ASK Automotive Q2 FY27 Results (NSE: ASKAUTOLTD)
Signal: Margin pressure
The read
The growth inflection is strong—total income accelerated to 47.5% YoY and underlying net revenue grew 29.5%—but the margin arc has weakened for the second consecutive quarter on a YoY basis, with EBITDA margin falling to 11.8% from 13.4% as alloy-price pass-through inflated the denominator; the next thesis test is whether benign aluminium prices restore margin.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,561 Cr | 47.5% | 14.7% |
| Net profit | ₹102 Cr | 27.3% | |
| EPS | ₹5.15 | 27.3% | |
| EBIT margin | 11.8% |
P&L walk
Total income reached ₹1,561 crore, up 47.5% YoY and 14.7% QoQ, while EBITDA rose 30.0% to ₹185 crore but margin fell 159bps to 11.8% because alloy-price pass-through inflated the revenue denominator; PAT rose 27.3% to ₹102 crore and EPS tracked PAT at ₹5.15.
Segments
Advanced Braking Systems grew 46% YoY, Aluminium Light Weighting Precision Solutions led with 69% growth, and Safety Control Cables grew 33%; exports also rose 133.3% to ₹70 crore, indicating the fastest momentum is in lightweighting and international sales.
Key positives
- Total income reached a record ₹1,561 crore, up 47.5% YoY and 14.7% QoQ, while underlying net revenue growth excluding alloy-price pass-through and wheel-assembly reduction was 29.5%.
- Advanced Braking Systems grew 46% YoY, Aluminium Light Weighting Precision Solutions grew 69%, and Safety Control Cables grew 33%, showing broad-based product momentum.
- Exports rose 133.3% YoY to ₹70 crore, and HPDC alloy-wheel supply commenced for a leading Japanese customer from 3 August 2026.
- PAT rose 27.3% YoY to ₹102 crore and EPS rose 27.3% to ₹5.15, with EPS tracking PAT growth cleanly.
- The Karoli facility is ramping up and the Bangalore facility is operating at optimum utilisation, supporting the company's stated capacity-utilisation and scale-efficiency strategy.
Key concerns
- EBITDA margin contracted 159bps YoY to 11.8% and 19bps QoQ despite EBITDA growing 30.0% YoY, as alloy-price pass-through inflated the revenue denominator.
- PAT growth of 27.3% materially lagged total-income growth of 47.5%, showing that reported top-line growth is not translating proportionately into earnings while alloy prices remain volatile.
- Wheel Assembly was strategically reduced, creating a disclosed -5.0% impact on Q2 YoY growth and -5.1% on H1 growth.
Research and educational content only. Not investment advice.