Ladies and gentlemen, good day and welcome to ASK Automotive Q2 and H1 FY 2027 post-results earnings conference call hosted by Adfactors PR. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rushabh Shah from Adfactors PR. Thank you, and over to you, sir.
Thank you, Palak. A very good evening to everyone, and welcome to the Q2 and H1 FY 2027 earnings call of ASK Automotive. From the senior management, we have with us Mr. Kuldip Singh Rathee, Chairman and Managing Director, Mr. Prashant Rathee, Joint Managing Director, Mr. Aman Rathee, Joint Managing Director, Mr. Naresh Kumar, Chief Financial Officer, and Mr. Manoj Sharma, Chief General Manager, Investor Relations. Before we begin the earnings call, I would like to mention that some of the statements made during today's call may be forward-looking in nature and hence may involve risks and uncertainties, including those related to future financials and operating performance of the company. Please bear with us if there is a call drop during the course of the conference call. We would ensure that the call is reconnected at the earliest.
I would now like to hand over the call to Mr. Kuldip Singh Rathee, Chairman and Managing Director, for his opening remarks. Thank you, and over to you, sir.
Good evening, ladies and gentlemen. It is my great pleasure to welcome you all to our Q2 and H1 FY 2027 earnings conference call. I hope you have had the opportunity to review the detailed presentation submitted to the exchanges and available on our website. FY 2027 has begun on a resilient note for the Indian economy, with GDP growing 7.8% in the first quarter, ahead of expectations, supported by strong investment and steady consumption. The GST 2.0 reforms have helped improve affordability across vehicle segments. The Indian automobile sector delivered a strong first half of FY 2027, with every segment recording its highest-ever second-quarter domestic sales. Now, let me begin by sharing a quick overview of the broader industry as reported by SIAM. In H1 FY 2027, overall vehicle production across all segments registered a robust year-on-year growth of 20.3%.
The two-wheeler segment, which is most relevant to us, recorded domestic production of 153.7 lakh units in H1 FY 2027, up 19.5% from 128.6 lakh units in H1 FY 2026. in Q2 alone, production touched 81 lakh units as compared to 69.5 lakh units in the same quarter last year. The festive season is underway, consumer sentiment is improving, and we expect further support from the Eighth Pay Commission, new model launches, and a gradual replacement cycle. Moving on to business updates. I am delighted to share with you that we had a strong performance in the second quarter and the first half in both revenue and profitability. This is the 12th consecutive quarter of robust performance of us since listing of the company. Happy to share that we have achieved highest-ever quarterly revenue, EBITDA, and PAT.
During Q2 FY 2027, we delivered strong performance in business and recorded consolidated revenue growth of 47.5%.
When we see excluding pass-through impact of significant increase in alloy prices on revenue, which is 23%, and Wheel Assembly business strategic reduction, which is 5%, overall net revenue has grown by 29.5% on year-on-year basis. We continue to outperform the two-wheeler industry, achieving net revenue growth of 29.5% compared with industry vehicle production growth of 16.5%. Achieved EBITDA of INR 185 with 30% year-on-year growth. EBITDA margin at 11.8%. However, EBITDA margin percentage appears lower due to pass-through alloy prices. Achieved PAT of INR 102 with 27.3% year-on-year growth. With strong performance, our Earnings Per Share has increased to INR 5.15 per share against INR 4.05 per share in the last year same period. Our all three product segments performed well in terms of revenue growth.
Revenue from Advanced Braking Systems grew by 46% year- on- year, while Aluminium Lightweighting Precision Solutions and Safety Control Cables recorded revenue growth of 69% and 33% respectively. Export revenue rose by 133.3% year- on- year to INR 70 compared with INR 30 in the corresponding period last year. As a result, in first half of FY 2027, we delivered strong performance in business and recorded consolidated revenue growth of 49.6%. When we exclude the pass-through impact of significant increase in alloy prices on revenue, which is 27.1%, and Wheel Assembly business strategy reduction, which is 5.1%, overall net revenue has grown by 27.6% on year-on-year basis. We achieved EBITDA of INR 348 with 31.3% year-on-year growth, EBITDA margin at 11.9%. However, EBITDA percentage lower due to pass-through alloy prices. Achieved PAT of INR 187 with 28% year-on-year growth.
