ASKAUTOLTD - ASK Automotive

📊 NSE: ASKAUTOLTD 🏢 Auto Ancillaries 📅 Last Updated: 12/13/2025 18:37

💰 Financial Performance

Revenue Growth by Segment

In FY 2025, the Advanced Braking System segment grew by 16%, Aluminium Light Weighting Precision Solutions grew by 28%, and Safety Control Cables achieved 14% growth. For H1 FY26, the Braking segment grew 7% YoY, Aluminium Lightweighting grew 19% YoY, and Safety Control Cables grew 4% YoY.

Geographic Revenue Split

The domestic market remains the primary driver, while export revenue for H1 FY26 stood at INR 63 Crore, a decline from INR 74 Crore in the previous year due to global geopolitical instability and tariff issues.

Profitability Margins

Net Profit Margin improved from 5.78% in FY 2024 to 6.88% in FY 2025, a gain of 107 bps. Profit After Tax (PAT) reached INR 248 Crore in FY 2025, representing a 42.5% increase from INR 174 Crore in FY 2024.

EBITDA Margin

EBITDA margin stood at 12.3% in FY 2025 (up from 10.4% in FY 2024). In Q2 FY26, margins reached 13.4%, an improvement of 124 bps YoY, driven by economies of scale and a strategic shift away from low-margin wheel assembly.

Capital Expenditure

The company has undertaken significant greenfield expansions in Karoli (Rajasthan) and Bengaluru. Annual net cash accruals of INR 300-310 Crore are projected for FY 2025 to fund ongoing capex and debt obligations of INR 70-75 Crore.

Credit Rating & Borrowing

CRISIL upgraded the long-term rating to 'CRISIL AA/Stable' from 'AA-/Positive' and reaffirmed 'CRISIL A1+' for short-term. Interest coverage ratio improved significantly to 10.54 times in FY 2025 from 8.47 times in FY 2024.

⚙️ Operational Drivers

Raw Materials

Aluminium alloy is the primary raw material. In Q2 FY26, aluminium price inflation caused a 30 bps compression in EBITDA margins and inflated reported revenue by approximately 2.5% to 3%.

Import Sources

Not explicitly disclosed in available documents, though the company notes global geopolitical risks affecting rare earths and magnets used in the industry.

Capacity Expansion

New manufacturing facilities in Karoli (Rajasthan) and Bengaluru have recently turned commercial. These plants are currently scaling up to reach an optimal capacity utilization target of 70%.

Raw Material Costs

Raw material costs are a major component of the total expenses which stood at INR 3,291.59 Crore in FY 2025. The company uses a pass-through mechanism for aluminium price increases, which protects absolute EBITDA but creates a 'denominator effect' on margin percentages.

Manufacturing Efficiency

Efficiency is being driven by higher volume-driven economies of scale and the ramp-up of new facilities. Capacity utilization is a key monitorable, currently trending toward 70%.

📈 Strategic Growth

Expected Growth Rate

20-22%

Growth Strategy

Growth is targeted through the commercialization of new plants in Rajasthan and Bengaluru, a strategic joint venture with a Japanese company, and increasing the supply of high-value-added aluminium components for the EV sector, where the company already serves 70-80% of 2W EV manufacturers.

Products & Services

Advanced Braking Systems (disc brakes, drum brakes), Aluminium Lightweighting Precision Solutions, and Safety Control Cables for automotive and non-automotive applications.

Brand Portfolio

ASK Automotive.

New Products/Services

New product development is focused on the EV segment and high-value-added precision solutions. The strategic reduction of the low-value wheel assembly business (down 53.5% in H1 FY26) is intended to shift revenue mix toward higher-margin products.

Market Expansion

The company is expanding its presence in the aftermarket and export markets to reduce dependence on domestic OEMs, though these currently contribute minimally to total revenue.

Market Share & Ranking

The company maintains market leadership in the Advanced Braking System business with a significant share of the Indian two-wheeler market.

Strategic Alliances

The company has entered into a Joint Venture (JV) with a Japanese company to commercialize new technologies and enhance its business risk profile.

🌍 External Factors

Industry Trends

The industry is shifting toward 'lightweighting' in Electric Vehicles (EVs) to extend range. ASK is positioned to benefit from this as aluminium content per vehicle increases. The 2W component industry is growing, but remains subject to regulatory shifts in emission and safety norms.

Competitive Landscape

The company competes in a consolidated market for braking systems and cables, with competition intensifying in the aluminium precision solutions space as more players pivot to EV components.

Competitive Moat

The moat is built on long-standing OEM relationships, market leadership in braking systems, and a 70-80% penetration rate in the 2W EV manufacturer base. This is sustainable due to high entry barriers in safety-critical components and the technical complexity of aluminium precision solutions.

Macro Economic Sensitivity

The company is highly sensitive to the cyclicality of the automotive industry, particularly the two-wheeler segment which drives over 90% of revenue.

Consumer Behavior

A shift toward electric two-wheelers is the primary consumer trend affecting demand, necessitating a rapid transition in the company's product portfolio.

Geopolitical Risks

Geopolitical tensions and tariff issues have recently impacted export performance, resulting in a decline in export revenue to INR 63 Crore in H1 FY26.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to automotive safety standards and changing regulations for auto components. The company must adhere to Section 148 of the Companies Act for maintaining cost records.

Environmental Compliance

The company is investing in a transition toward renewable energy to meet ESG goals, though specific compliance costs are not listed.

Taxation Policy Impact

The consolidated tax expense for FY 2025 was INR 79.75 Crore, compared to INR 56.20 Crore in FY 2024.

Legal Contingencies

Statutory auditors reported no instances of fraud by officers or employees during the year under review. No major pending court cases with specific INR values were disclosed in the provided text.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the pace of EV adoption and the stabilization of new plants in Rajasthan and Bengaluru, which currently constrain cost efficiency.