Automotive Axles Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Automotive Axles Ltd filed with BSE on 22 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Automotive Axles reported Q4 FY26 revenue of INR6,643 million, up about 18% sequentially and year-over-year, with EBITDA margin of 12.4% and PAT margin of 8%. For the full year FY26, revenue grew 5% to INR21,777 million with EBITDA margin of 12.4% (10.6% after an exceptional item) and PAT of INR1,643 million. Management discussed capacity utilization near 90% in Q4, an ongoing capex program to expand capacity by December 2026, and plans to grow exports and new product lines including a heavy-duty tractor-trailer axle.
Numbers mentioned
Revenue: INR6,643 million (Q4 FY26)
p. 4
“So from a top line perspective, we ended quarter 4 with a revenue of INR6,643 million, which is comparing to sequential quarter, we were up by about 18%.”
Raman K., page 4 of the filed PDF · View the filing
EBITDA margin: 12.4% (Q4 FY26)
p. 4
“So that leaves us with a total EBITDA of INR825 million, which is about 12.4% on the revenue for the quarter ended Q4.”
Raman K., page 4 of the filed PDF · View the filing
PAT margin: 8% (Q4 FY26)
p. 4
“and our PAT stood at INR539 million at 8% PAT -- sorry, at 8% PAT -- at 8%.”
Raman K., page 4 of the filed PDF · View the filing
Revenue: INR21,777 million (FY26)
p. 4
“And coming to full year, the revenue overall for the financial year '26 was INR21,777 million.”
Raman K., page 4 of the filed PDF · View the filing
EBITDA margin: 12.4% (FY26)
p. 5
“Overall, our EBITDA for the full year is at INR2,692 million at 12.4%.”
Raman K., page 5 of the filed PDF · View the filing
EBITDA margin (net of exceptional item): 10.6% (FY26)
p. 5
“Netting of that, our EBITDA stood at 10.6% for the year.”
Raman K., page 5 of the filed PDF · View the filing
PAT: INR1,643 million at 7% (FY26)
p. 5
“and our PAT for the full financial year was INR1,643 million at 7%.”
Raman K., page 5 of the filed PDF · View the filing
Capex: more than INR70 crores (FY26)
p. 5
“So when compared to last year -- sorry, in the last financial year, we spent more than INR70 crores of capex.”
Raman K., page 5 of the filed PDF · View the filing
Net cash generated: INR30 crores (FY26)
p. 5
“we were able to generate net of investments, INR30 crores of cash that we have generated in the last financial year.”
Raman K., page 5 of the filed PDF · View the filing
Commercial vehicle industry volume (7.5 ton+): around 480,000 vehicles, 16% above FY25 (FY26)
p. 3
“And that continued and ended in even a better place now for the FY '26 full year with the market closing at around 480,000 vehicles it is 16% above FY '25.”
Kishan Kumar Udupi, page 3 of the filed PDF · View the filing
Industry tonnage: 9.4 million tonnage (FY26)
p. 12
“In terms of the industry tonnage for the full year we were at 9.4 million tonnage that is the total tonnage carrying capacity of the industry.”
Kishan Kumar Udupi, page 12 of the filed PDF · View the filing
Technical fee as % of revenue: 4% to 4.5%
p. 5
“So I think that's the broad percentage in which the technical fee operates.”
Raman K, page 5 of the filed PDF · View the filing
Capacity utilization: over 90% (Q4 FY26)
p. 7
“So the last quarter, when I look at it, it was over 90%.”
Nagaraja Gargeshwari, page 7 of the filed PDF · View the filing
Capacity utilization: 70% to 80% (April-May FY27)
p. 7
“We are still -- we generally operate somewhere between 70% to 80% of the capacity.”
Nagaraja Gargeshwari, page 7 of the filed PDF · View the filing
LCV/ICV revenue share: less than 5%
p. 11
“Maybe I would say somewhere in the single digits at this point, maybe low, less than 5%.”
Raman K, page 11 of the filed PDF · View the filing
Employee benefit expenses: INR47 crores (Q4 FY26)
p. 14
“Just on the employee benefit expenses, we had about INR47 crores for the quarter.”
Raman K, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue target — INR4,000 crores to INR5,000 crores · next 4 to 5 years
stated as an aspiration by Kishan Kumar Udupi
p. 6
“So overall, as you rightly mentioned the forecast with the domestic market growth, export and all other initiatives that we are taking up, the top line should grow in the order of rough order of INR4,000 crores to INR5,000 crores with export being a large -- better than the current contribution what we have today.”
Kishan Kumar Udupi, page 6 of the filed PDF · View the filing
Capacity expansion completion — Phase 1 and 1A capacity · end of December '26
stated firmly by Nagaraja Gargeshwari
p. 8
“So as we committed to you, the Phase 1 and I would say, Phase 1 and 1A, that's what we call is that capacity will be completed by end of December '26.”
Nagaraja Gargeshwari, page 8 of the filed PDF · View the filing
Next phase of capex planning — next 6 to 9 months
stated conditionally by Nagaraja Gargeshwari
p. 8
“And then that's what we were telling to earlier question that in next 6 to 9 months, we'll be coming and forming up our next phase of capex -- capex investment based on both the domestic and export market outlook.”
Nagaraja Gargeshwari, page 8 of the filed PDF · View the filing
Commercial vehicle industry volume — 400 plus · FY27
stated as an aspiration by Nagaraja Gargeshwari
p. 15
“The industry, as such, is in a very stable 400-plus scenario every year. And the next year as well, we are expecting it to be 400 plus.”
