Asahi India Glass Ltd Q4 FY26 Results Analysis: EBITDA Margin Expands 449 bps, Debt-Equity Drops to 0.52x

Asahi India Glass Ltd's Q4 FY26 numbers came in strong, with revenue of Rs. 1,354.06 Cr (+14.80% YoY) and PAT growth of +44.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q4 FY26 showed accelerating revenue growth (14.8% YoY) and sharp EBITDA margin expansion of 449 bps to 21.17%, driven by a strong recovery in float glass margins (516 bps expansion). Debt-Equity improved from 0.96x to 0.52x after QIP and debt repayment. However, auto glass margins continued to compress and working capital turned negative.

Key Investment Insights

Key Positives

• Consolidated revenue grew 14.8% YoY in Q4 FY26 to Rs.1,35,406 Lakhs, accelerating from 8.6% YoY growth in the full year
• EBITDA margin expanded 449 bps YoY to 21.17% in Q4 FY26 from 16.68% in Q4 FY25
• Float Glass segment revenue surged 69.9% YoY and EBIT jumped 133% YoY, with margin expanding 516 bps to 19.05%
• PAT to owners surged 43.4% YoY to Rs.13,248 Lakhs in Q4 FY26, and normalized PAT grew 1.5% after adjusting for exceptional items
• Debt-Equity ratio improved from 0.96x to 0.52x, driven by Rs.99,435 Lakhs QIP proceeds and debt repayment of Rs.1,01,417 Lakhs
• Capex moderated sharply from Rs.1,26,798 Lakhs in FY25 to Rs.66,626 Lakhs in FY26, down 47.5%

Risk Factors

• Auto Glass segment margin compressed 148 bps YoY to 11.25% in Q4 FY26 due to higher depreciation and employee costs
• Depreciation surged 54% YoY in Q4 and 48.7% for the full year due to new capacities, compressing PAT
• Working capital outflow of Rs.32,094 Lakhs in FY26 vs inflow of Rs.7,706 Lakhs in FY25, driven by higher receivables and inventories
• ROE declined from 14.05% in FY25 to 8.76% in FY26 due to equity base expansion from QIP