ASK Automotive Ltd held its Q2 FY27 earnings call on November 03, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.
Record Quarter on Revenue, EBITDA and PAT
12th consecutive quarter of robust performance since listing — Q2 FY 2026-2027 delivered highest-ever quarterly revenue, EBITDA and PAT; consolidated revenue grew 47.5% YoY, while net revenue grew 29.5% YoY excluding the 23% alloy price pass-through and 5% strategic reduction in wheel assembly.
Q2 EBITDA at Rs.185 crore (+30% YoY) with 11.8% margin — optically lower due to alloy price pass-through; PAT at Rs.102 crore (+27.3% YoY); EPS at Rs.5.15 vs Rs.4.05 in Q2 FY26.
H1 FY 2026-2027 consolidated revenue grew 49.6% YoY (net revenue +27.6% YoY excluding 27.1% alloy pass-through and 5.1% wheel assembly reduction); EBITDA at Rs.348 crore (+31.3% YoY, 11.9% margin); PAT at Rs.187 crore (+28% YoY); EPS at Rs.9.47 vs Rs.7.40 in H1 FY26.
Outperformance vs industry — net revenue growth beat two-wheeler industry production growth of 16.5% in Q2 and 19.5% in H1 FY 2026-2027.
Trade receivables increased in H1 FY 2026-2027 — driven by higher sales as well as rising aluminum prices.
Strongest-Ever Q2 Across All Automobile Segments
Management cited 7.8% GDP growth in Q1 FY27, ahead of expectations, and said GST 2.0 reforms have improved affordability across vehicle segments; every automobile segment recorded its highest-ever Q2 domestic sales in Q2 FY27.
Per CM data cited by management, overall vehicle production grew 20.3% YoY in H1 FY27; two-wheeler domestic production rose 19.5% to 153.7 lakh units (vs 128.6 lakh in H1 FY26), with Q2 FY27 at 81 lakh units (vs 69.5 lakh in Q2 FY26).
Management expects further demand support from the 8th Pay Commission, new model launches and a gradual replacement cycle, with the festive season underway and consumer sentiment improving.
On the Narnolia analyst's estimate of ~24 million two-wheeler industry volumes in FY 2026-2027, management pointed to strong money circulation in the economy and said two-wheeler demand shall remain.
Management does not expect ~20% industry growth to sustain — it expects industry growth of ~10% in FY28 (FY 2027-2028), while noting OEM customers are currently "very bullish" and expanding capacities.
ALPS Leads; Exports Running Well Ahead of Guidance
Export revenue up 133.3% YoY to Rs.70 crore in Q2 (vs Rs.30 crore in Q2 FY26) and up 74% YoY to Rs.109 crore in H1 (vs Rs.63 crore in H1 FY26); segment 3 cited Rs.100 crores for H1 — minor discrepancy across segments.
Exports grew 75% YoY in H1 vs ~20% FY 2026-2027 guidance set at the start of the year; management is "very confident" of crossing the Rs.180 crore FY 2026-2027 export target (up from a Rs.145 crores base) but did not confirm crossing Rs.200 crores; geopolitical situation cited as the key uncertainty.
Exports on track to grow more than 25% YoY on average in FY 2026-2027; management stated it has clarity to grow "even much faster" in FY 2027-2028, with detailed export guidance to be provided in Q3 FY 2026-2027.
Honda remains the leading customer at ~35% of total revenues, with slightly higher content per vehicle; ASK will grow in line with Honda's vehicle growth across all models. Analyst noted (industry context) Honda is expanding capacity and launching 10 new models in FY 2027-2028.
Aftermarket contributes ~11% of overall revenue, growing in line with the company and generally outgrowing the brake segment; no midterm growth target given.
ALPS outperformance attributed to OEM customers outgrowing the industry — management noted players with capacity are winning business; no split provided between new customers vs higher business from existing customers.
Japanese OEM Ramp Underway; Rs.700 Cr FY27 Capex Budgeted
HPDC alloy wheel supplies to a leading Japanese customer commenced 3 August 2026 under technical collaboration with Kyushu Yanagawa, Japan — the first introduction of HPDC alloy wheels in two-wheelers in India; supplies are running daily.
