Call Transcription of Analyst/Investor Conference Call conducted to discuss on the "Automotive Axles Limited 4QFY26 & FY26 Financial Performance" held on Wednesday, 20th May 2026 at 09:00 AM (IST).
AUTOAXLES · price
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Automotive Axles Limited reported strong Q4 FY26 results with revenue of INR 6,643 million (up 18.5% YoY) and PAT of INR 539 million at 8% margin. For full year FY26, revenue reached INR 21,777 million (5% growth) with PAT of INR 1,643 million at 7%. The company is operating at 90%+ capacity utilization and is expanding capacity with Phase 1 expected by December 2026. Industry commercial vehicle sales closed FY26 at 480,000 units (up 16%), with the company expecting continued 400+ demand in FY27. Management reaffirmed a long-term revenue target of INR 4,000-5,000 crores with exports as a key growth lever. Technical fees to Meritor HVS are in the range of 4-4.5% of revenue. Management indicated margins should improve going forward driven by new product launches with better pricing and ongoing productivity improvements.
The company demonstrated strong execution with robust top-line growth and sustained profitability despite cost pressures. The capacity expansion underway and new product ramp-up position the company well for continued growth. Management's confidence in margin improvement from new products and productivity gains suggests better profitability ahead.