Automotive Axles (505010) Q4 25/26 earnings summary

Executive summary

• Closed FY 2026 with strong revenue and profitability growth, driven by robust demand in the commercial vehicle segment above 7.5 tons and successful ramp-up of new product launches.

• Audited financial results for the quarter and year ended March 31, 2026, were approved, with an unmodified audit opinion issued by the statutory auditors.

• Q4 FY 2026 saw record industry volumes, with OEMs and the company achieving all-time high production and delivery numbers.

• A final dividend of Rs. 32 per share (320%) was recommended for FY 2025-26, subject to shareholder approval.

• The 45th Annual General Meeting is scheduled for August 12, 2026, with a record date of August 5, 2026, for dividend eligibility.

Financial highlights

• Q4 FY 2026 revenue was INR 6,643 million, up 18% sequentially and 18.7% year-over-year.

• Full-year FY 2026 revenue reached INR 21,777 million, a 5% increase year-over-year; total income including other income was INR 22,099 million.

• Q4 EBITDA stood at INR 825 million (12.4% margin), with PAT at INR 539 million (8% margin), maintaining profitability levels year-over-year.

• Full-year EBITDA was INR 2,692 million (12.4% margin); after adjusting for a one-time INR 120 million exceptional item, adjusted EBITDA margin was 10.6%.

• Full-year PAT was INR 1,643 million (7% margin); PBT stood at INR 2,198 million (10% margin).

• EPS for the year was Rs. 108.77, up from Rs. 102.92 year-over-year.

• Total comprehensive income for FY 2025-26 was Rs. 1,629.40 million, compared to Rs. 1,543.44 million last year.

Outlook and guidance

• Industry demand for commercial vehicles is expected to remain above 400,000 units annually, with continued growth anticipated in FY 2027.

• Export growth is a key strategic lever, with investments aligned to support both domestic and global supply chain opportunities.

• Capacity expansion is underway, with phase I to be completed by December 2026 and further CapEx planned based on market needs.

• The company will continue to monitor the impact of new labor codes and adjust accounting as required by future regulatory developments.