Automotive Axles Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with the stock exchanges. The report outlines the company's environmental, social, and governance (ESG) performance, including a strategic target to source 90% of its total power consumption from renewable energy by 2028. The company reported exports of ₹2,189.62 million, which accounted for 10.05% of its total turnover for the year.

Operational and Financial Overview

The company operates on a standalone basis with 7 plants and 1 office nationally. It serves the commercial vehicle industry, with rear and front axles contributing 58.31% to its turnover and brakes contributing 25.13%. The total workforce comprised 337 employees and 3,005 workers as of the end of the financial year. The company’s paid-up capital stands at 151.12 Million.

Sustainability and Environmental Initiatives

Automotive Axles has set several sustainability goals, including converting gas-fired furnaces to electric heating systems and striving for water positivity through rainwater harvesting. The company reported total energy consumption of 176,745.702 GJ for FY26, with an energy intensity of 83.067 GJ/Crore of turnover. Water consumption stood at 147,950 kiloliters, with an intensity of 69.533 kiloliters/Crore of turnover. The company generated 7,950 metric tons of waste, of which 7,916 metric tons were recycled.

Governance and Compliance

The Board of Directors oversees the implementation of Business Responsibility policies, with Mr. Nagaraja Gargeshwari, President & Wholetime Director, responsible for decision-making on sustainability issues. The company reported no material non-compliances with the National Guidelines on Responsible Business Conduct (NGRBCs) principles during the year. However, it disclosed penalties amounting to ₹50,000 and ₹569 related to factory accidents and provident fund dues, respectively.

Social and Employee Welfare

The company spent 0.38% of its total revenue on employee well-being measures. It provided health and accident insurance to 100% of permanent employees and workers. The report indicates that 96% of permanent employees and 10% of workers received training on human rights issues. The company also engaged in various CSR activities, focusing on healthcare, education, and skill development, benefiting over 130,000 persons.

Automotive Axles Limited reported a 5.0% increase in revenue to ₹22,099 million for the financial year ended March 31, 2026, compared to ₹21,048 million in the previous year. Profit after tax increased to ₹1,644 million, reflecting disciplined execution and operational excellence. EBITDA stood at ₹2,573 million, representing a margin of 11.8%. The company maintained healthy capacity utilisation levels of around 90% while achieving delivery performance exceeding 95%.

The Board of Directors has recommended a final dividend of ₹32 per equity share, or 320%, for the financial year 2025-26, subject to shareholder approval. This is an increase from the previous year's dividend of ₹30.50 per share. The total dividend outflow aggregates to ₹483.58 million. The record date for determining dividend entitlement is Wednesday, August 5, 2026. The 45th Annual General Meeting is scheduled for Wednesday, August 12, 2026, at 3.00 P.M. IST via video conferencing.

Key Financial Highlights

The company has advanced its manufacturing transformation journey through investments in automation and digitalisation. Key initiatives included the ramp-up of advanced axle platforms like the MS185 programme. The company also achieved a significant milestone by sourcing more than 90% of its electrical energy requirements from renewable energy sources. The capacity expansion programme is expected to be completed by the end of calendar year 2026.