Concall AI

ASK Automotive Limited — Q4 FY26 earnings call

Call held 20 May 2026

Management summary

ASK Automotive reported strong Q4 and FY26 results, with significant revenue and EBITDA growth, driven by robust performance across segments and benefits from GST 2.0 reforms in the aftermarket. Despite challenges from geopolitical tensions, commodity price volatility, and input cost pressures, the company maintained healthy margins and is optimistic about future growth, supported by strategic investments in green energy and new product initiatives.

Highlights

Q4 FY26 consolidated revenue growth of 35.3% YoY.
FY26 consolidated revenue growth of 16.2% YoY (20.1% excluding pass-through and wheel assembly reduction).
Q4 FY26 EBITDA growth of 31.1% YoY to Rs. 140 Cr.
FY26 EBITDA growth of 24.1% YoY to Rs. 551 Cr.
FY26 EPS increased to Rs. 15.08, up 20.1% YoY from Rs. 12.56.
Independent aftermarket grew by 24.7% in FY26 due to GST 2.0 reforms.
Advanced braking system revenue grew by 17% in FY26.
Aluminium light-weighting precision solutions revenue grew by 30% in FY26.
Safety control cable revenue grew by 14% in FY26.
ROACE at 26.9% and ROE at 25.3% in FY26.
Bangalore plant reached 90% capacity utilization.

Concerns

EBITDA margin impacted by pass-through alloy prices (80 bps in Q4, 40 bps in FY26), leading to a conscious loss of Rs. 5 Cr in Q4.
Geopolitical conflict in West Asia disrupted supply chain, causing volatility in energy, commodity, and currency prices, affecting exports.
Exports declined to Rs. 141 Cr in FY26 from Rs. 147 Cr last year due to trade disruptions, higher tariffs, and supply chain issues.
Negative working capital in FY26 due to sudden increase in aluminium prices and delayed pass-through in invoices.
Input cost pressure from minimum wage increases.

Key financials

2 periods

Q4 FY26

Consolidated Revenue Growth
35.3%
YoY +35.3%
EBITDA
₹140 Cr
YoY +31.1%
EBITDA Margin
12.1%
PAT
₹72 Cr
YoY +24.2%
EPS
₹3.63
YoY +24.2%

FY26

Consolidated Revenue Growth
16.2%
YoY +16.2%
EBITDA
₹551 Cr
YoY +24.1%
EBITDA Margin
13.1%
EPS
₹15.08
Exports
₹141 Cr
ROACE
26.9%
ROE
25.3%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	884	814	735	727	827 −6%	860 +6%	891 +21%	987 +36%
Expenses	796	734	664	646	749	771	805	895
EBITDA	88	79	72	81	78 −11%	89 +13%	87 +21%	91 +12%
Margin	10%	10%	10%	11%	9%	10%	10%	9%
Other income	8	11	9	10	12	12	14	12
Interest	3	3	3	2	4	4	4	6
Depreciation	14	15	15	15	15	15	15	15
Profit before tax	78	73	63	73	72 −8%	82 +12%	82 +30%	83 +14%
Tax rate	25%	26%	26%	26%	26%	26%	26%	26%
Net profit	58	54	47	54	53 −9%	61 +13%	61 +30%	61 +13%
EPS	2.94	2.75	2.37	2.76	2.71	3.08	3.10	3.12

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

Independent Aftermarket
0.247 decimal_fraction FY26 Growth
Advanced Braking System
0.17 decimal_fraction FY26 Growth
Aluminium Light-weighting Precision Solutions
0.3 decimal_fraction FY26 Growth
Safety Control Cable
0.14 decimal_fraction FY26 Growth
Wheel Assembly Business
nil from April 1, 2026 string Revenue Status

Capital allocation

high confidence

Capex ₹400 Cr internal accruals
- New plant capacities
For next year growth of mid-teens, we need to invest around RS.400 Cr which we shall be investing in this year also. All these internal accruals free cash will be ploughed back in the company, so we will see to it even the debt levels are contained within the limits.
Debt Debt disclosed

