Key Financial Figures - Q2 FY27 Performance

Consolidated Performance:

  • Total income: ₹4,811 crores (33% YoY growth)
  • EBITDA: ₹584 crores (17.3% YoY growth)
  • EBITDA margin: 12.1%
  • PAT: ₹274 crores (21% YoY growth)
  • PAT margin: 5.7%
  • Net cash position as of 30th September 2026: ₹436 crores

Standalone India Performance:

  • Total income: ₹3,761 crores (40% YoY growth)
  • EBITDA: ₹395 crores (18% YoY growth)
  • EBITDA margin: 10.5%
  • PAT: ₹213 crores (14% YoY growth)
  • PAT margin: 5.7%
  • RMC to sales: 70% (4% increase YoY)

European Business Performance:

  • Total income: ₹1,029 crores (13% YoY growth)
  • EBITDA: ₹183 crores (13.7% YoY growth)
  • EBITDA margin: 17.8%
  • PAT: ₹57 crores (39.6% YoY growth)
  • PAT margin: 5.5%
  • Turnover: €93.9 million (5.9% YoY increase)

Exceptional Items:

  • Gain of ₹36 crores from early acquisition of remaining 32% stake in Stöferle
  • Offset by accelerated depreciation of ₹31 crores for an OEM program in Europe
  • Without these items, European net profit would have been €2 million

Maxwell Subsidiary Performance:

  • Q2 FY27 revenue: ₹85 crores (95% YoY growth, 50% QoQ growth)
  • H1 FY27 turnover: ₹141 crores (vs ₹161 crores in full FY26)
  • PAT positive in consecutive quarters

Strategic Developments and Acquisitions

Stöferle Acquisition:

  • Accelerated acquisition of remaining 32% stake, taking ownership to 100%
  • Acquisition cost: €18 million for 32% stake
  • Benefit of €3.1 million recognized in P&L

Fondalpress Acquisition:

  • Acquired 100% stake in Italian company for net outlay of under €1 million
  • Acquisition price: €12.3 million with €10.2 million cash and €2.5 million stock
  • Includes 16,400 sqm building, 16 automated die-casting machines (2,300-2,800 ton)
  • Historical revenue over €60 million, highly profitable
  • Strategic rationale: Strengthen aluminum casting capabilities, enable insourcing for Stöferle, entry into truck segment

Veicoli Divestment:

  • Divested stake for €2.2 million upfront plus future earn-outs
  • Business: Fleet management software (niche but small)

Capacity Expansion and Capex

FY27 Capex Guidance:

  • India capex: ₹1,100 crores
  • Consolidated capex: ₹1,250 crores
  • FY26 India capex: ₹800 crores (vs ₹611 crores in FY25)

Specific Capacity Additions:

  • ABS capacity: 1.54 million units annually by Q4 FY27 (70% booked by Bajaj Auto and Royal Enfield)
  • Dual channel ABS supplies to Bajaj Auto started October 2026
  • Royal Enfield SOP expected Q4 FY27
  • Chennai disc brake assembly plant SOP: March 2027
  • Waluj brakes plant: Added 1 million units capacity, SOP started Q2 FY27
  • Aluminum forging: Adding fifth press with SOP expected Q4 FY27

Business Segments and Order Wins

EV Business:

  • India standalone EV sales: ₹229 crores in Q2 FY27 (185% YoY growth)
  • 5% of total net sales
  • Order book EV share: 24% in H1 FY27 vs 11% in FY22

4W Business:

  • Order book 4W share: 23.5% in H1 FY27 vs 16% in FY22
  • Expanding at Shendra, Chakan, Chennai, and Vallam plants
  • AURIC Shendra plant SOP: 25th September 2026 (serving India, UK, US OEMs)
  • Supplies to US EV OEM commenced

New Order Wins - H1 FY27:

  • Total business win: ₹748 crores (excluding Bajaj orders)
  • Key customers: HMSI, Tata Motors, Hero MotoCorp, TVS, Ather, US EV OEM
  • Total business won since FY22: ₹6,372 crores (₹5,125 crores new business)
  • ₹3,798 crores still to be realized

European Order Wins:

  • €28 million new orders in H1 FY27
  • €10 million order from Mercedes for hybrid car (SOP 2027)
  • €4 million order from Stellantis for car and LCVs (SOP 2027)
  • €14 million from Mercedes for hybrid LCV components (SOP 2029)

New Business Initiatives

Battery Pack Business:

