ASK Automotive Ltd (ASKAUTOLTD) Q1 FY27 Earnings Call: Guides High-Teens Revenue Growth, Capex Hiked to Rs. 700 Cr

ASK Automotive Ltd held its Q1 FY27 earnings call on August 04, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Revenue and Profit Mark the Quarter

• Consolidated revenue grew 52.1% YoY to Rs.1,358 Cr in Q1 FY27; excluding alloy pass-through impact, growth was 33.4%, and after removing the deliberate wheel-assembly revenue reduction, core revenue growth stood at 25.3%.
• EBITDA hit a record Rs.164 Cr (up 32.7% YoY); margin at 12% was temporarily depressed by the pass-through of higher alloy prices. PAT reached a record Rs.85 Cr (up 28.8% YoY).
• EPS for Q1 FY27 stood at Rs.4.32 versus Rs.3.35 in Q1 FY26, a 28.9% YoY increase.
• Advanced braking systems revenue rose 48% YoY; aluminium lightweighting precision solutions grew 75%; safety control cables rose 20%. Exports came in at Rs.39 Cr (Q1 FY26: Rs.33 Cr).
• The low-margin wheel assembly business was completely phased out from 1 April 2026, contributing nil revenue in Q1 FY27.

High-Teens Growth Guidance Backed by Strong Order Inflows

• Management reaffirmed high-teens revenue growth guidance for FY 2026-2027 revised upward from mid-teens guidance provided earlier. The commitment was reiterated by senior management on the call.
• Alloy wheel division has confirmed orders of Rs.70-90 Cr for FY 2026-2027 and Rs.250 Cr for FY 2027-2028, providing multi-year visibility.
• Ford Motors export orders are expected to contribute Rs.40-45 Cr in FY 2026-2027, rising to Rs.60 Cr in FY 2027-2028.
• Honda, the largest customer, is expanding capacity and planning to launch 10 new models; content per vehicle remains highest for this customer and is expected to continue in new models.
• Export guidance of 20% increase for FY 2026-2027; management remains confident despite a weak FY 2025-2026. Negotiations are ongoing with two to three players for a large export order.
• No update on the ABS mandate — it remains a draft; management will discuss only upon final notification.

Capex Hiked to ~Rs.700 Cr; New Plant in Bangalore on War Footing

• Capex guidance for FY 2026-2027 revised upward from Rs.450-500 Cr to ~Rs.700 Cr, driven by unexpected new orders and the need for a new plant in South India.
• A new plant in Bangalore is targeted to be operational before March 2027 (Q4 FY 2026-2027), set up on a war footing due to orders from an unnamed customer.
• Karoli plant capacity utilization improved from 60-65% last quarter to 75% currently; management targets ~80% by Q4 FY 2026-2027. The Bangalore plant is running at near-optimum utilization.
• Karoli monthly revenue rose from Rs.60 Cr to Rs.110 Cr; the plant is expected to generate Rs.1,500 Cr turnover in FY 2027-2028.
• A 9.9 MW captive solar plant at Sirsa is fully operational; a second 11.55 MW plant at Bikaner is expected to be commissioned in Q2 FY27. Management guided a payback period of 5 to 5.5 years for the investment.
• Debt/equity is guided to remain under 0.5x despite an increase in debt due to working capital requirements from aluminium price movement. Internal accruals are expected to be sufficient to fund new capex, though term loans may be used for machine purchases.

EBITDA Margin Expected to Recover to 13.5-14% Range

• CFO Naresh Kumar guided sustainable EBITDA margin of 13.5-14% for FY 2026-2027, in line with historical industry norms. He noted that the Q1 FY27 EBITDA margin of 12% was temporarily depressed by alloy pass-through.
• Gross margin contracted ~300 bps recently; management expects recovery to 34% levels in the next 2-3 quarters (by Q3 FY 2026-2027), as aluminium prices have declined more than 10% from the Rs.365/kg peak.
• 100% commodity pass-through with customers is in place; no pass-through is pending. Absolute EBITDA remains the same while margin percentage fluctuates inversely with commodity prices.
• Workforce grew 25% to 9,000+ employees (from 7,000+), driven by new plants in Karoli and Bangalore. Karoli alone added 1,500+ employees, with 500 more to be recruited.
• EBITDA margin of 13.5-14% is achievable subject to geopolitical stability — management flagged the Hormuz situation as a potential risk to the outlook.

Aisin JV Ramps Up; New Product Launches Across Segments

• Aisin JV is ramping up with new product introductions; management expects some profitability by the end of Q1 FY 2026-2027, though it will not be significant as it is primarily a trading business. No significant revenue is expected from the JV in FY 2026-2027.
• Technical collaboration with Kiyoshi Yanagawa (Japan) has been successfully implemented; first supply of high-pressure die-cast alloy wheels to a Japanese customer has started.
• The alloy wheel project with a Taiwanese partner is in final stages of testing; management expressed confidence it will pass, but noted customers take time for safety items.
• Sunroof cable business has received good orders; initial supplies will start in H2 FY 2026-2027, with substantial growth expected in FY 2027-2028.
• One of two collaborations fructified one quarter ahead of the H2 FY 2026-2027 guidance, indicating faster-than-expected execution on certain partnerships.
• New orders driving capacity expansion are broad-based across ICE and EV, with a substantial EV component in the ALPS segment. Two-wheeler EV penetration is at 10-11% in the market.

Government Reforms and Industry Tailwinds Support the Outlook

• The two-wheeler industry (SIAM data) posted production growth of 22.8% YoY in Q1 FY27, reaching 72.5 lakh units versus 59.59 lakh in Q1 FY26, providing a strong demand backdrop.
• Management cited the Government of India's GST reduction on two-wheelers from 28% to 18% as a key tailwind for the sector and the company's growth trajectory.
• Medium-term industry outlook is considered supportive, driven by the Government of India's structural reforms (GST 2.0), personal income tax cuts, RBI rate actions, and expected benefits from the 8th Pay Commission.
• Two-wheeler EV segment growth for the company is similar to ICE growth because one major EV customer is underperforming, skewing the overall EV growth percentage. EV penetration is 10-11% in the market.
• The ABS mandate remains a draft regulation; management will discuss it only upon final notification, and no timeline for implementation was provided.