Board Meeting Details

The Board meeting commenced at 1:00 PM and concluded at 9:00 PM on October 13, 2026.

Key Approvals

1. Unaudited Financial Results: Approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The results were reviewed by the statutory auditors, Deloitte Haskins & Sells LLP, who issued a limited review report.

2. Subsidiary Acquisition: Approved the acquisition of 8,039 equity shares of £1.00 each of Hewland Engineering Limited, UK (subsidiary) at a total consideration of £0.60 million. Also approved signing of the Shareholders Agreement subject to the acquisition.

Standalone Financial Results (Quarter Ended June 30, 2026)

  • Revenue from operations: ₹2,781.97 crore
  • Other income: ₹37.30 crore
  • Total income: ₹2,819.26 crore
  • Total expenses: ₹2,507.67 crore
  • Profit before tax: ₹311.59 crore
  • Tax expense: ₹77.54 crore (Current tax: ₹72.54 crore, Deferred tax: ₹5.01 crore)
  • Profit for the period: ₹234.05 crore
  • Other comprehensive income: ₹4.11 crore
  • Total comprehensive income: ₹238.16 crore
  • Earnings per share (Basic): ₹0.62
  • Earnings per share (Diluted): ₹0.61
  • Paid-up share capital: ₹359.29 crore

Comparative Standalone Performance

  • Revenue growth: 29.7% YoY (vs. ₹2,144.69 crore in Q2 FY26)
  • Profit growth: 168.8% YoY (vs. ₹87.06 crore in Q2 FY26)
  • Sequential performance: Revenue declined 1.2% QoQ (from ₹2,817.05 crore in Q4 FY26)

Consolidated Financial Results (Quarter Ended June 30, 2026)

  • Revenue from operations: ₹3,193.23 crore
  • Other income: ₹33.20 crore
  • Total income: ₹3,226.43 crore
  • Total expenses: ₹3,070.56 crore
  • Profit before tax: ₹155.87 crore
  • Tax expense: ₹60.16 crore (Current tax: ₹77.24 crore, Deferred tax: ₹-17.08 crore)
  • Net profit for the period: ₹95.71 crore
  • Total comprehensive income: ₹100.92 crore
  • Earnings per share (Basic): ₹0.27
  • Earnings per share (Diluted): ₹0.27
  • Profit attributable to equity holders: ₹102.03 crore

Segment-wise Performance (Consolidated)

  • Powertrain Solutions: Revenue ₹1,705.31 crore, Result ₹335.04 crore
  • Alloy and Metallics: Revenue ₹1,659.07 crore, Result ₹-25.51 crore
  • Total segment revenue: ₹3,364.39 crore
  • Inter-segment revenue elimination: ₹-171.16 crore

Hewland Engineering Acquisition Details

  • Target entity: Hewland Engineering Limited, UK (subsidiary)
  • Acquisition size: 8,039 equity shares of £1.00 each
  • Total consideration: £0.60 million (approximately ₹6.36 crore)
  • Current holding: 51%
  • Post-acquisition holding: 90%
  • Not a related party transaction
  • Timeframe for completion: Approximately 6 months
  • Payment method: Cash consideration

Hewland Engineering Financials

  • Paid-up capital (as of March 31, 2026): £20,613
  • Turnover (FY26): ₹134.92 crore
  • PAT (FY26): ₹-3.74 crore
  • Historical turnover: FY25: ₹160.49 crore, FY24: ₹148.11 crore
  • Business: Designing and manufacturing high-performance transmission and drivetrain components for performance automotive, motorsport, EV and aerospace industries
  • Incorporation date: May 29, 1957
  • Country of presence: United Kingdom

Subsequent Events

1. IPO Completion: The company completed its initial public offer (IPO) on September 23, 2026, comprising:

  • Fresh issue of 7,14,28,571 shares aggregating to ₹600 crore
  • Offer for sale of 4,70,23,809 shares by OP Munjal Holdings and 5,95,238 shares by Hero Cycles Limited aggregating to ₹400 crore
  • Issue price: ₹84 per share (face value ₹10)

2. CCPS Conversion: 2,09,71,941 compulsory convertible preference shares (CCPS) were converted into equity shares as approved by the Board on September 4, 2026.

3. ESOP Exercise: During the quarter, 951,528 ESOPs were exercised by the Managing Director and Chief Executive Officer at an exercise price of ₹10 per option (fair value ₹60.93 per option). ₹57.98 crore was transferred from Share-based Payment Reserve to Securities Premium.

4. Interim Dividend: The Board declared an interim dividend of ₹0.32 per equity share (aggregating ₹121.38 crore) for FY27 with record date April 24, 2026.

5. IPO Expenses: IPO-related expenses were allocated between the company and selling shareholders, with the company's portion adjusted against Securities Premium Account.

Labour Codes Impact

  • The company provided ₹19.59 crore as exceptional item in FY26 due to implementation of new Labour Codes
  • This impacted gratuity liability and leave liability
  • The impact is considered non-recurring

Auditor Qualifications

  • Comparative numbers for Q2 FY26 and Q4 FY26 were not subjected to limited review by statutory auditors
  • Financial results for Q2 FY26 are drawn up for the first time in accordance with SEBI listing regulations
  • Figures for Q4 FY26 are balancing figures between audited FY26 and unaudited 9M FY26 figures