BSESal Automotive LtdHighNeutral
Announced Thu, 13 Nov · 16:48 IST

Please find enclosed the Financial results for the quarter and half-year ended September 30, 2025

Ebitda Margin CompressionResults View source PDF

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AI summary

SAL Automotive reported Q2 FY26 revenue from operations of around Rs. 10,784 lakhs, up roughly 14% from Rs. 9,441 lakhs in Q2 FY25, while H1 FY26 revenue rose about 7% to Rs. 20,787 lakhs. Segment-wise, the Agriculture Implements business grew nearly 17% in Q2 (Rs. 6,367 lakhs) and Automobile Components grew about 11% (Rs. 4,417 lakhs). However, profitability was under pressure — operating profit before exceptional items fell to around Rs. 365 lakhs in H1 FY26 from about Rs. 415 lakhs in H1 FY25, indicating margin compression as input and employee costs rose faster than revenue. The company posted a notable improvement in operating cash flow to Rs. 954 lakhs in H1 FY26 from virtually nil a year ago. The Board also approved a new satellite plant at Haridwar for seat frames and a new 1 lakh sq ft shed at Nabha for capacity expansion.

Likely market impact

Capacity expansion at Haridwar and Nabha signals confidence in future order inflows and should support medium-term growth, but shrinking operating margins despite revenue gains may weigh on near-term stock sentiment and profitability outlook.