Auto Ancillary Stock Jumps 14% After Reporting Highest-Ever Q1 FY27 Results; Revenue Rises 52%, PAT Grows 29%

On Wednesday, Indian equity benchmark indices traded marginally lower, with the benchmark Nifty 50 index declining 20.65 points, or 0.08 per cent, to 24,594.25. Amid the market movement, ASK Automotive share price jumped 13.91 per cent to Rs 628.00 after the company announced its unaudited financial results for the quarter ended June 30, 2026.

ASK Automotive Q1 FY27 Financial Performance

ASK Automotive reported its highest-ever quarterly revenue, EBITDA and profit after tax during Q1 FY27. The company reported total income of Rs 1,361 crore, compared with Rs 895 crore in the corresponding quarter last year, registering a 52.1 per cent YoY and 18.0 per cent QoQ growth.

EBITDA increased to Rs 164 crore from Rs 123 crore in Q1 FY26, resulting in a 32.7 per cent YoY and 16.8 per cent QoQ growth. However, the EBITDA margin declined to 12.0 per cent from 13.8 per cent in the year-ago quarter due to a sharp increase in alloy prices.

Profit after tax (PAT) rose to Rs 85 crore in Q1 FY27 from Rs 66 crore in Q1 FY26, registering a 28.8 per cent YoY growth. Compared with Rs 72 crore in Q4 FY26, PAT increased 19.0 per cent sequentially. Earnings per share (EPS) also increased to Rs 4.32 from Rs 3.35 in the corresponding quarter last year.
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Business Performance

The company said its reported revenue growth included a 33.4 per cent pass-through impact from the significant increase in alloy prices, while the strategic reduction in its wheel assembly business had a 6.6 per cent negative impact on revenue. Excluding these factors, the company reported an overall net revenue growth of 25.3 per cent on a year-on-year basis.

Among business segments, Advanced Braking Systems revenue grew 48 per cent, Aluminium Lightweight Precision Solutions recorded 75 per cent growth, while Safety Control Cables revenue increased 20 per cent YoY. Export revenue also rose to Rs 39 crore, compared with Rs 33 crore in the corresponding quarter last year.

Operational Developments

During the quarter, ASK Automotive successfully implemented its technical collaboration with Kyushu Yanagawa, Japan, at its Karoli manufacturing facility, and commenced the first supply of High Pressure Die Cast Alloy Wheels to a Japanese customer.

The company also said its Karoli mega manufacturing facility is ramping up rapidly, while its Bengaluru facility is operating at optimum utilisation, improving economies of scale and operational efficiencies. Additionally, its second captive solar power plant in Rajasthan is expected to become operational during Q2 FY27, supporting the company's renewable energy initiatives.

Management Commentary

Commenting on the performance, Kuldip Singh Rathee, Chairman and Managing Director, said the company delivered its eleventh consecutive quarter of robust performance since listing, achieving record quarterly revenue, EBITDA and PAT while continuing to outperform the two-wheeler industry's production growth.

He added that ASK Automotive remains focused on expanding its value-added businesses, improving production capacity utilisation and driving cost efficiencies. The management also expects EBITDA margins to improve in the coming quarters as aluminium prices stabilise and remains optimistic about sustaining growth momentum in line with continued expansion in the two-wheeler industry.

About ASK Automotive

ASK Automotive Ltd is India's largest manufacturer of brake shoes and advanced braking systems for two-wheelers, with an estimated 50 per cent OEM market share. The company also manufactures aluminium lightweight precision solutions and safety control cables, serving leading Indian and global automotive OEMs with a strong focus on EVs and exports.

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Disclaimer: The article is for informational purposes only and not investment advice.