CIE Automotive India Limited — Q4 FY26 earnings call

Call held 24 Apr 2026

Management summary

CIE Automotive India reported strong Q1 CY26 results with consolidated sales and EBITDA reaching historical highs, driven by robust performance in both India and Europe. India operations saw 15% YoY sales growth, while Europe's margins recovered significantly due to restructuring. However, challenges persist from input cost inflation in India and a weak European light vehicle market, alongside muted exports due to geopolitical factors.

Highlights

  • Consolidated sales reached INR 25.4 billion, marking a 16% YoY and 9% QoQ increase, achieving the highest absolute quarterly consolidated sales in company history.

  • Consolidated EBITDA grew 16% YoY to INR 4.3 billion, with a robust margin of 16.9%, also a historical high.

  • India operations demonstrated strong growth with sales up 15% YoY to INR 16.2 billion, indicating continued positive momentum.

  • European operations showed significant margin recovery, with EBITDA improving to 15.7% from 12.7% QoQ, attributed to successful restructuring activities.

  • New orders totaling INR 3.5 billion in annual turnover were secured in Q1, with 11% from the EV sector, signaling future growth potential.

Concerns

  • India EBITDA margin declined to 17.6% from 18.6% YoY, primarily due to gas and material cost increases and higher energy tariffs in Maharashtra.

  • Exports from India were muted in Q1 due to end-market demand weakness in the US and Europe, and geopolitical situations, rather than logistics issues.

  • The European light vehicles market is forecasted to be slightly negative (0-3% decline) in the next few quarters, posing a challenge for sustained growth.

  • Metalcastello's performance remains impacted by the weak off-highway sector and non-materialization of previously awarded EV programs, despite Caterpillar's global growth.

Key financials

  1. Consolidated Sales ₹25,400 Cr +16%YoY
  2. Consolidated EBITDA ₹4,300 Cr +16%YoY
  3. Consolidated EBITDA Margin 16.9%
  4. Consolidated EBIT ₹3,400 Cr +18%YoY
  5. Consolidated EBT ₹3,300 Cr +20%YoY

What they filed

Q1 FY27: revenue up 10.0%, net profit up 17.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,136 1,119 1,163 1,204 1,254 +10%1,274 +14%1,332 +15%1,325 +10%
EBITDA185 170 186 183 199 +8%195 +15%219 +18%213 +16%
Net profit124 116 219 127 138 +11%134 +16%234 +7%149 +17%
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

Share of Sales
₹25,400 Cr Total
  • India Operations ₹16,200 Cr 63.8%
  • European Operations ₹9,200 Cr 36.2%

Order book

high confidence

Inflow this quarter

₹3,500 Cr

Composition

  • EV sector (product) 11%
New order allocation in Q1 was strong, contributing INR 3.5 billion in annual turnover, with a significant portion from the EV sector. The company is optimistic about future sales driven by these new orders.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹900 Cr this quarter · ₹4,000 Cr (CY26) planned New plan
    • Capacity expansion in India (forging, stamping, iron casting)
    in India, in this quarter, we have already invested around a little bit more than INR900 million. That is around close to 6% of our sales. So it's in line with our internal, let's say, control targets. But you are right. And the second half of this year, we expect to boost the capex, and we will, let's say, probably surpass this 6%, 7% of the turnover in India that we are, let's say, fixing as a control target. ... we can talk about this INR4 billion to INR5 billion, that would be the capex that we can be expecting in India in this calendar year. ... we are adding at least 3 new forging lines in our forging business. We are also adding stamping line – I mean metal stamping line for our customers because we are also fully booked in this moment. We are also adding iron casting molding line also to the to increase our capacities and to cope with the demand that is coming for next year.
  • Liquidity Liquidity disclosed The company is in a cash position and has the capability to continue increasing capex and capacities.
    Yes, this is also you know that we are in a cash position, as you said, and we have the capability to continue increasing our capex and increasing our capacities, and that will be one reality.

Guidance & targets

Volume

  • European Light Vehicles Market Growth Volume · next few quarters · Medium confidence 0% to -3% negative
    Now IHS is forecasting that the European light vehicles market will be slightly negative in the next few quarters, somewhere 0%, 2%, 3% negative, while the heavy trucks will grow in low single digits, 3% to 5%, but this growth is on a reduced base.

    — Vikas Sinha

  • European Heavy Trucks Market Growth Volume · next few quarters · Medium confidence 3% to 5% low single digits

    — Vikas Sinha

Growth

  • India Business Growth Momentum Growth · next few months · High confidence positive momentum
    And we, therefore, expect positive momentum around growth in the India business to continue into the next few months.

    — Vikas Sinha

  • India Business Growth vs. Market Growth · High confidence a little higher than the market
    We do expect it to be a little higher than the market.

