Financial Performance Highlights
Revenue Performance:
- Q1 FY27 (April-June 2026) revenue: ₹5,841.9 million
- Year-over-year growth: 22% increase from Q1 FY26
- Sequential growth: 5% increase from Q4 FY26 (Jan-March 2026) revenue of ₹5,565.7 million
EBITDA Performance:
- Q1 FY27 EBITDA: ₹818.0 million
- Year-over-year growth: 28% increase from Q1 FY26
- Sequential growth: 4.7% increase from Q4 FY26 EBITDA of ₹781.6 million
- EBITDA margin: 14% (calculated from disclosed figures)
Profit After Tax:
- Q1 FY27 PAT: ₹701.8 million
- Year-over-year change: 37.1% decline from Q1 FY26, primarily due to exceptional item in prior year (profit on sale of video solutions, access and intrusion, and communication systems under Building Technologies segment)
- PAT excluding exceptional item: 9.9% growth YoY
- Sequential growth: 23.4% increase from Q4 FY26, driven by revenue growth and higher mutual fund gains taxed at lower rate
Business Segment Performance
Year-over-Year Growth (Q1 FY27 vs Q1 FY26):
- Mobility Business: 25.7% growth
- Power Solutions: 29% growth, driven by passenger cars and off-highway segments
- Mobility Aftermarket: 9.6% growth, driven by strategic price positioning and new schemes
- 2-wheeler Business: 41.4% growth, driven by value-added EMS products and premium motorcycle platforms
- Consumer Goods: 20.9% growth, driven by strong demand for tools
Sequential Growth (Q1 FY27 vs Q4 FY26):
- Mobility Business: 7.5% growth
- Power Solutions: 5.8% growth
- Mobility Aftermarket: 8.7% growth, driven by lubricants, wiper systems, and spark plugs
- 2-wheeler Business: 20.5% growth, driven by higher production volumes and channel inventory replenishments
- Consumer Goods: 15.7% decline due to seasonal factors
Strategic and Operational Updates
Power Solutions Division:
- Achieved strong growth outperforming broader automotive market
- Robust demand across passenger cars, commercial vehicles, and tractors
- Engaged with partners on upcoming regulations: CAFE Phase 3 (April implementation) and ADAS in commercial vehicles (October 2027)
- Received multiple awards from OEMs including Delivery Excellence award and Business Partner of the Year
2-wheeler and Powersports Division:
- Successfully met surge in market demand with zero production disruptions
- Advanced safety systems integrated into first electric motorcycle from leading manufacturer
- Showcased innovations at ACMA Mobility Foundation Technology Show
- Honored by global 2-wheeler manufacturer for development speed and engineering support
Mobility Aftermarket Division:
- Independent aftermarket business achieved highest ever monthly sales in June 2026
- Original equipment segment delivered robust growth
- Core product categories: lubricants, batteries, spark plugs, and braking systems
- New product launches: Tulix LED lighting solutions, Prithvi heavy-duty commercial vehicle battery, PC clutches, and suspension systems
- Accelerating workshop programs and portfolio expansion
Power Tools Division:
- Strong sequential growth in construction and automotive sectors
- Online sales channels expanding share of total sales
- Strategic focus on cordless conversion, product portfolio extension, and market reach expansion
Corporate Developments
Bosch Chassis Systems Acquisition:
- Acquisition completed in July 2026
- No goodwill or amortization expense reported
- Will operate as separate subsidiary with minimal cost synergies
- Considered powertrain-agnostic product line addition
- Profitable with good growth and market share
- Consolidated results to be published starting next quarter
- Investor meet planned in November 2026 at Chakan, Pune location
Joint Ventures:
1. With TACO: e-axles production JV
- Final stages of merger control approvals
- Operational from Nashik
- Revenue expected by late 2027
- Healthy order book from both partners
2. With TSF Group: air systems JV
- Final stages of merger control approvals
- Operational from Chennai
- Customer discussions to start September 2026 at IAA auto show
Market Outlook and Guidance
Macroeconomic Context:
- RBI maintained benchmark repo rate at 5.25% in August 2026 meeting
- June 2026 retail inflation at 4.38%, within RBI's 2-6% target range
- RBI raised real GDP forecast for FY27 to 6.7% from 6.6%
Automotive Industry Outlook:
- Expects resilient 8% growth in next quarter driven by:
- Festive demand
- Stronger rural cash flows
- Ongoing infrastructure activity
- Key downside risks: monsoon variability, potential El Nino effect, geopolitical tensions
Company-specific Growth Drivers:
- Volume growth across mobility portfolio
- New product introductions
- Technology innovations including commercial vehicle ADAS
- Premiumization of vehicles
- Export growth targeting increase from current 8-8.5% level
Management Commentary Highlights
Margin Sustainability:
Factors supporting maintained margins:
- Continuous operational excellence improvements
- Increased localization content
- Favorable volume growth
- Productivity improvements
- Favorable product mix
- Worldwide purchasing organization helping manage volatile sourcing market
Localization Strategy:
- Localization plans on track with consistently increasing content
- Commitment to continue increasing localization in coming quarters
Technology Strategy:
- Supporting all technologies market demands: SDVs, electrification, CNG, ADAS
- Combustion technologies expected to continue progression with possible upgraded legislation
- No concerns about OEMs owning software/electronics architecture
Q&A Session Key Points
- Aftermarket growth sustainability attributed to strategy corrections, new products, and expanded workshop programs
- Margin improvement drivers: operational excellence, localization, volume growth, productivity, product mix
- Export target: continuous increase from current 8-8.5% level
- Commodity outlook: volatile environment, recently leveled off after strong increases
- EV strategy: integral part of mobility offering, e-axle JV with TACO for production