Nagaraja Gargeshwari, page 15 of the filed PDF · View the filing
EBITDA margin — medium term
stated as an aspiration by Nagaraja Gargeshwari
p. 14
“I would say that you can look forward to the improved our margins.”
Nagaraja Gargeshwari, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Technical fee is in the range of 4% to 4.5% of revenue depending on mix.
Answered by Raman K
Asked by Samarth: What percentage of sales is paid as technical fee to Meritor HVS?
p. 5
“Yes. I'm just giving that. So see, overall, see the technical fee is anywhere in the range between 4% to 4.5% depending on the mix of revenue that we have.”
Raman K, page 5 of the filed PDF · View the filing
Exports will be limited to subassemblies and child parts due to product line differences and regional customization requirements.
Answered by Kishan Kumar Udupi
Asked by Samarth: Will export supply be limited to subassemblies rather than fully assembled axles?
p. 6
“So it is largely going to be limited to the assemblies, subassemblies and probably child parts.”
Kishan Kumar Udupi, page 6 of the filed PDF · View the filing
Last quarter utilization was over 90%, but April-May has softened to 70-80%.
Answered by Nagaraja Gargeshwari
Asked by N Modi: What is the current capacity utilization?
p. 7
“So April and May, again, the market has softened a little bit. We are still -- we generally operate somewhere between 70% to 80% of the capacity.”
Nagaraja Gargeshwari, page 7 of the filed PDF · View the filing
There is cannibalization of rigid multi-axle products by tractor trailer axles, but overall industry headroom remains for both platforms to grow.
Answered by Kishan Kumar Udupi
Asked by Lakshmi Narayan: How does the shift toward tractor trailers impact axle demand?
p. 8
“So it will be a cannibalization of some of the products that we have in the rigid axle, multi-axle rigid axle rigid vehicle platform, getting into the 4x2 tractor trailer.”
Kishan Kumar Udupi, page 8 of the filed PDF · View the filing
Back-to-back agreements with customers protect financials from commodity inflation, with a possible lag in adjustment.
Answered by Nagaraja Gargeshwari
Asked by Lakshmi Narayan: How does rising steel/metal price inflation impact the company?
p. 9
“We always have a back-to-back agreement with most of the customers when it comes to commodity changes.”
Nagaraja Gargeshwari, page 9 of the filed PDF · View the filing
LCV/ICV contributes a small, single-digit share of revenue, less than 5%.
Answered by Raman K
Asked by Radha: What percentage of revenue comes from LCV/ICV segments?
p. 11
“Yes, Kishan. So LCV, ICV, it's a very small portion of the revenue that we have. Maybe I would say somewhere in the single digits at this point, maybe low, less than 5%.”
Raman K, page 11 of the filed PDF · View the filing
Industry tonnage was 9.4 million versus 8.7 million at the previous peak in FY19, reflecting a shift toward heavier vehicles.
Answered by Kishan Kumar Udupi
Asked by Saket Kapoor: What was the industry and company tonnage for the year, and how does it compare to the prior peak?
p. 12
“And just to give you a comparison of this versus the previous peak, which was FY19, where we also did the similar vehicle production of 476,000, was 8.7.”
Kishan Kumar Udupi, page 12 of the filed PDF · View the filing
The realization improvement is more modest, around 10% to 25%, not 2x-3x.
Answered by Kishan Kumar Udupi
Asked by Shikha Mehta: Does moving from a single to tandem axle improve realization by 2x-3x?
p. 15
“It is probably around 10% to 25% as a broad range, not more than that.”
Kishan Kumar Udupi, page 15 of the filed PDF · View the filing
Yes, all quarterly results are reported after considering the technical fee, though the exact domestic/export split was not disclosed.
Answered by Raman K
Asked by Lakshminarayanan: Is the reported operating margin already net of the technical fee, and does this apply to both exports and domestic sales?
p. 17
“Yes. No, it is all the quarters. So, all the quarter results are after considering the technical fee only.”
Raman K, page 17 of the filed PDF · View the filing
Risks flagged
Q1 and Q2 are typically a softer demand period for the industry
p. 16
“And specifically talking about Q1, Q2 of this financial year, that's a typical softer market.”
Nagaraja Gargeshwari, page 16 of the filed PDF · View the filing
Lag in passing through commodity cost increases to customers
p. 9
“There may be a little bit of a lag or lagging in that adjustment.”
Nagaraja Gargeshwari, page 9 of the filed PDF · View the filing
Temporary tariff-related disruption affecting U.S. export demand
p. 5
“Yes, in the long run, if you ignore the current -- the temporary situation that we have seen in the U.S. with the tariff, I think in the long run, the visibility is still to accumulate a good export orders and this is also part of our global supply chain strategy.”
Kishan Kumar Udupi, page 5 of the filed PDF · View the filing
Cannibalization of rigid multi-axle products by tractor-trailer platform
p. 8
“So it will be a cannibalization of some of the products that we have in the rigid axle, multi-axle rigid axle rigid vehicle platform, getting into the 4x2 tractor trailer.”
Kishan Kumar Udupi, page 8 of the filed PDF · View the filing
One-off employee cost increase from leave encashment settlement
p. 14
“So, that's had a bit of one-offs this time. So, we had some leave encashment settlement and all that happened.”
Raman K, page 14 of the filed PDF · View the filing
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