ASK Automotive Limited — Q3 FY26 earnings call

Call held 29 Jan 2026

Management summary

ASK Automotive delivered a strong Q3 FY26, with consolidated revenue growing 18.5% YoY, EBITDA up 26.8%, and PAT increasing 21.3%. The company achieved an EBITDA margin of 13.4%, an 88 bps improvement, driven by higher volumes and economies of scale. While aluminum price increases impacted percentage margins, absolute EBITDA remained stable. The company also highlighted robust growth across all product segments and progress in green energy initiatives.

Highlights

  • Consolidated revenue grew 18.5% YoY in Q3 FY26 and 10.2% in 9M FY26.

  • EBITDA increased 26.8% YoY in Q3 FY26 and 21.9% in 9M FY26.

  • PAT grew 21.3% YoY in Q3 FY26 and 18.8% in 9M FY26.

  • EBITDA margin improved by 88 bps to 13.4% in Q3 FY26 and by 130 bps to 13.5% in 9M FY26.

  • All three product segments (Advanced Braking System, Aluminum Lightweighting Precision Solution, Safety Control Cable) showed robust growth.

  • 9.9 MW solar plant at Sirsa started supplies in April 2025, with another 11.55 MW plant in Rajasthan expected by Q1 FY27.

Concerns

  • Strategic reduction in wheel assembly business by 51.5% impacted consolidated revenue growth.

  • Aluminum alloy price increases led to a 30-40 bps reduction in EBITDA percentage margin, though absolute EBITDA remained stable.

  • Exports remained flat at Rs. 100 crore in 9M FY26 compared to Rs. 108 crore last year, primarily due to tariff issues.

Key financials

  1. Consolidated Revenue Growth 18.5%
  2. EBITDA Growth 26.8%
  3. PAT Growth 21.3%
  4. EBITDA Margin 13.4% +0.88%YoY
  5. EPS ₹4.05 +21.3%YoY

What they filed

Q1 FY27: revenue up 35.8%, net profit up 13.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue884 814 735 727 827 −6%860 +6%891 +21%987 +36%
EBITDA88 79 72 81 78 −11%89 +13%87 +21%91 +12%
Net profit58 54 47 54 53 −9%61 +13%61 +30%61 +13%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue Growth Q3Revenue Growth 9M
Advanced Braking System22%12%
Aluminum Lightweighting Precision Solution36%24%
Safety Control Cable22%10%
Wheel Assembly Business——

Capital allocation

high confidence
  • Capex ₹500 Cr Raised — additional Rs. 40 crore for solar power plant
    • Solar power plant ₹40 Cr
    • Capacity utilization at Karoli and New Bangalore facility

    Previously planned ₹450 Cr

    We had planned Rs. 450 crore initially in the FY26. However, we tried to minimize wherever it was possible. But then, another CAPEX of Rs. 40 crore we did to set up the solar power plant, which was not scheduled initially. And with this extra CAPEX, but still we will close the CAPEX at Rs. 500 crore.
  • Debt Debt disclosed
    Our debt equity never increases 0.5x and we will remain below that in spite of the extra expenditures on CAPEX that will be increasing this financial year. And it is always one year of EBITDA. Normally, it is close to that.
  • M&A Lioho (Taiwan JV) Joint venture · Under testing

    New product line (Alloy Wheels)

    That is progressing pretty well. We are going to take out the product in our premises, first product before February end. They will be testing for a few months and we hope to start the supplies in the start of H2.
  • M&A Sunroof Cable JV Joint venture · Setup done production q2 fy27

    New product line (Sunroof Cable)

    Addressable revenue about Rs. 100 Cr.

    Already, the machines have come, the setup is there and I think all our samples, etc., production will come out in the Q2 FY27 and the supply should start in the H2.
  • M&A AISIN JV Joint venture · Ramping up

    Aftermarket penetration

    That is ramping up now, slowly and gradually and maybe in the first quarter of next year, we will breakeven in that.

Guidance & targets

Capex

  • FY26 Capex Capex · FY26 · High confidence ₹500 crore

    Previously ₹450 crore → ₹500 crore

    And with this extra CAPEX, but still we will close the CAPEX at Rs. 500 crore.

    — Kuldip Singh Rathee

  • FY27 Capex Capex · FY27 · High confidence Within ₹400 crore
    FY27 CAPEX will be less. We intend to be within limits of Rs. 400 crore only.

    — Kuldip Singh Rathee

Market Share

  • Brake Pads Market Share Market Share · Ongoing · Medium confidence 10%-12%
    See, the Brake Pads, overall market is less than that. So our market share should be around between 10%-12% or something.

    — Kuldip Singh Rathee

Exports

  • FY26 Exports Exports · FY26 · Medium confidence Flat
    See, FY26 exports, as I mentioned, will be flat.