  • Commenced SOP for leading 2W OEM with full ramp-up expected Q3 FY27
  • Letters of nomination from two passenger vehicle OEMs for 4W battery packs
  • SOP scheduled for Q1 and Q2 FY28 respectively
  • High-value business with good ROCE
  • Capacity: 18,000 battery packs/month for 2W, 8,000/month for 4W

4W Proprietary Products:

  • Suspension: Advanced engagement with 2 Indian and 1 overseas customer
  • SOP expected H1 FY28 and H2 FY29
  • Brakes and driveshaft: Commencement of SOP for driveshaft in Q3 FY27, brakes from H1 FY28
  • Expected cumulative SOP: ₹100 crores in FY28 to ₹800 crores in FY31

Non-Auto Business:

  • Includes solar, railways, industrial applications (suspension, actuators)
  • Solar damper plant at Sanand, Gujarat operational
  • SOP for European client started Q2 FY27
  • SOP for US client expected H2 FY27
  • Solar actuators SOP expected Q4 FY27
  • Expected cumulative SOP: ₹250 crores in FY28 to ₹650 crores by FY31

Transmission Segment:

  • Increasing 'assist and slip clutches' business with Adler's technology
  • Supplying to Royal Enfield and Kawasaki
  • Bajaj Auto validation in process, SOP expected Q4 FY27
  • Driveshaft: SOP for Tata Motors expected Q3 FY27
  • 3W driveshaft supplies to Bajaj, Mahindra, TVS
  • Driveshaft revenue expected to cross ₹100 crores in FY27

Premium Segment and Aftermarket

Premium Suspension:

  • Growing upside down forks and monoshocks
  • Reaching 100,000 units/month milestone by Q4 FY27
  • Spread across 7 OEM customers including exports

Aftermarket Business:

  • India aftermarket grew 36% YoY in Q2 FY27
  • 4% of consolidated income
  • Margin-accretive business

Incentives and Tax Benefits

Maharashtra Package Scheme of Incentives 2019:

  • Incentive increased from ₹600 crores to ₹858 crores
  • Availed through state GST refund over 7-year period
  • H1 FY27: ₹75 crores income booked
  • H2 FY27: Expected ₹50 crores to be booked

Management Commentary and Outlook

Commodity Outlook:

  • Q3 FY27: Steel prices expected to increase, aluminum alloy prices softening
  • Overall 0.6% lowering of RMC percentage to sales expected in Q3
  • Customer price increases settled from Q3 FY27 or 1st October 2026 onwards
  • 0.5% positive impact on gross margin from price increases

Margin Outlook:

  • Greenfield facilities negative PBT margin drag of 0.5% in Q2
  • Expected to reduce progressively, positive contribution in FY28
  • Margin trajectory expected to improve from Q3

European Market Outlook:

  • EU auto market grew 5.6% YoY in Q2 FY27
  • Chinese OEM impact: SAIC grew 23%, BYD 133%, Geely 26%, Chery 215%
  • Regulatory changes: 350,000 vehicle cap on Chinese hybrid imports from 1st December 2026
  • Duties: BYD 27%, Geely 29%, SAIC 45%, Tesla 18%, others 21-35%
  • Accelerator Act: 70% of non-battery components value must originate in Europe

Strategic Diversification:

  • Focus on 4W, EVs, and non-automotive expansion
  • Areas include power backup, robotics, railways, aviation, defense
  • Most areas have customer engagement at advanced stage
  • Commercial production expected within FY27 or spill over to FY28

Q&A Highlights

Margin Guidance:

  • Q2 challenging from commodity perspective
  • 0.5% positive impact from customer price increases from 1st October
  • 0.5-0.6% positive impact from favorable commodity basket
  • Some customer increases may come in Q4 or next financial year

Diversification Strategy:

  • Based on existing engineering and manufacturing strengths
  • Adding electronics and software capabilities
  • Selective partnering for technology gaps
  • Moving from component manufacturer to solutions provider

Maxwell Margins:

  • Target to reach double-digit margin in next financial year

Solar Business:

  • Customers: Spain and US
  • Asset turnover expected to be in excess of 8
  • Technology developed in-house

Bajaj Exposure:

  • Approximately 35% of group revenue

European Growth Drivers:

  • Consolidation in supply chain creating opportunities
  • Chinese OEMs may need to install production capacity in Europe
  • Endurance grew 3-4 times compared to market

Non-Auto Entry Strategy:

  • Developing organic capability and evaluating inorganic opportunities
  • Based on return on investment, margins, and target market size
  • Leveraging die casting and aluminum expertise