This article first appeared on GuruFocus .
-
Revenue:Consolidated revenue from operations stood at INR5,557 crores, a 26% year-on-year growth.
-
EBITDA:Grew 21% year-on-year to INR572 crores, with EBITDA margins at 10.3%.
-
PAT:Profit after tax attributable to shareholders grew 24% to INR296 crores.
-
Depreciation:Increased by INR17 crores to INR177 crores.
-
Finance Costs:Rose INR2 crores to INR46 crores.
-
Share of Profit from Associates/JVs:Stable at INR48 crores.
-
Switches Revenue:INR1,335 crores, up 20% year-on-year.
-
Lighting Revenue:INR1,153 crores, up 14% year-on-year.
-
Casting Revenue:INR1,090 crores, up 32% year-on-year.
-
Seating Revenue:INR408 crores, up 28% year-on-year.
-
Green Mobility Revenue:INR542 crores, up 78% year-on-year.
-
Configured Portfolio Revenue:INR1,029 crores, up 21% year-on-year.
-
Aftermarket and Channel Revenue:INR590 crores, representing 11% of consolidated revenues.
-
International Business:Contributed around 9% of total revenues, with exports from India at approximately INR228 crores.
-
Warning! GuruFocus has detected 1 Warning Sign with BOM:532539.
-
Is BOM:532539 fairly valued? Test your thesis with our free DCF calculator.
Release Date: August 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Record quarterly revenue of INR5,557 crores, up 26% year-on-year, driven by broad-based growth across all segments.
-
Strong growth in green mobility vertical, with revenues up 78% year-on-year, reflecting robust EV adoption and new program wins.
-
Secured significant new business orders, including a global OEM for four-wheeler lighting, a new sunroof order of INR130 crores, and export orders for seating systems.
-
Continued market share gains in core segments like switches and lighting, with two-wheeler lighting benefiting from a new INR450 crore order.
-
Healthy cash generation and controlled finance costs, with most expansion funded through internal accruals, supporting a strong balance sheet.
Negative Points
-
EBITDA margin declined to 10.3% due to commodity and gas price inflation, minimum wage hikes, and margin dilution from raw material pass-throughs.
-
Profitability of associates and JVs was impacted by commodity pricing pressure, which is expected to ease only in subsequent quarters.
-
The proposed JV with Innov for e-axle technology faces regulatory delays in China, creating uncertainty for future EV powertrain plans.
-
Near-term headwinds in the alloy wheel business, including temporary moderation in penetration, though early signs of recovery are emerging.
-
Depreciation increased by INR17 crores due to new facility capitalizations, and new business wins in electronics may have lower gross margins, potentially impacting overall profitability.
Q & A Highlights
Q: Can you provide details on the competitive landscape, target vehicle segments, and market size for the new four-wheeler seating systems business? Also, how will the company outperform the industry in H2 FY27 given the high base, and what is the status of the Innovance JV? A: Sunil Bohra, Group CFO: The seating business is highly competitive, but our global partner has 60 plants worldwide and state-of-the-art technology. We cannot disclose specific vehicle models yet, but the opportunity is significant, with kit values reaching INR30,000-40,000 per car. For H2 growth, multiple new plants coming onstream will add a delta to industry growth, supported by favorable trends in alloy wheel penetration. Regarding Innovance, there is no holdup; plant construction and customer supplies continue as scheduled, with both partners aligned to ensure uninterrupted business.
Q: How do you see the ramp-up for the electric two-wheeler and four-wheeler business, particularly traction motors and e-drives? Also, how will margins recover to 11% given commodity and wage inflation, and why is there a QoQ drop in depreciation from Q4 to Q1? A: Sunil Bohra, Group CFO: We won't comment on specific sales volumes, but growth has exceeded internal expectations, and we are building capacity to meet demand. Traction motors are still a small business with two OEM customers. For margins, Q1 is typically lower, and this year was impacted by high commodity prices, which even with 100% pass-through, dilutes margins by 40 basis points. We are holding our annual guidance through automation and efficiency gains. The QoQ depreciation drop is due to the casting business's depreciation method, which starts with a lower base for new plants.
Q: What is the revenue potential of the INR320 crore CapEx for the four-wheeler seating plant? What are the ramp-up timelines for the export orders and the sunroof business? Also, why was the JV profit flat YoY? A: Sunil Bohra, Group CFO: The INR320 crore CapEx can generate more than 2x revenue at current levels. The export orders have a two-year cycle, with impact starting from end of FY28 and full realization in FY28-29. The sunroof business will start around March-April FY27 with a ramp-up phase through FY28. The flat JV profit is due to commodity price pressure that couldn't be recovered in the quarter, but we expect to bridge this gap from Q2 onwards.
Q: How big can the new four-wheeler lighting business with the global OEM become? Do you need further investment? Also, what are the export numbers and medium-term potential? And will monthly price hikes normalize gross margins faster? A: Sunil Bohra, Group CFO: The new global OEM customer is a strategic entry with decent volumes. The opportunity is large locally, and we don't require significant CapEx for this win, only line and tool investments. Exports from India grew to INR228 crores in Q1 FY27 from INR141 crores in Q4 FY26, a 60% increase. Our endeavor is to grow exports significantly, but the percentage mix depends on domestic growth. On gross margins, while commodity pass-through dilutes margins by 0.4%, new electronic business has lower gross margins but better asset turns, which should offset at the EBITDA level.
Q: What is the current status of the China JV for E-Axles? Are there any import restrictions, and what is the strategy if restrictions are imposed? A: Sunil Bohra, Group CFO: There are currently no restrictions on importing E-Axles, and we don't foresee any. Our partner is in discussions with local stakeholders to ensure we can utilize our investments and gradually localize the product. We remain confident a solution will be found, and we expect better clarity in the next quarter. The CapEx for Aurangabad and Samba Nagar remains on track.
Q: Is the casting segment facing any headwinds, and what are the expected margins? Also, will employee costs rise with new capacity? A: Sunil Bohra, Group CFO: Casting is actually seeing a tailwind with increasing alloy wheel application ratios and larger wheel sizes. It's not margin-dilutive; it has better margins than the company average due to higher capital intensity. Employee costs will rise in absolute terms with new plants, but as a percentage of revenue, we don't expect it to increase.
Q: What is the medium-term target for the export revenue mix? A: Sunil Bohra, Group CFO: Our target is to consistently increase the export percentage. Since the domestic market is growing at 20-30%, exports must outgrow domestic growth to increase the mix. Our absolute target is to double and triple exports, but the percentage depends on domestic market growth.
Q: Are we at an inflection point for the four-wheeler seating business? What is unique about the offering? Also, can you provide the alloy wheel and sensor revenue breakdown? A: Sunil Bohra, Group CFO: We are very optimistic about seating, given our globally renowned partner with 60 plants and state-of-the-art technology. We expect to win more customers as we settle into the business. For the quarter, alloy wheel revenue was INR56 crores (four-wheeler) and INR284 crores (two-wheeler), with casting at INR248 crores. Sensors contributed INR250 crores.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
