Automotive Axles Limited — Investor Meet, 09-08-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Automotive Axles (AAL) reported Q1 FY26 revenue of INR 498 Cr, with EBITDA at 11.7% and PAT at 7.3%, showing marginal profitability improvement YoY. The new business model, consolidating sales directly, is expected to yield marginal EBITDA improvement over time, though Q1 saw revenue recognition timing issues for exports. Management expects Q2 to be soft due to OEM inventory and monsoon, with recovery hoped for in H2 FY26 driven by infra projects. Bus segment product development is progressing to production. AAL is investing INR 120 Cr in capex for capacity, capability, and automation, aiming for improved productivity. Export margins could improve as service fees are not applicable to inter-company sales. The company maintains confidence in its long-term strategy and margin protection despite market volatility.