ASK Automotive (ASKAUTOLTD) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 FY26 results with consolidated revenue up 3.5% year-over-year, EBITDA up 19.3% to Rs. 123.3 crore, and PAT up 16.3% to Rs. 66.1 crore, with EPS rising to Rs. 3.35.

• Maintained market leadership in Advanced Braking System, with all three business segments showing positive growth despite muted two-wheeler industry performance.

• Strategic reduction in low value-added Wheel Assembly business led to a 53.5% YoY decline in that segment, improving overall profitability.

• Bangalore facility became EBITDA positive in Q1 FY26 and is expected to reach 60% capacity utilization by Q2 and 70-75% by Q4.

• Board approved both standalone and consolidated unaudited financial results for the quarter ended 30 June 2025, with statutory auditors providing an unmodified review conclusion.

Financial highlights

• Total consolidated revenue for Q1 FY26 was Rs. 891.29 crore, up from Rs. 862.20 crore in Q1 FY25; revenue excluding Wheel Assembly grew 11.1% YoY.

• EBITDA margin reached a record 13.8%, up 183 bps YoY, driven by higher volumes, improved capacity utilization, and cost optimization.

• PAT margin rose to 7.4% (up 81 bps YoY).

• EPS increased to Rs. 3.35 from Rs. 2.88 YoY.

• Export revenue remained flat at Rs. 33 crore due to global uncertainties.

Outlook and guidance

• Mid-teens revenue growth guidance for FY26 (excluding Wheel Assembly) reaffirmed, with optimism for improved industry demand in H2 due to festive season and favorable monsoon.

• Exports expected to grow 20% YoY in FY26, despite current geopolitical headwinds.

• EBITDA margin target of 13.7% for FY26, with continued focus on cost optimization and operating leverage from new plants.

• Focus on strengthening position in the EV sector, diversifying product offerings, and expanding into PV and CV segments.

• Plans to leverage export opportunities and grow the Independent Aftermarket channel.