All these internal accruals free cash will be ploughed back in the company, so we will see to it even the debt levels are contained within the limits.
Dividend ₹1.85/share (final) Payout ratio 92.5%

The board has recommended a dividend of 92.5%, that is Rs. 1.85 per equity share of face value of Rs. 2 each.
M&A Lioho and Kyushu Strategic partnership · Pending testing

Alloy wheel business

My second question is basically on the strategic partnership that we have with Lioho and Kyushu on the alloy wheel. So where are we right now and when can we expect them to contribute to our overall top line? The second partnership is also as I've already mentioned under testing and we are very confident that something should come out before H2.
M&A TD Holding Joint venture · Production started

Cable JV

And update on the cable JV with TD Holding. GTD cable holding, the production has come out and to the system suppliers have audited the plant and the supplies again will start in H2.
Liquidity Liquidity disclosed Internal accruals will be ploughed back into the company to fund capex and contain debt levels.

All these internal accruals free cash will be ploughed back in the company, so we will see to it even the debt levels are contained within the limits.

Guidance & targets

Revenue

Overall Revenue Growth Revenue · FY27 · Medium confidence mid-teens

We are confident that will continue to grow around mid-teens in FY27.

— Kuldip Singh Rathee

EBITDA Margin

EBITDA Margin EBITDA Margin · subsequent quarters · Medium confidence sustain current level and improve gradually

Our aim is to sustain current level of EBITDA margins and continue our efforts to improve gradually in the subsequent quarters

— Kuldip Singh Rathee

Exports

Export Growth Exports · FY27 · Medium confidence 20%

This year we are very confident of growing at 20%, provided the geopolitical situation remains reasonable

— Kuldip Singh Rathee

Capex

Capex Spend Capex · FY27 · High confidence Rs. 400 Cr

FY27 we'll be spending about Rs. 400 Cr.

— Kuldip Singh Rathee

Alloy Wheels Revenue

Alloy Wheels Revenue Alloy Wheels Revenue · FY27 · High confidence Rs. 90 - Rs. 100 Cr

FY27 we are expecting revenue of around Rs. 90 - Rs. 100 Cr

— Kuldip Singh Rathee
Alloy Wheels Revenue Alloy Wheels Revenue · FY28 · High confidence Rs. 220 Cr

and FY28 will be about Rs. 220 Cr.

— Kuldip Singh Rathee

What to watch in Q1 FY27

Bikaner solar plant commissioning

Q2 FY27

Current Progressing well

Target Commissioned

Why it matters

Will contribute to sustainable operational economies and green energy initiatives.

Our second captive solar plant of 11.55 megawatt in Bikaner, Rajasthan is progressing well and is expected to be commissioned in Q2 FY27, this reflects ASK's special focus on green energy.

Risks & concerns

Geopolitical conflict and commodity price volatility
high

Geopolitical conflict in West Asia disrupted supply chain, causing volatility in energy, commodity, and currency, especially aluminium alloy prices, affecting exports and margins.

Management acknowledged
Input cost pressure from minimum wage increases
medium

Minimum wage increases created input cost pressure, but management expects OEMs to compensate.

Management acknowledged
Deficient monsoon
medium

Acknowledged impact on agriculture income but stated difficulty in quantifying, and noted government interventions (MSP) and past instances of forecasts being reversed.

Analyst downplayed

Q&A highlights

7 direct

Impact of alloy price increase on Q4 margins and pass-through Direct

No, there is only differences because the alloy prices shot up through the roof and especially they rose about 10% in the March itself. That is why the whole Q4 margins were affected and because of the abrupt increase in March in the aluminium prices, some of the aluminium rise could not be passed on, in the aftermarket. There was a conscious loss by us of Rs. 5 Cr because every day we cannot increase the prices and the prices were rising actually every day. Everything has been corrected April onwards and all these aluminium price rises which has happened in April also, they have been passed on to the customer both on the aftermarket front as well as to our OEM customers.

