Automotive Axles Q1 FY27 Results (NSE: AUTOAXLES)
Signal: Steady quarter
The read
The quarter shows a positive earnings inflection: PAT rose 27.6% YoY to ₹455.96 million and EBITDA margin was 13.6%, but the 22.2% QoQ revenue decline and raw-material intensity rising to 74.4% leave the durability of the margin expansion unconfirmed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹516.82 Cr | +5.6% | -22.2% |
| EBIT | ₹61.7 Cr | N/A | |
| Net profit | ₹45.6 Cr | +27.6% | |
| EPS | ₹30.17 | +27.7% | |
| EBIT margin | 13.6% |
P&L walk
Revenue increased 5.6% YoY to ₹5,168.21 million but fell 22.2% QoQ; gross margin expanded to 35.4% despite raw materials rising to 74.4% of revenue, while EBITDA margin was 13.6% and PAT grew 27.6% to ₹455.96 million.
Key positives
- PAT increased 27.6% YoY to ₹455.96 million, materially ahead of revenue growth of 5.6%.
- Gross margin expanded 313bps YoY to 35.4%, although the filing does not disclose the reason.
- EPS grew 27.7% YoY to ₹30.17, tracking PAT growth and showing no material dilution signal.
- Finance costs remained low at ₹4.19 million, equivalent to approximately 0.1% of revenue.
Key concerns
- Revenue declined 22.2% QoQ to ₹5,168.21 million, reversing the prior quarter's higher base.
- Raw materials consumed rose 377bps YoY to 74.4% of revenue even as gross margin expanded, making the margin improvement difficult to attribute from the filing.
- Employee benefits expense increased 20.1% YoY to ₹415.69 million, well above revenue growth of 5.6%.
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