PAT per share increased to INR 9.47 against INR 7.40 in the last year in the same period, up 28% year- on- year. Our all three product segments performed well in H1 FY 2027 in terms of revenue growth. Revenue from Advanced Braking Systems grew by 47% year-o n- year, while Aluminium Lightweighting Precision Solutions and Safety Control Cables recorded revenue growth of 72% and 27% respectively. Export revenues rose by 74% year- on- year to INR 109 compared with INR 63 in the corresponding period last year. This reflects the result of our continued focus on expanding value-added businesses, improving utilization of production capacities, and bringing cost efficiencies. We continue to outperform the two-wheeler industry, achieving net revenue growth of 27.6% compared with industry vehicle production growth of 19.5%.
Our aim is to continue on this growth path on a sustainable basis with clear focus on the bottom line to enhance the shareholders' wealth. Volatility in alloy prices may affect margin percentages due to the denominator effect. However, in absolute terms, our EBITDA growth is in line with the net revenue growth. There are certain key updates which I would like to highlight. Regular supply of high-pressure die-casted HPDC alloy wheels commenced on 3rd August 2026 to our leading Japanese customer under technical collaboration with Kyushu Yanagawa Japan. First time HPDC alloy wheels introduced in two-wheelers in India. Our second captive solar plant of 11.55 MW in Bikaner, Rajasthan, operationalized in October 2026 as promised earlier. This reflects ASK's special focus on green energy.
In spite of the current geopolitical situation, we are confident that we will continue to grow in high teens in FY 2027 despite post-GST 2.0 higher base in Q3 and Q4 of FY 2026. Thank you very much for your patient hearing. With this, we leave the floor open for question and answers.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. The first question is from the line of Raghunandhan NL from Nuvama Research. Please proceed with your question.
Congratulations to the entire team on the stellar performance across all categories. Sir, just a clarification to start with. When you indicate that high single-digit growth, I mean, high teens growth for the full year, you are looking at the revenue excluding the pass-through alloy impact. Would that be right?
Yes, yes. Net revenue. We always mention very transparently what is the net revenue growth, Mr. Raghu.
Thank you, sir. Export revenue is at INR 100 in H1. Would you see similar run rate for H2? Also, has there been any new order wins in export either in auto or non-auto categories?
See, we are very, very bullish on even in H2, but only thing is any analysts, they scare us by telling that H2 you will see much lesser growth because of the GST 2.0 impact, which now there was a clear upside in the H1. But since last, at the end of H1, September, GST 2.0 reduction came. So the analysts feel the H2 will be less, though, however, we are very confident that all our customers are also very bullish on H2.
Yes, sir. Thanks for that. I was asking on exports, sir, whether in exports have you seen any new order wins? For full year, do you think exports revenue can cross INR 200 of revenue?
Last time, we had given a guidance that we will be from INR 145 , we will touch INR 180 , and we are very confident we will be crossing that.
Got it, sir. Can you provide an update on the supply, like on alloy wheels, how is the ramp-up expected for Japanese and India OEM? Also, if you can update on the Ford order and the sunroof cable order, whether all these orders are on track and what kind of revenue we can expect for FY 2027 and 2028?
As far as the Japanese customer is concerned, on the alloy wheel side, from 3rd August, since we started the commercial production, the supplies are going regularly on daily basis every month, you know. This year, we will be able to supply, as I had mentioned earlier, about INR 80 on the alloy wheels. Next year, the orders are up to the tune of INR 240 . That is only with one customer. As regards the other Indian customer, as I mentioned, this is in the final As far as being a safety item, it is in the final stages of the testing. Once that breakthrough comes, so that additional supplies will come only in the next financial year. Regarding, yeah, sorry?
What can be the potential, sir, for the Indian customer?
Sorry to interrupt, Raghunandhan sir. May we request that you return to question queue follow-up?
Sure, I will do that. Thank you.
Yeah. Thank you, sir. The next question is on the line of Ronak Mehta from ICICI Securities. Please proceed with your question.
