India · Delayed Price · Currency is INR Automotive Axles Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw strong revenue and profit growth, driven by robust commercial vehicle demand, new product launches, and high capacity utilization. Ongoing CapEx will expand capacity by December 2026, with exports and technology upgrades as strategic priorities.
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Q3 FY26 delivered strong sequential growth with improved margins, driven by robust OEM demand and new product traction. Export and non-M&HCV segments declined, but core market share remains intact, and capacity expansion is underway to support future growth.
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Q2 FY26 revenue declined 6% sequentially to INR 470 crores, but EBITDA margin improved to 12.4% due to one-time gains and favorable product mix. Despite export and product mix headwinds, outlook for H2 is positive with expectations of margin improvement as volumes recover.
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Revenue and margins remained stable in Q1 FY26, with EBITDA and PAT margins improving year-over-year. The new business model is expected to yield marginal margin gains, with normalization of export revenue and expenses anticipated from Q2. CapEx of INR 120 crores is underway for automation and capacity upgrades.
Fiscal Year 2025
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Despite a soft market and lower revenue, margins and cash generation improved, driven by product mix, cost initiatives, and direct OEM sales. FY26 is expected to be flat with marginal EBITDA growth, while significant upside is anticipated as export markets recover.
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Q3 FY25 saw sequential revenue growth and margin improvement despite a soft market. Management targets doubling revenue by 2029-2030 through product launches, export, and aftermarket expansion, with sustainable margins and ongoing modernization investments.
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Q2 FY25 revenue declined 15% year-over-year, but operational efficiencies supported stable margins. Market share in Ashok Leyland remains strong, with new product launches and automation investments planned. Industry growth of 15-20% is expected over the next three to four years.
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Q1 FY25 revenue was INR 498 crore with a 7.4% sequential decline, but margins remained stable. New bus axle and ICV brake launches are set for Q3/Q4 FY25, targeting higher market share. INR 100 crore CapEx is planned, and the company is focused on product mix and cost control.