CIE Automotive India Q2 FY27 Results Analysis: PAT Jumps 13.9%, Core Margin Compresses 80 bps (CIEINDIA)

CIE Automotive India Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 2,633.18 Cr (+11.00% YoY) and PAT growth of +13.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 11.0% YoY and PAT 13.9% YoY, but headline earnings were flattered by a 129% YoY surge in other income and an employee-cost base effect, while core EBITDA margin compressed ~80bp to 14.20% on a ~300bp material-cost deterioration. India EBIT margin fell to 12.66%, moving away from the guided 17.5-18% EBITDA band, whereas Europe's restructuring payoff is visible with EBIT margin up 218bp YoY to 11.79% despite shrinking revenue. Near-term operating picture is moderating growth at compressed core margin, with the full-year India margin band looking difficult on the current run-rate.

Key Investment Insights

Key Positives

• Consolidated revenue grew 11.0% YoY to Rs.2,633.18 Cr
• India segment revenue grew 18.1% YoY and 8.7% QoQ to Rs.1,852.14 Cr
• PAT to owners grew 13.9% YoY to Rs.243.69 Cr; basic EPS rose to Rs.6.43 from Rs.5.64
• Europe EBIT margin expanded 218bp YoY to 11.79% (from 9.61%) on restructuring and exit from loss-making products, even as Europe revenue fell 2.9% YoY
• Growth was largely debt-free: segment net assets rose ~Rs.792 Cr YoY with segment liabilities barely moving
• Effective tax rate stable at 24.54%; finance costs negligible at Rs.3.96 Cr (0.15% of revenue)
• ICRA reaffirmed AA(Stable)/A1+ rating; NCLT order for CACIL amalgamation received in September 2026

Risk Factors

• P&L-derived EBITDA margin compressed ~80bp YoY to 14.20% (EBITDA +5.1% YoY vs revenue +11.0%)
• Material-cost ratio deteriorated ~300bp YoY to 52.43% of revenue on aluminium price pressure
• India EBIT margin declined to 12.66% from 13.38% YoY and 12.88% QoQ, moving away from the guided 17.5-18% EBITDA band
• Europe revenue fell 2.9% YoY and 14.8% QoQ amid a near-stagnant European light-vehicle market
• Other income surged 129% YoY to Rs.43.90 Cr, flattering PAT growth relative to core operating performance
• Group revenue grew only 0.5% QoQ, consistent with moderating India demand as GST-cut effects taper