India · Delayed Price · Currency is INR Automotive Axles Earnings Call Transcripts
Fiscal Year 2026
-
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.
-
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.
-
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
-
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.
-
Q3 FY25 saw improved margins despite a soft market, with revenue up 7.2% sequentially but flat year-over-year. The company targets doubling revenue by 2029-30 through new products, exports, and aftermarket growth, supported by a INR 300 crore CapEx plan.
-
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.
-
Q1 FY25 revenue declined 7.4% sequentially to INR 498 crore, with EBITDA margin at 13.2%. New product launches in bus and construction segments are set for Q3/Q4, supported by INR 100 crore CapEx, while the MHCV market is expected to remain flat to slightly down in FY25.