Key Financial Figures

Q2 FY27 Performance:

  • Revenue: ₹38,280 crores (27% YoY growth, 9% sequential growth)
  • EBITDA: ₹3,353 crores (23% YoY growth)
  • EBITDA Margin: 8.8% (vs 9.0% in Q2 FY26, 20 bps contraction)
  • Normalized PAT: ₹1,175 crores (37% YoY growth)

H1 FY27 Performance:

  • Revenue: Exceeded ₹73,500 crores (22% YoY growth)
  • EBITDA: ₹6,457 crores (25% YoY growth)
  • EBITDA Margin: 8.8% (20 bps improvement YoY)
  • Normalized PAT: ₹2,207 crores (45% YoY growth)

Operational Highlights

Market Context:

  • Global light vehicle production declined 2.3% YoY
  • China declined 5.5%, North America declined 3.8%, Europe declined 0.6%
  • India grew 15% YoY
  • Commercial vehicle production grew 7.6% globally (North America +43.6%, India +18.9%)

Business Performance:

  • Booked business reached all-time high of $106 billion (CAGR of ~13% from FY23 to H1 FY27)
  • Wiring harness business grew 68% YoY
  • Aerospace business grew more than 20% YoY
  • Consumer electronics business showed robust revenue growth and improved profitability

Capital Expenditure:

  • Q2 FY27 Capex: ₹1,971 crores
  • H1 FY27 Capex: ₹3,585 crores (56% of H1 EBITDA)
  • Full-year guidance: ₹6,000 crores (±10%)
  • 60% of capex earmarked for non-automotive businesses

Acquisitions Integration:

  • Autoelectric (wiring harness) integrated for full quarter
  • Yutaka Giken (exhaust systems, brake discs) integrated for two months
  • Combined annual revenue potential: ~$2 billion
  • Margins currently slightly below group level

Facility Expansion:

  • 17 facilities at various development stages
  • 10 facilities expected operational in current financial year
  • All expansions in emerging markets
  • New PCB manufacturing facility became operational (backward integration for lighting/vision systems)
  • GF3 plant commenced trial production, commercial production scheduled in Q4 FY27

Balance Sheet Position

  • Effective net debt: ₹11,292 crores (vs ₹9,757 crores at June end)
  • Increase due to higher working capital (copper price increase), higher capex, and lease liabilities from acquisitions
  • Leverage ratio stable at 0.8x (within policy ceiling of 2.5x and internal aspiration of <1.5x)
  • Liquidity: ₹1,747 crores
  • Comfortable debt maturity profile

Management Commentary

Strategic Priorities:

  • Support customers
  • Improve performance of existing businesses
  • Realize synergies from recent acquisitions
  • Pursue sustainable long-term value opportunities

Operational Focus:

  • Cost optimization initiatives
  • Automation (1,000+ projects pipeline, 940 projects identified)
  • Input cost pass-through to customers
  • Operational efficiency and excellence

Diversification Strategy:

  • Non-automotive businesses contributing to portfolio diversification
  • 3CX10 strategy: no country, customer, or component >10% of business
  • Focus on emerging markets for organic growth

Segment-specific Updates

Wiring Harness Business:

  • Autoelectric acquisition provides passenger vehicle wiring harness capability globally
  • Major customers: BMW, Daimler, Porsche, Audi
  • Engineering and co-design capabilities enhanced

Modules and Polymer Division:

  • Global product with technology openness
  • Success in Indian market with new customers
  • Reorganization initiatives showing financial improvement

Vision Systems:

  • Regulatory developments around AIS-184 (driver drowsiness monitoring)
  • Investment in Autocruis (China startup) for commercial vehicle technologies

Emerging Businesses:

  • Aerospace: Strong growth trajectory, acquisition of Rotary Connectors
  • Medical: First plant operational in Chennai, acquisition of Irillic (diagnostics)
  • Consumer Electronics: GF3 plant nearing commercial production
  • Humanoids: Nascent industry with concept-phase revenue

Forward-looking Statements

  • Positive momentum in commercial vehicle production expected to continue in H2 FY27
  • Continued focus on 40% ROCE target
  • Investor Day planned for next year at 2.5-year mark of Vision 2030
  • Multiple acquisition opportunities in pipeline, particularly in aerospace