    — Vikas Sinha

  • Export Performance (India) Growth · Q2 onwards · High confidence improve
    I think for us, our export performance will improve in Q2 onwards because of our new orders.

    — Vikas Sinha

Capex

  • India Capex Capex · CY26 · High confidence INR 4 billion to INR 5 billion
    we can talk about this INR4 billion to INR5 billion, that would be the capex that we can be expecting in India in this calendar year.

    — Ander Arenaza Alvarez

Energy Prices

  • European Gas Price Energy Prices · next year · High confidence EUR 35 per megawatt
    And also the future of the gas for next year are around EUR 35 per megawatt.

    — Ander Arenaza Alvarez

Market Position

  • India as European Supply Region Market Position · next years · High confidence winning market, winning region
    So I think that India will be a winning market, winning region on this European supply, especially because of the competitivity and, let's say, price pressures that European OEMs are having.

    — Ander Arenaza Alvarez

  • Consolidation and Exports from India Market Position · next 2, 3, 5 years · High confidence will happen and we will gain
    So yes, that will also happen, but none of – neither the consolidation nor the exports will happen in a hurry. That's something we'll ask you to keep in mind. So it's not going to happen in this calendar year, for example. There will not be a tangible impact. But over the next 2, 3, 5 years, definitely, both the things will happen. And on both, we will gain.

    — Vikas Sinha

What to watch in Q1 FY27

India Business Growth Outperformance

next few months
Current 15% YoY sales growth in Q1 CY26, similar to market
Target Growth 'a little higher than the market'

Why it matters

Management guided for outperformance driven by new orders; verifying this will confirm execution against strategy.

And we, therefore, expect positive momentum around growth in the India business to continue into the next few months. ... We do expect it to be a little higher than the market.

Risks & concerns

  • Input cost inflation (gas, material, energy tariffs)

    high

    Gas and material cost increases due to Iran geopolitical situation and energy tariff increase in Maharashtra impacted India margins.

    Management acknowledged

  • Geopolitical situation impacting exports

    medium

    War in West Asia impacting exports and Iran geopolitical situation causing gas/material cost increases.

    Management acknowledged

  • European light vehicles market slowdown

    medium

    IHS forecasts European light vehicles market to be slightly negative (0-3% decline) in the next few quarters.

    Management acknowledged

  • EV adoption challenges and non-materialization of programs

    medium

    Lack of infrastructure and range anxiety for EV adoption, and previously awarded EV programs for Metalcastello did not materialize.

    Management acknowledged

  • Supply chain disruptions for customers

    medium

    Geopolitical issues could lead to customer supply chain disruptions, temporarily impacting demand.

    Management acknowledged

Q&A highlights

7 direct
India Business Growth Outperformance Direct
Of course, the base for the last 2 quarters, Q4C25 and Q1C26, has been very high. The base growth in the market has been very high, as you rightly pointed out, due to the GST reforms. Of course, there will be some tapering down of the market. But I think as our new order momentum is concerned, I think we are in a good space there.

Analyst questioned the company's ability to outpace industry growth, and management provided specific new order wins (iron castings, 2-wheeler crankshafts, Mahindra stampings) as drivers.

Asked by Rishi Vora, Kotak Securities

Export Impact due to Geopolitical Tensions Direct
No, what you mentioned, I mean, both U.S. market and European market, those are our export markets are not doing well in this first quarter, okay? So that's the reason that the export rate did not grow too much.

Clarified that muted Q1 exports were due to weak end-market demand in US/Europe and schedules, not logistics, with new export projects expected to ramp up from Q2.

Asked by Rishi Vora, Kotak Securities

India Supply Chain and Gas Issues Direct
So far, it has really not affected the schedules or the production. Of course, we are taking precautions. We are trying to look for alternatives like biogas, LDO, wherever we can. But to be fair, there has been really no impact on the schedules because of those issues.

Addressed concerns about gas issues and plant shutdowns in India, confirming no material impact on production schedules so far, but acknowledged potential future risks if the situation escalates.

Asked by Pratik Kothari, Unique PMS

European Consolidation and Market Share Gains Direct
What is happening in Europe is that our customers now they are concerned that in their supply base, they have suppliers with a very complicated financial situation. And some of them, they are already struggling. If you consider that in the north of Europe, for example, there are also some stresses on the energy prices and also some inflation, the materials and so on, then the situation, the financial situation of these struggling competitors will worsen in the next quarters.

Management confirmed that consolidation is indeed occurring in Europe due to struggling smaller companies, positioning CIE Automotive India to gain market share due to its strong financial health and operational excellence.