Thank you for the opportunity. Congratulations, sir, for the great set of numbers. Continuing on the question from the previous participant on alloy wheels, now that the product is already on road, what is the initial feedback from the customer, Japanese customer, and how are they planning to And can you also throw some light on the profitability of alloy wheels once it is ramped up fully? Will it be similar to the profitability of the overall company profitability currently, or it will be lower or higher? If you can throw some light on that.
See, Mr. Ronak, that these supplies are going regularly. There is a feedback from the market is very, very positive. As I said, there will be continuous ramp-up and continuous supplies in the next full year to the tune of INR 240 in the next financial year to only one customer, which is a Japanese customer. As regards the EBITDA margins, you know we are very focused on the bottom line. So EBITDA margins will remain in sync with the company's EBITDA margins.
Okay, sir. My second question is on the CapEx. Can you help us with the CapEx guidance for this year and next year?
Yes, CapEx we are continuously doing. As I said, I am very positive on the performance of the company, on the performance of the nation, and I am always optimist in every call, as you must have seen. So we are continuing with our CapEx, and very, very happy to share with you that we have commissioned our 19th plant for the expansion in the friction material, the brakes. 20th plant will be commissioning very soon, likely on January 14 or January 15. Because that plant will be the 20th plant, will be the fourth plant of Bangalore, you know. Because there are so many orders coming from the South customers. Also, the previous plant, you know, which we had put with an investment of about approximately INR 380 , that is now running on full capacity of 90% capacity utilization.
Thank you. So any CapEx number for this year or for the full year?
This year, we have already budgeted INR 700 . But of course, some part of it may, you know, if the machines come on, say, 7th April, this may go. It will be around this number, but we are going on an expansion path, a complete expansion path. Even next year, we will be putting in INR 500 further.
Okay, sir. Thank you. Thank you, sir.
Thank you, sir. The next question is on the line of Yash Agarwal from Nirmal Bang. Please proceed with your question.
Good evening, sir. Thank you for the opportunity. My first question is on the export revenue. I am seeing in H1, the export has grown by 75%, and at the starting of the year, you guided around 20% growth for export. Is there any revision in the guidance for H2 and full year?
So at the moment, we will stick to our guidance, you know, but we will definitely We are very confident that we will be crossing the INR 180 guidelines that we had given. Because I cannot say with certainty because of the geopolitical situation. But under the circumstances, we are doing pretty well.
Okay. My second question is on ALPS segment. It has gone around 70% year-over-year in [inaudible] 2027. How is the ASK EV business doing relative to overall two-wheeler industry in this segment? What is the current EV contribution to ASK's revenues in EV?
EV segment. EV also we are performing. We have grown in EV. We have grown by 98%.
Okay. Sir, Honda is expanding capacity and launching 10 new models next year. How is our content per vehicle and overall wallet share in the customer versus other customers? How is Honda's EV ramping plan going on?
See, we are associated with Honda in all the models. We will be growing as per the growth of the vehicles in Honda. I can only explain that. Second thing is-
As we always say, our content is slightly.
Yeah, our content is slightly higher only, not lower in Honda. Honda being the leading customer, it still enjoys about, I think, 35% of our total revenues.
Okay, sir. Also, like company has discussed about the independent aftermarket channel as a key growth strategy. So what has been the progress in expanding the distribution network and product portfolio? What is the current contribution of aftermarket revenue and growth expectation for midterm?
Our aftermarket is growing as per the growth of the company, and it generally outgrows the brake segment. It normally, of the overall revenue, constitutes about 11%.
Okay. One last question on the margin guidance that you have given, like we expect margins to increase to around 13%-14%. If we remove the impact of aluminium prices, what was our adjusted margin for Q2 and where we are in terms of the guidance?
We are maintaining what I suggested, because if you adjust the aluminium, abrupt aluminium prices, our margins will come to 13.5% or little more.
Okay, sir. Thank you. That is it from my side.
Because I repeatedly, I have said it is a denominator effect. Tomorrow, aluminum prices, everything gets sorted out geopolitically and aluminum prices fall, then you will suddenly see our EBITDA percentages. That is why I say we should see the growth in the absolute EBITDA.