Management expects ~Rs.80 crores of alloy wheel supplies in FY 2026-2027 and orders worth Rs.240 crores in FY 2027-2028 from this single customer; alloy wheel EBITDA margins will remain in sync with company overall margins as supplies ramp through FY 2027-2028.
Second Indian OEM customer's alloy wheel (a safety item) is in final-stage testing; additional supplies expected only in FY 2027-2028 once testing breaks through — revenue potential not quantified. Initial HPDC supplies are to Indian OEMs only (domestic-first approach), with exports positioned as a later-stage opportunity.
19th plant commissioned for friction material (brakes) expansion; the 20th plant — the fourth in Bangalore — is slated for commissioning on 14th-15th January (FY 2026-2027), driven by south-based customer orders. The previous plant (~Rs.380 crores investment) is running at 90% capacity utilization.
FY 2026-2027 capex budgeted at Rs.700 crores — a portion may slip if machine deliveries arrive around 7th April; a further Rs.500 crores of capex is planned in FY 2027-2028.
Capex funded from internal accruals — CMD Kuldeep Singh Rathee cited H1 FY 2026-2027 EBITDA of Rs.348 crores as evidence of sufficient internal cash generation and at least Rs.500 crores/year invested on average over the last 4 years; debt-equity is kept around 0.5 and debt at roughly 1x annual EBITDA as standing policy, with debt repayment "no question at all" given 32 years of cash generation.
Q2 FY 2026-2027 EBITDA margin adjusted for abrupt aluminum price increases would be ~13.5% or higher; management reaffirmed FY 2026-2027 guidance of margins inching up to ~13-14%.
Absolute EBITDA grew 30% in Q2, in line with net revenue growth — management characterized percentage compression as a "denominator effect" from aluminum prices and advised tracking absolute EBITDA instead; alloy price volatility may still affect EBITDA margin percentage.
Other expenses rose in Q1 and further in Q2 FY 2026-2027 — CFO Naresh Kumar attributed the elevation primarily to contractual labor charges; CMD quantified a 35% minimum wage increase in the Haryana region following minimum wage hikes in Haryana and other states. No explicit guidance given on moderation in FY 2026-2027.
H2 FY 2026-2027 margin trajectory guided broadly flat to "little better only" — conditional on aluminum prices remaining at current high/stable levels; the CMD does not expect margins to fall under this scenario.
HPDC vs ALPS margin spread — management said EBITDA margins are "very close" across the two segments, effectively the same; no quantified spread disclosed.
EV Mix Rising; High-Teens FY27 Growth Reaffirmed
EV revenue contribution rose to 5.9% in H1 FY 2026-2027 from 4.8% in H1 FY 2025-2026 — still below industry two-wheeler EV penetration of 10%; growth held back as initial main EV customer Ola "is not doing that well at the moment," though management cites big breakthroughs with other EV customers.
EV kit value premium of ~1.3x-1.4x — ~Rs.950 for ICE vs ~Rs.1,250-1,300 for EV (Q2 FY 2026-2027 levels, overall including ALPS); management expects to gain once the EV transition takes place. EV customer base spans Ola, Ather, TVS, Hero and Bajaj, with limited share from Bajaj at present.
Management concurred industry-wide two-wheeler EV penetration looks set to rise from 10% to 20% in 2 years (≈FY 2028-2029), citing customer feedback that the transition will be faster now due to environmental reasons and other factors; Joint MD Aman Rathi attributed the company's EV mix shift to industry-wide EV penetration growth, moving in line with the industry. No quantified medium-term EV revenue target was provided.
New EV products are being added to the portfolio per the CMD, without named categories or timelines; on mix through ~FY 2029-2030, the CMD expects EV share of revenue to gradually increase and ICE to gradually decline (period unspecified), noting the overall two-wheeler population is also increasing.
High-teens revenue growth guidance for FY 2026-2027 reaffirmed — on a net revenue basis excluding the alloy pass-through — despite the post-GST 2.0 higher base in Q3 and Q4 of FY 2025-2026 and the current geopolitical situation; management pushed back on H2 slowdown concerns, saying all its customers are "very bullish" on H2.
CMD reaffirmed in closing that the company will achieve all targets communicated for full-year FY 2026-2027 (no numeric guidance restated) and expressed optimism that FY 2027-2028 "looks very promising" — a qualitative outlook with no numeric targets attached.
Disclaimer: This earnings call summary is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.
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