Automotive Axles reports stable Q2 FY26 performance despite market challenges

Automotive Axles Limited reported its Q2 FY26 financial performance, with revenue at INR470 crores, a 6% decrease from the previous quarter. For the half-year, the company achieved INR969 crores, representing a 3% decline. Despite headwinds from new legislation for M&HCVs and tariff impacts, the company maintained an EBITDA of approximately 12.4% for the quarter, an improvement from 11.7% in Q1 and 11.4% year-on-year, partly attributed to a favorable export mix and foreign exchange benefits.

The company noted a changing market dynamic, with the MHCV market showing reduced cyclicality and stable volumes around 400,000-420,000 vehicles annually. New product launches, including a 15-meter bus axle and axles for electric tractor trailers and tippers, contributed to offsetting the impact of product mix shifts and a decline in the North American M&HCV market. The company also secured a silver award for Superlative Supplier Category for Aftermarket Performance from Ashok Leyland.

Looking ahead, management expects Q3 and Q4 to end strongly, potentially outperforming the previous year, with a projected 5% to 7% decline in MHCV volume for FY27. The company is actively evaluating dead axles business for tractor trailers and focusing on the electrification of buses, with new products undergoing testing and validation.