ASK Automotive Q1 FY27 Results (NSE: ASKAUTOLTD)
Signal: Margin pressure
The read
The growth inflection is real, with consolidated revenue accelerating to +52.4% YoY from +34.9% in Q4FY26, but the margin arc broke after four consecutive quarters of expansion or stability: EBITDA margin fell to 12% from approximately 13.8% YoY as raw-material cost rose 5.8 percentage points of revenue, and standalone finance costs increased 140.6% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,358.11 Cr | +52.4% | +18.4% |
| EBIT | ₹130.44 Cr | +15.4% | |
| Net profit | ₹85.12 Cr | +28.8% | |
| EPS | ₹4.32 | +29.0% | |
| EBIT margin | 12% |
P&L walk
Revenue rose to ₹1,358.11 crore, up 52.4% YoY and 18.4% QoQ, but gross margin fell to 24.4% from 30.3% as raw-material cost increased to 75.6% of revenue from 69.7%; EBITDA grew 32.7% to ₹163.58 crore but lagged revenue growth, while PAT rose 28.8% to ₹85.12 crore after a ₹2.30 crore joint-venture loss.
Segments
There is no reportable segment table, but consolidated PAT of ₹85.12 crore was ₹23.66 crore above standalone PAT of ₹61.46 crore; the subsidiary contributed reported revenue of ₹492.13 crore and PAT of ₹26.23 crore, making subsidiaries the key group-growth driver.
Key positives
- Consolidated revenue rose 52.4% YoY to ₹1,358.11 crore, accelerating from 34.9% YoY in Q4FY26.
- Consolidated PAT increased 28.8% YoY to ₹85.12 crore and EPS rose 29.0% to ₹4.32, with other income of only ₹3.03 crore and no exceptional items.
- Subsidiary contribution was material: the reviewed subsidiary reported revenue of ₹492.13 crore and PAT of ₹26.23 crore for the quarter.
- Employee and other expenses grew 27.6% YoY to ₹256.38 crore, 24.8 percentage points below revenue growth, providing a partial fixed-cost offset to material-cost pressure.
Key concerns
- Gross margin compressed 587bps YoY to 24.4% as raw-material cost rose to 75.6% of revenue from 69.7%, indicating cost absorption or insufficient pass-through.
- EBITDA grew 32.7% YoY to ₹163.58 crore, 19.7 percentage points below revenue growth, and EBITDA margin declined 180bps to 12%.
- Standalone finance costs increased 140.6% YoY to ₹5.75 crore, while standalone PAT grew only 13.0% to ₹61.46 crore and was nearly flat QoQ.
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