Automotive Axles (505010) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue from operations was ₹6,625.55 million and profit for the period was ₹601.35 million, both higher YoY; H1 revenue was ₹11,793.76 million and profit was ₹1,057.31 million.

• Demand and recently added capacity supported strong deliveries; management expects demand to remain strong for at least the next couple of quarters, while flagging supply constraints.

• The statutory auditor’s limited review found nothing indicating material misstatement or non-compliance with required disclosures.

Financial highlights

• Q2 total income was ₹6,709.56 million vs ₹5,271.67 million YoY; PBT was ₹807.10 million vs ₹612.80 million.

• Q2 EBITDA was ₹910 million at 13.7%; EBIT was ₹812 million at 12.3%.

• H1 revenue was ₹11,793.76 million vs ₹9,511.36 million; total income was ₹11,981.23 million vs ₹9,691.73 million.

• H1 EBITDA was ₹1,613 million at 13.7%, versus 12% a year earlier; PAT margin rose to 9% from 7.5%.

• Q2 EPS was ₹39.79 vs ₹30.17 YoY; H1 EPS was ₹69.96 vs ₹47.43.

Outlook and guidance

• Management expects demand to hold for at least the next couple of quarters and hopes H2 will be as strong as H1; no formal forward guidance was given.

• Similar margin levels are expected if market conditions remain consistent; margins depend on demand, product mix and conversion efficiency.

• The INR 5,000 crore revenue ambition by 2030 is being assessed against product, technology and capacity investment needs, subject to board alignment.