Automotive Axles (505010) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue was INR 562 crore (₹5,622.94 million), with total income at INR 570 crore and EBITDA of INR 72.5 crore (12.9% margin).

• Sequential revenue growth was 21%, with EBITDA margin up 52 bps quarter-over-quarter.

• Year-over-year, revenue grew 6% and EBITDA 14%, with margin up 93 bps.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on February 4, 2026.

• Interim CFO appointed and several changes in senior management personnel effective February 4, 2026.

Financial highlights

• EBITDA for the quarter was INR 72.5 crore (12.9% margin), up 26% sequentially.

• Profit before tax was INR 51 crore (9.11% margin), impacted by a one-time wage code expense.

• Net profit for Q3 FY26 was ₹388.06 million, compared to ₹359.54 million in Q2 FY26 and ₹395.81 million in Q3 FY25.

• EPS for Q3 FY26 stood at ₹25.68, up from ₹23.79 in Q2 FY26.

• Exceptional item of INR 12 crore (₹119.87 million) recognized due to changes in Indian labor laws impacting employee benefit liabilities.

Outlook and guidance

• Q4 is expected to be a strong quarter, with industry volumes projected to grow 5%-10% year-over-year.

• Management expects to keep pace with industry growth, barring segments where the company is not present.

• Capacity expansions are underway, with readiness for higher demand by Q3 FY27.

• Company continues to monitor the impact of new labor codes and will evaluate further effects on employee benefit liabilities in future quarters.