli, and Mikuni,amongst others |
| ISG | Shindengen and Denso. |
| ISG+EFI controllers | Shindengen and Astemo |
| Genset Controllers | DeepSea, SmartGen, ComAp, Datakom, and Fortrust. |
| Motor Control Units for small electric vehicles space | Sterling-GTake, Bosch, Vitesco, and Varroc. |
Raw Material for the products:
- semiconductors, SMD components, and PCBs (Printed Circuit Boards)
- Of the total cost of raw material consumed around 75% of the cost is of Semiconductors, any material price fluctuations in semiconductors may affect margin of the company
| Manufacturing Plants | |||
|---|---|---|---|
| MF1 | Chakan, Pune, India | 40,000 Sq Ft | Manufacturing of all Genset Controllers. ISG ECUs. EFI ECUs, ISG+EFI ECUs, MCUs, |
| MF2 | Wadgaon Pune, India | 8,000 Sq Ft | Manufacturing of all TCIs, VRRS. Flashers |
| MF3 | Chakan, Pune, India | 80,000 Sq Ft (Under Construction) | Manufacturing of all controllers |
| MF4 | Chakan, Pune, India | 9,300 Sq Ft (Manufacturing line set-up under process. |
Manufacturing electric motors |
One can notice that the new plant which is coming up is double the capacity of current larger plant. This is going to boost up production capacity significantly.
Concerns:
- Majority of revenue coming from TVS
| TVS Revenue contribution | |||
|---|---|---|---|
| 9M FY26 | FY25 | FY24 | FY23 |
| 75.46% | 80.46 | 83.46 | 79.05% |
| Mobility Revenue contribution | |||
| 84.63% | 85.69% | 85.64% | 80.37% |
- There are lot of products in R&D phase and work is in pipeline. Success of the company depends on how widely products get accepted by the market.
- In their DRHP company has defined product maturity based on following stages and slotted each product in their respective basket:
- Product Stages
- Technology Proposition Stage
- Proof-of-Concept Stage:
- Commercial Business Win Stage
- Initial Introduction Stage
- Early Growth Stage
- Broader Market Adoption Stage
- Sustaining Industry Position (till the technology stays relevant
Valuation
- This is a tricky part here, at current CMP company is trading at 120+PE.
- Company has mentioned Bosch Limited, ZF Commercial Vehicle, Sona BLW Precision, Schaeffler India as its listed peers. All of them trades in between P/E of 50 to 70.
- Real story here would be earning explosion if the demand for the its product continue to be as is what has been see in first 9 months of fiscal year.
Positives:
-
Deep tech niche player with offerings which are unique in the market
-
First gen entrepreneurs with IIT background and tech stack which has been monetized
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Lot of new capacity coming on stream shortly which can rapidly scale up production of existing components.
-
Large EV adoption in 2W/3W will greatly benefit the company
-
They are setting up plant dedicated to rare earth free motor production, this can be a good optionality provided they able to get good demand for these motors.
Disclosures:
-
Total holding around 5% of my PF. Bought between 1600 to 1700.
-
I am not SEBI registered analyst, this is not a recommendation to buy or sell any of the stock I mentioned
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Disclaimer
Small and midcap stocks and recent IPO stocks carry higher risks due to their smaller size, limited operating history. This analysis is for educational purposes only and should not be considered as investment advice. Always conduct your own research or consult with sebi registered financial advisors before making investment decisions.