Automotive Axles (505010) Q1 26/27 earnings summary

Executive summary

• Achieved one of the highest quarterly EBITDA margins in company history despite a moderate market environment, with strong operational execution and favorable product mix contributing to results.

• Q1 FY27 saw robust financial performance, supported by market recovery, new product launches, and effective cost management.

• Unaudited financial results for the quarter ended June 30, 2026, were approved by the Board on August 5, 2026.

• Independent auditor's review found no material misstatements in the financial statements.

Financial highlights

• Revenue from operations for Q1 FY27 was ₹5,168.21 million, with other income at ₹103 million.

• EBITDA reached ₹702 million (13.6%), up from 12.4% in the previous quarter and 9.7% year-over-year.

• Net profit for Q1 FY27 stood at ₹455.96 million (8.7% margin), with EPS at ₹30.17, the highest Q1 EPS in four years.

• Profit before tax for Q1 FY27 was ₹612.80 million, compared to ₹481.35 million in Q1 FY26.

• Exports accounted for 13% of revenue, above the typical 8%-12% range.

Outlook and guidance

• Industry volumes for FY27 are expected to be 5%-10% lower than last year, with best-case scenario matching last year’s volumes.

• Q2 expected to be steady, with demand increasing in Q3 and a peak in Q4, barring monsoon and geopolitical headwinds.

• Margins are targeted in the 7.5%-8.5% PAT range for the next few quarters, with potential for improvement by 2030 due to scale and product mix.

• The company continues to monitor the impact of new Labour Codes and will evaluate further effects on employee benefit liabilities in future quarters.