Automotive Axles (505010) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 faced headwinds from new M&HCV legislation and tariffs, but margins were protected and operational performance remained resilient.

• Domestic consumption and agriculture sector supported demand, with manufacturing showing strong growth in August and September.

• Board approved unaudited financial results for the quarter and half year ended September 30, 2025.

• New product launches included a 15-meter bus axle and axles for electric vehicle applications, with recognition for aftermarket delivery performance.

• CFO Ranganathan Sankaran announced early superannuation, effective November 22, 2025.

Financial highlights

• Q2 FY26 revenue was ₹4,617.60 million (INR 470 crores), down 6% sequentially and from ₹4,946.84 million in Q2 FY25.

• H1 FY26 revenue was ₹9,511.36 million (INR 969 crores), down 3% year-over-year.

• Q2 EBITDA margin reached 12.4%, up from 11.7% in the previous quarter and 11.4% last year.

• Net profit for Q2 FY26 was ₹359.54 million, nearly flat year-over-year.

• EPS for Q2 FY26 stood at ₹23.79, nearly unchanged from last year.

Key financial ratios and metrics

• Gross margin remained stable with cost of raw materials at ₹3,002.50 million for Q2 FY26.

• Total equity as of September 30, 2025, was ₹10,065.23 million.

• Cash and cash equivalents increased to ₹126.61 million as of September 30, 2025.

• Net cash from operating activities for H1 FY26 was ₹803.40 million.

• Fixed cost absorption and product mix are key factors influencing EBITDA margin.