Munjal Auto Industries Limited has secured a new business contract from Honda Motorcycle and Scooter India Pvt. Ltd for the manufacturing and supply of sheet metal stamping and welding parts. The award was made on May 11, 2026, and the development was disclosed to stock exchanges pursuant to Regulation 30(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was signed by Gauri Y Bapat, Company Secretary and Compliance Officer.

Contract Details

The contract awarded by Honda Motorcycle and Scooter India Pvt. Ltd is domestic in nature and encompasses a long-term supply arrangement. The scope of work includes the design and development of tooling and dies in addition to the ongoing supply of sheet metal stamping and welding parts. The key details of the contract, as disclosed in Annexure A filed with the exchanges, are summarised below:

Compliance and Disclosures

The disclosure was made in compliance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Munjal Auto Industries confirmed that none of its promoters, directors, key managerial persons, or their relatives hold any direct or indirect interest in Honda Motorcycle and Scooter India Pvt. Ltd. The company further stated that the contract does not fall within the purview of related party transactions. No reason for delay was applicable in this instance.

Munjal Auto Industries Limited , a prominent player in the auto components sector, has released its financial results for the second quarter, revealing a mixed performance with revenue growth accompanied by a decline in profitability.

Revenue Growth

The company reported a consolidated revenue of ₹58,408.65 lakh for Q2, marking a significant increase from ₹52,248.74 lakh in the same quarter of the previous year. This 11.8% year-over-year growth demonstrates the company's ability to expand its top line.

Segment Performance

Munjal Auto Industries operates in two main segments:

1. Auto Components
2. Composite Products and Moulds

The auto components segment generated revenue of ₹37,444.47 lakh, while the composite products and moulds segment contributed ₹20,964.18 lakh to the total revenue.

Profitability Challenges

Despite the revenue growth, the company faced headwinds in profitability:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined to ₹2,641.00 lakh from ₹3,070.00 lakh in the same quarter last year.
• EBITDA margin contracted to 4.52% from 5.87% year-over-year.
• Net profit decreased to ₹1,119.51 lakh, compared to ₹1,863.36 lakh in Q2 of the previous fiscal year.

Financial Position

As of September 30, Munjal Auto Industries reported:

Conclusion

Munjal Auto Industries' Q2 results show robust top-line growth but face pressure on profitability. The significant increase in revenue indicates strong demand for the company's products, particularly in the auto components and composite products segments. However, the decline in EBITDA and net profit margins suggests that the company may be grappling with increased costs or competitive pressures.

Investors and stakeholders will likely be watching closely to see how Munjal Auto Industries addresses these profitability challenges while maintaining its growth trajectory in the coming quarters.