CIE Automotive India (532756) Q2 2026 earnings summary

Executive summary

• Q2 CY 2026 consolidated sales rose 11% year-on-year to INR 25,432 million, with EBITDA up 17% and PAT up 18% for H1 CY 2026, driven by robust growth in India and currency tailwinds in Europe.

• Indian operations saw 13% sales growth in Q2 and 14% in H1, though margins were slightly lower due to cost inflation and portfolio restructuring.

• European operations delivered 7% sales growth in Q2 (INR terms), with EBITDA margin recovery to 15.9% and strong profit growth, despite a weak underlying market.

• Unaudited standalone and consolidated financial results for Q2 and H1 2026 were approved by the Board, with no material misstatements identified.

Financial highlights

• Q2 CY 2026 India sales: INR 16,549 million (+13% YoY); EBITDA margin: 16.7% (down from 17.5% YoY).

• Q2 CY 2026 Europe sales: INR 8,883 million (+7% YoY); EBITDA margin: 15.9% (up from 12.5% YoY).

• H1 CY 2026 consolidated sales: INR 50,843 million (+13% YoY); EBITDA margin: 16.7% (vs 16.3% YoY); PAT: INR 4,825.16 million (+18% YoY).

• Return on net assets at H1 CY 2026: 19.4% (vs 18.4% at end CY 2025); net financial debt: INR -14,161 million (net cash position).

• Final dividend of INR 7 per share for FY2025 paid in Q2 CY2026.

Outlook and guidance

• Management expects continued growth, targeting 12%-15%, but notes a likely market slowdown in the second half as GST cut effects fade and monsoon impacts rural demand.

• New orders of INR 5 billion per year secured in H1, with capacity expansions planned across all verticals.

• Margins are expected to recover as countermeasures to cost inflation take effect in coming quarters.

• The company is pursuing a merger of CIE Aluminium Casting India Limited, pending regulatory approvals.

• Market signals remain optimistic for the near future, but global geopolitical tensions create uncertainty.