Automotive Axles (505010) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw strong momentum after a slow start, with most of the order board converted and robust demand from OEMs, especially post-GST rate cuts.

• 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.

• Revenue for the quarter was INR 5,622.94 million, with total income at INR 570 crore; EBITDA margin stood at 12.9%.

• PAT for the quarter was INR 388.06 million, or 7% of revenue.

Financial highlights

• Revenue from operations for Q3 FY26 was INR 5,622.94 million, up from INR 4,617.60 million in Q2 FY26 and INR 5,307.44 million in Q3 FY25.

• EBITDA for Q3 was INR 72.5 crore, up 26% sequentially and 14% year-over-year.

• Profit before tax for Q3 FY26 was INR 512.14 million (9.11% margin), down from 10.4% sequentially due to the exceptional wage item.

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

• Other expenses increased due to a new technical fee arrangement linked to revenue growth.

Outlook and guidance

• Q4 is expected to be a strong quarter, with industry volume growth anticipated at 5%-10% year-over-year.

• Capacity utilization is around 80%, with plans to add capacity by Q3 FY27 to support up to 500,000 units in the M&HCV segment.

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

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