Okay. Yeah. Sure, sir. Thank you.
The absolute EBITDA has grown by 30%.
Basically, our EBITDA growth is in line with overall revenues, and if the aluminum price is not hit, then the EBITDA percentage-
Yeah, see, EBITDA percentage is actually repeatedly, in every call I say it doesn't matter the percentage. But the good part is that we have grown as per the line of the growth of the net revenue, whatever we always tell you.
Okay. Thank you, sir.
Thank you, sir. The next question is from the line of Naveen Kumar Dubey from Narnolia Financial Services Limited. Please proceed with your question.
Yeah. Thanks for the opportunity, sir, and congratulations to the team for robust performance. My first question is related to the industry, sir. How should we expect the auto industry to pan out in FY 2028 after showing strong growth in FY 2027? Are we expecting that industry might be peaking around in FY 2028?
Yeah, I cannot forecast that, but the customers are at the moment very bullish. I can only say that. They are all expanding capacities. We expand our capacities along with that, being the core supplier. Well, if we feel that the industry will keep on going 20%, it will not grow. It will come to reasonable terms, but I think it should still grow at 10%. The industry should grow at 10%.
Because this year, sir, I think the industry would be doing somewhere around 24 million two-wheeler industry capacity.
That is what I am saying. But see, we should appreciate that the whole economy, there is a lot of money coming and circulating in the economy, and I think the demand for two-wheelers shall remain.
Okay. Sir, the second question is related to us. What are the key drivers behind the kind of growth that we are seeing? Is it because of new OEMs we are adding, or we are gaining market share, or it is because of increased premium offerings? What could be the driver?
See, we are doing what we have been doing for the last 30 years. Last 30 years, we have been outgrowing the growth of the industry, and there is no specific formula. But yes, some new customers, some new products, some new share. I think this is the basic common formula that since we are working hard, the customers are happy, so we are getting extra orders wherever they need.
Okay. Sir, one question related to the EV industry. What kind of EV adoption we are expecting maybe in FY 2028? Because that is the very fast-growing segment currently.
I think EV will soon, not soon, means in the next two years, it should enjoy 20% of the total market.
Okay. That's a big number, 20%.
Yeah, but it may take two years, two financial years further.
Okay. Sir-
Sorry to interrupt, Naveen sir. May we request that you return to question to follow up?
Sure.
Yeah. Thank you, sir. The next question is from the line of Basudeb Banerjee from CLSA. Please proceed with your question.
Yeah. Hi, thanks. Congrats, Rathee ji, for good set of numbers and happy Diwali in advance. One thing, just extension of the previous question. With two-wheeler industry EV penetration at 10% currently, how much is the EV product revenue mix for you? As of now, how much is the kit value difference between EV and ICE?
See, the kit value is higher in EV rather than ICE. But at the moment, our EV revenue is 5.9% because we are growing in the other segments. Plus, one of our main customers, initial main customer, Ola, as everybody knows, is not doing that well at the moment. However, we have taken the big breakthroughs in the other EV customers, and this will keep on growing.
And sir, as of now, what can be the multiplier of kit value per unit between the EV and ICE you are catering to?
See, in ICE, our kit value is about 950. EV is about 1,250 or 1,300. So the kit value is higher in EV.
This is for the braking system you mentioned?
No, no, this is for overall, including ALPS.
1.3x, 1.4x kind of?
Yes, it is.
And currently-
We will gain once this EV transition takes place. Ultimately, we are going to gain.
Sure, because as you said, from 10% penetration moving up to 20% in two years.
Yeah, it looks like, because we can give you a feedback what customers are thinking. They are thinking the transition will be faster now because of environmental reasons and so many other things.
Yeah. Currently, you are catering to all the key EV makers like Bajaj, TVS, Ather, Hero?
We are catering to Ola, Ather, TVS, and Bajaj a little bit. Bajaj we are less, but we are catering to Bajaj, and then Hero.
[inaudible]
Sorry to interrupt, Basudeb sir. Your voice is not clear.