Explains the specific reason for Q4 margin impact and confirms price pass-through post-quarter, including a quantified loss.

Asked by Ankit

Capacity utilization at Bangalore and Karoli plants Direct

Very, very happy to share that Bangalore we have reached 90% capacity utilization that we set up last year, our 18th plant and the third plant in Bengaluru. The Bangalore all capacities are full now. In the Karoli plant, the capacities utilization is still 65%, that is the reason that we have made investment for the alloy wheels. The alloy wheel supplies to the Japanese customer in the beginning of the H2, so this current year you'll see much higher capacity utilization in the Karoli plant also.

Provides insight into operational efficiency and future growth drivers from Karoli plant's alloy wheel supplies.

Asked by Ankit

Outlook for two-wheeler industry production volume growth in FY27 and company margins Direct

As far outlook of the two-wheeler industry is concerned, our all our OEM customers they are carrying on with their original production schedules which shows a nice growth in this year also and none of the supplies have been affected by the raw materials or anything. We have passed on the aluminium price increase impact. Overall we achieved EBITDA margin of 13.1% and except for the denominator factor. We will be able to maintain that EBITDA margin. If the aluminium prices are shot through the roof, then our EBITDA margin may look less but the absolute numbers what we have planned in the next financial year will remain the same.

Gives management's view on industry stability and their ability to maintain absolute EBITDA despite commodity volatility affecting percentage margins.

Asked by Nitin Agarwal

Independent aftermarket segment growth outlook for FY27 Direct

I have been explaining right from beginning in each and every quarter that we were suffering on the GST front in the independent aftermarket because of the 28% GST. The government was kind enough to revise it to 18% in GST 2.0. As soon as it was revised, our sales in the independent aftermarket shot up because we could snatch some share of the gray market operators and the duplicators from the in the aftermarket. That's how this stupendous growth and we do feel that this year also we'll be maintaining a good growth in the independent aftermarket.

Explains the driver of past growth (GST 2.0) and confidence in continued strong growth for a key segment in FY27.

Asked by Rahul Kumar

Impact of employee cost increases and pass-through Direct

Whatever the aluminium prices, the customer is already compensating us. As far as regarding the wages, everybody knows the government has increased the wages and whatever the government wages increase, it's always compensated by the customers. We don't see the margin pressure on that side. Of course, it may be the customers will need to increase the prices of the vehicle by some percentage.

Addresses a potential margin concern from rising wages and management's expectation of cost pass-through from OEMs.

Asked by Mrunmayee Jogalekar

Impact of a deficient monsoon on business Partial

This monsoon if it is deficient, it certainly affects the agriculture income, that everyone knows. But we can't quantify the impact that it will have, let the time come. Many of the times the forecasts have been reversed also. In last 2 years also they were saying El Nino factor which never happened and maybe the government increases the MSP prices of the farmer farmers' crop and they get duly compensated because of that.

Acknowledges a significant macro risk for the two-wheeler segment but downplays immediate quantifiable impact, citing past forecast reversals and government support.

Asked by Michell Shell

Reason for negative working capital in FY26 Direct

This is due to sudden increase in aluminium prices in the month of March and the impact is on the balance sheet date. That's why it's looking like that because the pricing to the customers takes time to pass on in the terms of invoices. So, there is increase in receivables share and I think that is the only reason.

Clarifies a balance sheet anomaly, attributing it to temporary timing differences in price pass-through and increased receivables due to aluminium price hikes.

Asked by Yash Agarwal

Drivers of Q4 growth beyond price pass-through Direct

Mr. Sahil, that's with the God's grace, that's the track record of the company that for last 30 years we've been outperforming the industry., I think that's what we have done in the last quarter also and we'll outgrow current year also.