    — Kuldip Singh Rathee

Growth

  • Overall Growth Growth · Ongoing · High confidence Mid-teens
    We know our projections. We always say we will grow in mid-teens and we will be growing in mid-teens.

    — Kuldip Singh Rathee

Margin

  • EBITDA Margin Margin · Next Financial Year · High confidence Around 13.7%
    We had given a guidance of 13.7%, but that gets affected at least by 30 basis points because of the denominator factor of the Aluminium price increase. So that 13.7% becomes 13.4% and we are very hopeful that we will try to maintain around that only in the next financial year.

    — Kuldip Singh Rathee

Debt

  • Debt-to-Equity Ratio Debt · Ongoing · High confidence Below 0.5x
    Our debt equity never increases 0.5x and we will remain below that in spite of the extra expenditures on CAPEX that will be increasing this financial year.

    — Kuldip Singh Rathee

ROCE

  • Return on Capital Employed ROCE · Ongoing · Medium confidence Maintain 27%
    I hope, Rishi, you are satisfied with 27% ROCE. That is a tough job to achieve, which we are achieving. And the second thing I would correct that one plant has already gone to 80% capacity utilization. So only one is left now at 65%. ROCE will remain. This will be difficult to maintain 27%, but we make all our efforts to maintain 27%.

    — Kuldip Singh Rathee

New Product

  • Sunroof Cable JV Supply New Product · H2 FY27 · Medium confidence Starts in H2 FY27
    I think all our samples, etc., production will come out in the Q2 FY27 and the supply should start in the H2.

    — Kuldip Singh Rathee

  • Japanese Alloy Wheel JV Supply New Product · H2 FY27 · Medium confidence Starts in H2 FY27
    They will be testing for a few months and we hope to start the supplies in the start of H2.

    — Kuldip Singh Rathee

  • AISIN JV Breakeven New Product · Q1 FY27 · Medium confidence Q1 next year
    That is ramping up now, slowly and gradually and maybe in the first quarter of next year, we will breakeven in that.

    — Kuldip Singh Rathee

What to watch in Q4 FY26

Wheel Assembly Business Contribution

Next quarter (March end)
Current 51.5% reduction in 9M FY26
Target Further reduction/phase-out

Why it matters

Strategic reduction impacts consolidated revenue growth and overall business mix.

Sir, the customer has assured that by March end the balance will also go, which is about 48%.

Risks & concerns

  • Geopolitical environment and tariff issues

    medium

    Uncertainties created by tariff issues, particularly with US and Mexico, led to flat exports in 9M FY26.

    Management acknowledged

  • Aluminum alloy price volatility

    low

    Upward increase in aluminum prices affects EBITDA percentage (down 30-40 bps) due to denominator effect, though absolute EBITDA is stable as it's a pass-through.

    Management acknowledged

  • Competition from grey market operators

    low

    Despite GST reduction benefiting the company, it also intensifies competition with grey market operators in the aftermarket.

    Management acknowledged

Q&A highlights

6 direct
CAPEX for FY26 and FY27 Direct
We will close the FY26 CAPEX... at Rs. 500 crore. FY27 CAPEX will be less. We intend to be within limits of Rs. 400 crore only.

Clarifies the revised capital expenditure plans for the current and next fiscal years, indicating a higher spend in FY26 due to solar plant investment and a moderated spend in FY27.

Asked by Raghunandan N L

Brake Pads Market Share Direct
See, the Brake Pads, overall market is less than that. So our market share should be around between 10%-12% or something.

Provides a specific estimate of the company's market share in the brake pads segment.

Asked by Raghunandan N L

Ford Order Commencement and FY26 Exports Partial
See, FY26 exports, as I mentioned, will be flat. However, the exports to Ford have already started. The containers are going, but because of the great uncertainties created by the tariff issues... But still, we are very hopeful that since our product is highly technical, we feel there will be some smooth supplies in the FY27.

Confirms the start of the Ford order but flags geopolitical and tariff issues as a reason for flat FY26 exports, with optimism for FY27.

Asked by Raghunandan N L

Plant Utilization at Bangalore and Rajasthan Direct
In this quarter, we have reached between 75%-80% capacity utilization in the Bangalore plant. And now, it is almost fully operational Bangalore plant. And the capacity utilization in Rajasthan plant remains at 65% only, because in that we are waiting for some new items to be started, which are likely to start in the H2.

Provides specific capacity utilization rates for key manufacturing plants and explains the reason for lower utilization at the Rajasthan plant.