Hello?
Sir, may we request that you come to follow up as your voice is not audible?
Yeah. Okay. Thank you.
Yeah. Thank you, sir. The next question is from the line of Preeti Sharma from Invest 1st Advisors. Please proceed with your question.
Yeah. Hi. Congratulations on a great set of numbers, sir. I have two questions. One is with the two-wheeler ICE contribution around 73% of half-yearly revenue, how do you see the revenue mix evolving over the next two to three years, especially across EVs, passenger vehicles, and commercial vehicles? My second question is, sorry, sir, you can go ahead.
No, no, you please ask.
Yeah, sorry. My second question was, since the company has started regular supplies of HPDC alloy wheels since August 2026, what is the expected revenue from this product, and are there opportunities to supply to OEMs in India and overseas?
Well, regarding the first question, that the ICE revenue and the EV revenue, probably the EV revenue will keep on little bit increasing and ICE revenue similarly coming little down. That is because the overall population of the two-wheelers is also increasing. There is a huge growth in that segment. That is why. That is the first thing. The second thing is on the HPDC alloy wheels, they will be first supplied only to the Indian OEMs, as we have cracked one OEM and the Japanese OEM. We expect there should be next financial year breakthrough in the other Indian OEMs also. As far as export is concerned, that is a later on situation, because there should be a very good demand in the Indian OEMs also, only.
Okay, great. Thank you so much, sir. That is it from my side. All the best.
Thank you.
Thank you, ma'am. The next question is from the line of Varun from SMIFS Limited PMS. Please proceed with your question.
Yeah, hi. Am I audible?
Yes, sir.
Yeah. First of all, congratulations for a very great set of numbers. I have a question on the debt part. Basically, I understand that we are doing INR 700 of CapEx this year and another additional INR 500 next year. Sir, what would be the peak debt for you, and how are you going to get the repayment done?
See, we are a cash-generating company for the last 32 years. This year also, so much of CapEx we are doing from the internal accrual, you know? All the cash that we are generating, that is replowed into the company. Repayment of the debt is no question at all, because our debt-equity ratio always remains around 0.5, which is very well controlled. Even the debt EBITDA, we like to keep around one year of EBITDA only, you know? With these kinds of fiscal management, I think debt repayment or the debt figure, it should be of no concern, you know?
Okay, that's assuring, sir. My second question was with respect to, sir, what is the margin on the HPDC versus the ALPS currently? What's the spread like looking in that segment?
Our EBITDA margins are very, very close in each of the segments, you know?
You would suggest that they are even, like they both are the same?
Yeah, yeah, same.
Okay, yeah. That is it from my side, sir. Thank you so much. And happy Diwali.
Happy Diwali, yeah, to everyone.
Thank you, sir. The next question is from the line of Yash Agarwal from Nirmal Bang. Please proceed with your question.
Just a few questions on the modeling side. We have seen other expenses end up in Q1 now, further in the Q2. Will they remain elevated with moderate profit?
What was the answer to your question?
Can you repeat the question?
He is asking.
I think on the other expenses side, which have gone up in the Q1, then further gone up in the Q2, they remain a bit elevated. Will they moderate going forward or any specific thing which is impacting the expenses?
The major part of the other expenses is contractual labor charges that was increased due to heavy increase in minimum wages in Haryana and other states.
Okay.
I think the CFO is telling that is because of the huge wage increase of 35% in this Haryana region, you know?
Okay. Sir, the share of associates that has been negative in the first half, so are we expecting them to improve going forward or like
Can you repeat again? It is not clear.
The voice is not clear.
Yash, your voice is not audible. Can you come back in the question queue?
Sure.
The next question is from the line of Harshal from CPA Advisory. Please proceed with your question.
Yeah. Hi, everyone. Am I audible?
Yes.
Yes, please.
Yeah.
Yes, sir.
I have two questions. Firstly, actually, I had joined a bit late, so I might have missed it. On the ALPS growth, I have seen you have significantly outperformed the other segments as well by around 69% in Q2 and 72% in H1. I actually wanted to understand what were the key drivers of this growth, and if you can give some clarity on how much of this is coming from the new customer additions and vis-a-vis the higher businesses from the existing customers.
