Automotive Axles has announced its Q3FY26 financial results for the quarter ended December 31, 2025, showing revenue growth alongside strategic leadership appointments. The automotive components manufacturer reported mixed financial performance while implementing key organizational changes to strengthen its management structure. The company also conducted its earnings conference call on February 6, 2026, providing detailed insights into operational performance and market outlook.

Financial Performance Overview

The company's Q3FY26 results demonstrate revenue growth with operational challenges reflected in profitability metrics. An exceptional item related to new labour code implementation significantly impacted the quarter's financial performance.

Revenue Growth and Operational Metrics

Revenue from operations increased to ₹5,622.94 million in Q3FY26 compared to ₹5,307.44 million in Q3FY25, representing growth of ₹315.50 million. Total income reached ₹5,709.22 million versus ₹5,367.66 million in the corresponding previous quarter, driven by both operational revenue growth and higher other income. Sequential quarter revenue growth was 21%, while EBITDA margins improved by 52 basis points quarter-over-quarter.

Exceptional Item Impact

The company recorded an exceptional item of ₹119.87 million during the quarter related to the implementation of new Labour Codes notified by the Government of India. This one-time charge resulted from increased gratuity and leave liabilities arising from changes in employee benefit regulations, significantly affecting the quarter's profitability.

Leadership Appointments

The Board of Directors approved key leadership changes effective February 4, 2026. Mr. Raman K, currently serving as Sr. General Manager - Finance, has been appointed as Interim Chief Financial Officer. He brings 15 years of experience in global organizations across automobile and electronics industries, with expertise in corporate finance, business partnering, and investor relations.

Senior Management Changes

The company announced several changes in its Senior Management Personnel structure:

Earnings Conference Call Highlights

During the February 6, 2026 earnings call, management provided detailed insights into Q3FY26 performance and market outlook. The call was hosted by Batlivala & Karani Securities with key management including Mr. Nagaraja Gargeshwari (President and Whole Time Director), Mr. Raman K (Interim CFO), and Mr. Kishan Kumar (Whole-Time Director, Meritor HVS India).

Market Outlook and Product Portfolio

Management expressed optimism about Q4FY26, expecting industry growth of 5-10% compared to the previous year. The company operates at approximately 80% capacity utilization and confirmed no capacity constraints for meeting current demand. Key product developments include the MS185 axle gaining market traction and new brake technology (394 brake) entering production.

Business Segment Performance

The company's revenue mix comprises approximately 80% from MHCV (Medium and Heavy Commercial Vehicles) segment and 15-25% from exports, defense, and off-highway segments. Management noted that export revenues have faced challenges, contributing to the variance between company growth and overall industry growth rates.

Nine-Month Performance

For the nine months ended December 31, 2025, the company achieved revenue from operations of ₹15,134.30 million compared to ₹15,178.95 million in the corresponding previous period. Net profit for the nine-month period stood at ₹1,104.81 million versus ₹1,096.08 million, showing marginal improvement despite the exceptional item impact.

Automotive axles Limited announced that ICRA Limited has reaffirmed the company's credit rating, maintaining its strong financial standing in the automotive components sector. The rating agency communicated this decision through its letter dated February 2, 2026, as disclosed by the company under regulatory requirements.

Credit Rating Details

ICRA Limited reaffirmed Automotive Axles Limited's credit rating at [ICRA]AA-(Stable)/[ICRA]A1+ for its banking facilities. The rating action covers the company's comprehensive financial arrangements with multiple banking partners.

Banking Facility Distribution

The total rated amount of Rs. 135.0 crore is distributed across three major banking institutions, providing the company with diversified financial support.

Regulatory Compliance

The company made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was signed by Debasis Panda, Company Secretary & Compliance Officer, demonstrating the company's commitment to maintaining transparency with stakeholders and regulatory authorities.

Rating Surveillance and Conditions

ICRA Limited noted that the reaffirmed ratings will become due for surveillance within one year from the date of the rating communication letter. The rating agency reserves the right to review and revise the ratings based on new information or changing circumstances that could impact the company's creditworthiness. The ratings are specific to the current terms and conditions of the instruments, and any changes would require a review by ICRA Limited.