Management attributes outperformance to a consistent track record of outgrowing the industry, implying market share gains and product mix improvements.

Asked by Sahil Sanghvi

3 min read 7 chapters

Detailed narrative

Resilient Indian Economy and Two-Wheeler Industry Growth

The Indian economy demonstrated resilience in FY26, projected to grow at an impressive 7.6% GDP, driven by robust domestic demand and government policies. The two-wheeler industry mirrored this strength, closing FY26 with a strong production volume of 26.7 million units, up from 23.9 million units in FY25, surpassing the previous peak of FY19. This growth was further supported by GST 2.0 reforms, which reduced the GST rate from 28% to 18% for certain products, benefiting the aftermarket segment.

Strong Q4 and FY26 Financial Performance

ASK Automotive delivered robust financial results for Q4 and FY26. In Q4 FY26, consolidated revenue grew by 35.3% year-on-year, with net revenue (excluding pass-through and wheel assembly reduction) up 30%. EBITDA reached Rs. 140 Cr, a 31.1% year-on-year growth, though the margin was impacted by 80 basis points due to alloy price volatility. For the full year FY26, consolidated revenue grew by 16.2% (20.1% net revenue), with EBITDA at Rs. 551 Cr, up 24.1% year-on-year. EPS increased to Rs. 15.08, up from Rs. 12.56 in the prior year.

Strategic Focus on Green Energy Initiatives

The company is actively pursuing green energy initiatives to enhance operational sustainability. Its 9.9 megawatt solar plant at Sirsa, Haryana, has been fully operational since April 2025, contributing to sustainable operational economies. Furthermore, a second captive solar plant of 11.55 megawatt in Bikaner, Rajasthan, is progressing well and is expected to be commissioned in Q2 FY27, underscoring ASK Automotive's commitment to environmental responsibility and cost efficiency.

Segmental Outperformance and Aftermarket Gains

All three core product segments demonstrated strong performance, outperforming the overall industry growth of 11.8% in FY26. The advanced braking system revenue grew by 17%, aluminium light-weighting precision solutions by 30%, and safety control cable revenue by 14% year-on-year. Notably, the independent aftermarket segment achieved a significant growth of 24.7% in FY26, largely attributed to the benefits of GST 2.0 reforms, which allowed the company to capture market share from grey market operators.

Margin Dynamics and Commodity Price Impact

While the company achieved a Q4 EBITDA margin of 12.1% and an FY26 margin of 13.1%, these were impacted by the pass-through effect of significant increases in aluminium alloy prices. Management noted a conscious loss of Rs. 5 Cr in Q4 due to abrupt price hikes in March that could not be immediately passed on. However, price increases implemented in April are expected to correct this. The company aims to sustain current EBITDA margins and gradually improve them in subsequent quarters, despite input cost pressures from minimum wage increases, which are expected to be compensated by OEMs.

Capacity Expansion and Strategic Partnerships

ASK Automotive is expanding its manufacturing capabilities, with the Bangalore plant reaching 90% capacity utilization. The Karoli plant, currently at 65% utilization, is set to see higher utilization with alloy wheel supplies to a Japanese customer beginning in H2 FY27. The company plans a capex of Rs. 400 Cr in FY27 for new plant capacities, funded by internal accruals. Strategic partnerships, including one with Lioho and Kyushu for alloy wheels and a cable JV with TD Holding, are progressing, with contributions expected from H2 FY27.

Outlook and Future Growth Drivers

Management expressed confidence in maintaining a 'mid-teens' revenue growth trajectory for FY27, driven by new product introductions, increased content per vehicle, and new customer acquisitions. They anticipate 20% export growth in FY27, contingent on geopolitical stability. The strategic reduction in the low-margin wheel assembly business, which will be nil from April 1, 2026, means that the real growth for FY27 will be 4% higher than the reported year-on-year growth. The company expects continued outperformance of the industry through these initiatives.

This is an AI-generated summary of a publicly available earnings call transcript.

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