Automotive Axles (505010) Q1 25/26 earnings summary

Executive summary

• Revenue for Q1 FY26 was approximately INR 4,893.76 million, flat year-over-year, with a 1% decline in revenue from operations compared to the same quarter last year.

• EBITDA margin improved to 11.7% from 11.2% year-over-year, and PAT margin rose to 7.3% from 6.9% in Q1 FY25.

• Unaudited financial results for the quarter ended June 30, 2025, were approved by the Board on August 5, 2025.

• The review report from statutory auditors found no material misstatements in the financial statements.

• Strong working capital and cash flow performance were noted despite a soft market environment.

Financial highlights

• Revenue from operations for Q1 FY26 was ₹4,893.76 million, down from ₹5,596.43 million in the previous quarter and slightly down from ₹4,924.67 million year-over-year.

• EBITDA margin increased by 0.5 percentage points to 11.7%.

• PAT margin improved by 0.4 percentage points to 7.3%.

• Net profit for the quarter was ₹354.72 million, down from ₹459.27 million in the previous quarter but up from ₹336.54 million year-over-year.

• Gross margin improvement attributed to favorable product mix, new product launches, and ongoing cost reduction and automation initiatives.

Outlook and guidance

• Q2 is expected to be softer due to inventory build-up at OEMs and above-average monsoon, but recovery is anticipated in Q3 and Q4 as government infrastructure projects ramp up.

• Management expects the market to remain around 400,000 units, with a possible 4% dip year-over-year.

• Margin improvement from the new business model is expected to become more visible by Q3 FY26.