Asked by Raghunandan N L

Aluminum Prices and Margin Impact Direct
No, Mr. Naveen, we have not taken any price increase so far. And the margins that you see is already down by at least 30-40 basis point because of the aluminum price increase. The revenue has gone up by that much and the EBITDA margin has come down by 30 basis point. So what you see, the EBITDA margin in this quarter of 13.4% would have been 13.7% or 13.8% had the aluminum prices have not skyrocketed.

Clarifies that aluminum price increases are pass-through, impacting percentage margins (30-40 bps reduction) but not absolute EBITDA, which remained stable.

Asked by Naveen Kumar Dubey

New Solar Plant Incremental CAPEX Direct
No, we are not incurring any extra. There is no impact because the project is getting almost complete. All the supplies had already come before the price increase. So this new solar plant will be set up within the stipulated budget.

Assures that the new solar plant will not incur additional CAPEX beyond the revised plan, as supplies were secured before price increases.

Asked by Vijay Pandey

Outlook for Q4 and FY27 Direct
So as regards the coming quarter is there, we have very strong projections from the OEMs. And even the independent aftermarket is looking very good because of the GST reduction from 28% to 18% in our line. So we are very bullish even on this Q4. And as regards the next year, we are very bullish on that because we feel that this two-wheeler story will continue because it has started continuing only after a gap of many years. So even the next year seems to be very good.

Management expresses strong optimism for Q4 FY26 and FY27, citing OEM projections, positive impact of GST reduction, and a sustained recovery in the two-wheeler sector.

Asked by Vijay Pandey

ABS Implementation Update Partial
No, there is no update from the government. I think it was a draft which is now hanging because of the request of the OEMs.

Indicates a delay or uncertainty regarding the implementation of the draft ABS exhibition due to ongoing discussions between OEMs and the government.

Asked by Yash Agrawal

3 min read 7 chapters

Detailed narrative

Robust Q3 & 9M FY26 Financial Performance

ASK Automotive delivered a strong financial performance in Q3 FY26, with consolidated revenue growing 18.5% year-on-year, and 10.2% for the nine-month period. EBITDA saw a significant increase of 26.8% in Q3 and 21.9% in 9M, while PAT grew 21.3% in Q3 and 18.8% in 9M. The company's EBITDA margin improved by 88 basis points to 13.4% in Q3 FY26 and by 130 basis points to 13.5% in 9M FY26, primarily driven by higher volumes and economies of scale.

Strong Growth Across Product Segments

All three of ASK Automotive's core product segments demonstrated healthy growth. The Advanced Braking System segment recorded a 22% revenue growth in Q3 and 12% in 9M FY26. The Aluminum Lightweighting Precision Solution segment showed even stronger performance with 36% revenue growth in Q3 and 24% in 9M. The Safety Control Cable segment also contributed positively with 22% growth in Q3 and 10% in 9M FY26.

Impact of GST 2.0 Reforms and Market Outlook

Management highlighted the positive impact of GST 2.0 reforms, particularly the reduction of GST rate from 28% to 18% for their products. This change is enabling the company to gain market share from grey market operators and outgrow the Indian aftermarket. The company expressed bullishness for Q4 FY26 and FY27, anticipating continued growth in the two-wheeler sector, supported by strong OEM projections and sustained consumer sentiment.

Green Energy and Sustainability Initiatives

ASK Automotive is actively pursuing green energy initiatives. Its 9.9 megawatt solar plant at Sirsa, Haryana, commenced supplies in April 2025, contributing to sustainable operational economies. Furthermore, the company is installing another 11.55 megawatt captive solar power plant in Rajasthan, which is expected to be operational by Q1 FY27, underscoring its commitment to environmental sustainability.

Capital Expenditure and Capacity Expansion

The company revised its FY26 CAPEX plan upwards from an initial Rs. 450 crore to Rs. 500 crore, primarily due to an additional Rs. 40 crore investment for the new solar power plant. For FY27, CAPEX is projected to be within Rs. 400 crore. Current capacity utilization at the Bangalore plant is 75-80%, while the Rajasthan plant is at 65%, awaiting the start of new items in H2 FY26 to boost utilization.

Progress on Joint Ventures and New Product Lines

ASK Automotive provided updates on its strategic joint ventures. The Taiwan JV (Lioho) for alloy wheels is progressing well, with product testing underway and supplies anticipated to begin in H2 FY27. The Sunroof Cable JV has completed its setup, with production expected in Q2 FY27 and supplies starting in H2 FY27, targeting an addressable revenue of approximately Rs. 100 crore. The AISIN JV is also ramping up and is projected to achieve breakeven by Q1 next year.

Aluminum Prices and Margin Management

Management clarified the impact of rising aluminum alloy prices on margins. While aluminum price increases are a pass-through to customers, they cause a 30-40 basis point reduction in the EBITDA percentage margin due to the denominator effect of higher revenue. However, the absolute EBITDA remains stable, indicating effective cost management and pricing strategies.

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