CIE Automotive India (532756) Q2 2025 earnings summary

Executive summary

• Consolidated Q2 CY2025 sales rose 4% year-over-year to INR 23 billion, driven by strong Indian operations, while European sales declined 1% year-over-year to INR 8.3 billion.

• H1 CY2025 consolidated sales were INR 44.9 billion, down 1% year-over-year, with Indian growth offset by a significant drop in European sales.

• Margins were pressured by one-off restructuring costs in Europe and the absence of prior period subsidies in India.

• Management expects H2 in India to outperform H1, driven by a good monsoon and festive season, while Europe is expected to remain weak but stable.

• Standalone and consolidated unaudited financial results for the quarter and half year ended 30 June 2025 were approved and released, with no material misstatements.

Financial highlights

• Q2 CY2025 consolidated EBITDA was INR 3.6 billion (15.7% margin), EBIT INR 2.7 billion (11.9%), EBT INR 2.7 billion (11.8%).

• H1 CY2025 consolidated PAT was INR 4,099 million, down 8% year-over-year; PAT margin at 9.1%.

• Standalone India Q2 CY2025 revenue grew 5% year-over-year; PAT at INR 1,267.83 million.

• Consolidated revenue from operations for Q2 2025 was INR 23,690.04 million, with half-year revenue at INR 46,416.32 million.

• Operating cash flows were 76% of consolidated EBITDA; CapEx for H1 was INR 0.7 billion, mainly in India.

Outlook and guidance

• H2 in India expected to be stronger due to seasonal factors and ramp-up of delayed order book.

• European market to remain weak for next two quarters, with possible recovery in 2026; management remains cautious.

• CapEx for CY2025 expected to reach 5% of revenue, with increased spending in H2 for new projects.

• Margins in India expected to improve slightly; Europe to stabilize at 14%-15% EBITDA margin post-restructuring.

• Industry forecasts: India light vehicles to grow 5% in 2025, tractors and MHCVs to decline short-term but grow long-term.