Asked by Pratik Kothari, Unique PMS

Gas and Energy Price Impact on Margins Direct
The drop in margin on a year-on-year basis is due to 3 factors: the first, gas and material cost increase due to the Iran geopolitical situation, energy tariff increase in Maharashtra state, and third, if you remember, our Q1 C '25 EBITDA included a positive one-off impact of INR87 million, which amounted to almost 0.6% of sales, and this was on account of the mega subsidy at our Zaheerabad Stampings unit.

Provided a detailed breakdown of the 1% YoY margin drop in India, attributing it to specific external factors (gas/material costs, energy tariffs) and a prior year one-off benefit.

Asked by Vijay Kumar Pandey, Axis Capital

Metalcastello Performance vs. Caterpillar's Global Growth Partial
The situation in Metalcastello after some, let's say, business reduction or a slowdown trend that we had in the last years, now it's in a stable situation. So we see that the business is flat or stable in this moment. Last year, if you recall, we did the restructuring activities. So now the company is perfectly aligned with the turnover level.

Analyst questioned Metalcastello's underperformance relative to Caterpillar's strong global growth, and management explained it's due to product mix, OEM outsourcing decisions, and non-materialization of EV programs, with the off-highway sector being weak.

Asked by Priya Ranjan, HDFC AMC

India Capex Plan for CY26 Direct
we can talk about this INR4 billion to INR5 billion, that would be the capex that we can be expecting in India in this calendar year.

Management provided a clear numerical target for India's capex for CY26 (INR 4-5 billion) and detailed the purposes, indicating significant investment in capacity expansion across various product lines.

Asked by Priya Ranjan, HDFC AMC

India as an Export Hub for Europe Direct
There is a clear situation now and a clear interest from most of our customers here in Europe to localize the production in India. I mean we are in contact with them. They are absolutely really interested in our capacities in India, and we are developing, we are quoting, they are visiting us, they are auditing our facilities in aluminum, in forgings, machining, in the gear castings.

Confirmed strong interest from European OEMs to localize production in India, highlighting ongoing commercial activities and the company's strategic positioning to become a key supplier to Europe in the coming years.

Asked by Viraj Kacharia, SIMPL

2 min read 6 chapters

Detailed narrative

Strong Consolidated Performance Driven by India and Europe

CIE Automotive India reported robust Q1 CY26 results, achieving its highest-ever absolute quarterly consolidated sales and EBITDA. Consolidated sales stood at INR 25.4 billion, marking a 16% year-on-year and 9% quarter-on-quarter increase. Consolidated EBITDA reached INR 4.3 billion, also up 16% YoY, with a healthy margin of 16.9%. This strong performance reflects positive momentum across both Indian and European operations.

India Operations: Growth Amidst Margin Pressures

India operations delivered sales of INR 16.2 billion, a 15% year-on-year increase, indicating continued market strength despite some uncertainties. However, the India EBITDA margin saw a year-on-year decline to 17.6% from 18.6%. This compression was attributed to three factors: increased gas and material costs due to the Iran geopolitical situation, higher energy tariffs in Maharashtra, and the absence of a one-off positive impact of INR 87 million (0.6% of sales) from a mega subsidy in Q1 CY25.

European Operations: Margin Recovery Post-Restructuring

European operations recorded sales of INR 9.2 billion, a 17% year-on-year increase, though sales remained flat in Euro terms. A significant highlight was the strong margin recovery, with EBITDA improving to 15.7% in Q1 CY26 from 12.7% in Q4 CY25 and 13.9% in Q1 CY25. This recovery is a direct result of restructuring activities undertaken in CY25, leading to a healthy EBT of almost INR 1 billion despite a challenging market environment.

Strategic Capex for Capacity Expansion in India

The company is making substantial capital investments in India, with approximately INR 900 million already spent in Q1 CY26. The planned capex for CY26 in India is estimated to be between INR 4 billion and INR 5 billion, with 95% of this growth capex allocated to India. These investments are focused on expanding capacity across various verticals, including adding at least three new forging lines, a stamping line, and iron casting molding lines, to meet anticipated demand and new orders.

New Order Wins and Export Outlook

CIE Automotive India secured new orders amounting to INR 3.5 billion in annual turnover during Q1 CY26, with 11% originating from the EV sector. While exports were muted in Q1 due to weak end-market demand in the US and Europe and geopolitical factors, management expects export performance to improve from Q2 onwards as new projects come on stream. The company is actively pursuing opportunities to become a key supplier to European OEMs, leveraging India's competitiveness.

Market Consolidation and Future Growth Drivers

Management highlighted ongoing consolidation in the European auto component market, with struggling smaller players creating opportunities for stronger entities like CIE. The company is optimistic about gaining market share in this environment due to its solid financial position, quality, and delivery performance. Over the next 2-5 years, both market consolidation and increased exports from India are expected to be significant growth drivers, with India positioned as a 'winning market' for European supply.

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