Event Type: The document contains the transcript of a post-results earnings conference call for Q1 FY27.

Date and Time: The conference call was held on Thursday, 6th August 2026 at 09:00 AM (IST).

Purpose: The stated purpose of the call was to discuss "Automotive Axles Limited to discuss 1QFY27 Financial Performance".

Management Participants: The following management participants were present on the call:

  • Mr. Nagaraja Gargeshwari – President & Whole-Time Director
  • Mr. Raman K – Interim CFO
  • Mr. Kishan Kumar – Whole-Time Director, Meritor HVS (India) Limited

Moderator: The call was hosted and moderated by Mr. Sailesh Raja from 360 ONE Capital Market Private Limited.

Availability of Materials: The company confirmed that both the transcript and audio recordings of the conference call are available on the company's website at www.autoaxle.com.

Financial Period Discussed: The call specifically discussed the financial and operational performance for Q1 FY27 (quarter ended June 2026).

Key Financial Highlights from Call:

  • Revenue from operations stood at ₹5,168 million.
  • Other income was ₹103 million.
  • EBITDA was ₹702 million, representing a margin of 13.6% (Q4 FY26: 12.4%; Q1 FY26: 9.7%). Management noted this was one of the highest EBITDA percentages ever achieved.
  • Profit After Tax (PAT) stood at ₹455 million (net of OCI: ₹452 million), a PAT margin of 8.7%.
  • EPS for the quarter was approximately ₹30.
  • The cost of raw materials (metal) was about 65% of revenue.
  • Employee benefit expenses decreased sequentially.
  • Other expenses were ₹813 million.
  • The export contribution for the quarter was 13% of revenue, with an expected annual range of 8%-12%.

Forward-Looking Statements & Strategic Themes:

  • Industry Outlook: Management revised its full-year (FY27) outlook for the Indian M&HCV industry. Initial expectations were for a 15-20% decline from FY26 volumes (~480,000 units). The revised forecast is for a 5-10% dip, with a best-case scenario of matching last year's volumes. Q4 is expected to be a peak quarter.
  • Capacity Expansion (CAPEX): The company is executing a ₹120 crore CAPEX program (Phase-1 and Phase-1(a)). Approximately 40% of this investment is already done, and some production has begun. This is expected to yield a 25-30% capacity increase to handle future market growth and export opportunities.
  • Product Launches: Management discussed several product strategies:
  • A new 160 tandem axle is in pilot batch and moving to production.
  • Bus axle development is ongoing, with a focus on meeting future pass-by noise regulations. The previous regulatory ambiguity regarding low-floor bus height is now resolved.
  • The product portfolio is aligned with market trends towards higher horsepower (300+ hp) and a shift to 4x2 tractor trailers.
  • Risks & Headwinds: Management identified the monsoon and geopolitical tensions as key headwinds that could impact the forecasted demand recovery in H2 FY27.

Additional Notes Section

  • The document is a regulatory filing submitted to the BSE and NSE, enclosing the transcript of the earnings call as an attachment.
  • The filing is signed by Mr. Debadas Panda, Company Secretary & Compliance Officer.
  • The transcript itself includes a full Q&A session with analysts, covering topics such as market share, competition (including American Axle), defense and mining segments, cost management, and the nature of the collaboration with Meritor.
  • The document contains no indication that any Unpublished Price Sensitive Information (UPSI) was shared during the call.