ASAL - Automotive Stamp

📊 NSE: ASAL 🏢 Auto Ancillaries 📅 Last Updated: 12/13/2025 18:46

💰 Financial Performance

Revenue Growth by Segment

Single segment: Automobile components. Revenue decreased 11.93% YoY to INR 775.28 Cr in FY25 from INR 880.33 Cr in FY24.

Geographic Revenue Split

100% domestic (India), with manufacturing operations located in Pune, Maharashtra and Pantnagar, Uttarakhand.

Profitability Margins

Operating margin expanded to 6.2% in FY25 from 5.8% in FY24. Net profit margin (PBT basis) was 2.16% in FY25 compared to 2.29% in FY24.

EBITDA Margin

EBITDA margin improved to 6.6% in FY25 (INR 51.35 Cr) from 5.9% in FY24 (INR 51.71 Cr) due to a better product mix and cost-saving measures.

Capital Expenditure

Planned capital expenditure of INR 70-80 Cr for FY 2024 and FY 2025 focused on capacity enhancement and maintenance.

Credit Rating & Borrowing

Parent company TACO is rated CRISIL AA/Positive. ASAL's financial risk profile is improving, with net worth turning positive (INR 8 Cr) in FY25 after years of losses. Finance costs were INR 14.90 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Steel and sheet-metal components, which accounted for 73.47% of total sales (INR 569.63 Cr) in FY 2024-25.

Import Sources

Sourced locally from the vicinity of manufacturing plants in Maharashtra and Uttarakhand to minimize supply chain risks.

Capacity Expansion

Current capacity not disclosed in units; planned expansion through INR 70-80 Cr capex in FY24-25 for capacity enhancement and maintenance.

Raw Material Costs

Raw material costs were INR 569.63 Cr (73.47% of revenue) in FY25, down from INR 682.55 Cr (77.53% of revenue) in FY24, reflecting a 16.5% YoY decrease in absolute material spend.

Manufacturing Efficiency

Operating leverage gains from volume-driven growth; capacity utilization is expected to improve over the medium term.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

ASAL plans to achieve growth through a INR 70-80 Cr capex program for capacity enhancement, increasing the share of high-margin EV components like battery trays and cooling tubes, and diversifying its customer base beyond the current 80% concentration in Tata Motors.

Products & Services

Sheet-metal stampings, welded assemblies, modules, battery trays for electric vehicles (EV), aluminum cooling tubes, fabrication parts, and tooling.

Brand Portfolio

ASAL, Tata AutoComp.

New Products/Services

Battery trays for electric vehicles (EV) and aluminum cooling tubes, which contributed to a 40 bps expansion in operating margins in FY25.

Market Expansion

Targeting new OEM clients to reduce dependence on the Tata Group.

Strategic Alliances

Joint Venture with Tata AutoComp Systems Ltd (TACO), which holds a 75% stake.

🌍 External Factors

Industry Trends

The auto industry is cyclical and currently transitioning to EVs. ASAL is positioning itself for this shift by developing EV-specific components. Industry growth is expected to moderate as pent-up demand wanes.

Competitive Moat

Strong parentage (Tata Group) and 75% ownership by TACO provide a captive customer base and financial support (unsecured loans), creating a durable competitive advantage.