This is some. As you know, many of the OEM customers are outgrowing the industry, so we are very well associated with them and moving hand in hand with them. Anybody who has the capacities will get the business, you know? As you have been noticing that we have been investing on an average at least INR 500 for the last four years continuously and replowing our profits in the business. We are reaping the advantages of that, you know?
Understood, sir. Secondly, I wanted to understand, as the company continues to invest in the new facilities, what are the internal cash generation and the funding plans for the upcoming CapEx cycle?
I think you should make out that once every EBITDA is half-yearly EBITDA numbers are INR 348 , there is enough cash generation, you know?
Okay. Understood, sir. That was helpful. Thank you so much, and a very happy Diwali to you.
Happy Diwali.
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. The next question is from the line of Naveen Kumar Dubey from Narnolia Financial Services Limited. Please proceed with your question.
Yeah. Thanks for the opportunity again, sir. How should we think from export perspective, like from industry standpoint, and second, from the company's perspective?
So export, how can we explain the industry point of view? We can explain our exports. As I said, that our exports will grow more than 25% year-on-year on an average. So that we are achieving in this year. Even next year, we have the clarity to grow even much faster. Next year, I think, let the time come, I will give a clear guidance in the next quarter.
Okay. The industry standpoint, sir, I was asking relate to how OEMs are responding to that. I mean, how is the export going there?
Even the OEMs exports are very good, but on that, even our products are going, but we supply to them locally. So I do not know how much of that is exported, how much is consumed.
Okay.
That part we don't take in our exports because that we supply domestically to them.
Okay. Sir, one question on a broad basis. Are we thinking of, as we are more into two-wheeler industry, how are we thinking of moving towards passenger vehicle? Is there any change in terms of when we pitch ourselves to the OEMs? Is there any differentiation between if we pitch to a two-wheeler OEM and a passenger vehicle OEM?
See, in passenger vehicle, we have grown by 79%
Yes
in this quarter. Overall, also we have grown in the half year also, we have grown by 67%. So there is a focus. We are growing, and as I said that we are going pretty fast, and till that time, all our capacities are utilized, all our last investments are totally in profits. What else we can do? I think we are doing pretty well.
Yeah. Okay, sir. One bookkeeping question, sir. What could be the possible reason behind the increase in trade receivable in the first half? Any particular thing there?
Increase in sales as well as increase in aluminum prices.
Okay. Related to that. Okay. Thank you so much for answering the questions, sir. All the best to the team, and Happy Diwali.
Happy Diwali. Thank you.
Thank you, sir. The next question is from the line of Mandira A. from Investo. Please proceed with your question.
Thank you for the opportunity. Couple of questions. What is the margin trajectory should we expect in H2 2027, assuming the aluminum price remains stable?
The margin trajectory will be the same if the aluminum prices remain high like this. It is not going to fall. It is going to be little better only, or remains the same, you know.
Got it. Secondly, sir, EV revenue contribution has increased from 4.8% in H1 2026 to 5.9% in H1 2027. What is the medium-term growth opportunity in EV segment, and which product category are expected to drive this growth?
This is again in line with the industry because EV as a whole percentage of the industry is also growing. That is why you see the mix there, that our mix has also changed from 4.8%- 5.9%.
Some new projects also we are adding, you know.
Okay, got it. That is really helpful. Thank you, and all the best for the coming quarters.
Thank you.
Thank you, ma'am. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. As there are no further questions from the participants, I now hand the conference over to Mr. Kuldip Singh Rathee from ASK Automotive Ltd for closing comments. Thank you, and over to you, sir.
Well, ladies and gentlemen, thank you so much for such patient hearing. Before Diwali, we would like to close on a very, very positive note. Whatever we have said for the full year, we are going to achieve. In my optimistic way, even the next financial year looks very, very promising. So on that very happy note, and wishing all of you happy Diwali, I would like to close this conference. Namaste, and wishing you all good health, happiness, and prosperity on this Diwali. Thank you.
Thank you, sir. On behalf of Adfactors PR, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.