ASK Automotive Limited has announced a major capacity expansion for its Advanced Braking Systems division, with the Board of Directors approving an investment of Rs. 35 crore on January 28, 2026. The expansion involves establishing two new manufacturing plants in Rajasthan to meet growing market demand for brake shoes and disc brake pads in two-wheeler applications.

Capacity Expansion Details

The company disclosed comprehensive details of the expansion project under Regulation 30 of SEBI regulations. The new facilities will significantly enhance the company's manufacturing capabilities in the braking systems segment.

Strategic Rationale and Market Positioning

The capacity expansion is driven by increased demand supported by GST 2.0 reforms, positioning the company to capitalize on favorable market conditions. With current capacity utilization at approximately 90%, the additional 6 crore pieces annually will provide substantial room for growth while maintaining operational efficiency.

Financial and Operational Impact

The Rs. 35 crore investment will be funded entirely through internal accruals, demonstrating the company's strong cash generation capabilities and financial stability. The establishment of two new plants on leased properties in Rajasthan reflects a strategic approach to geographical diversification while maintaining cost efficiency.

Timeline and Implementation

The new manufacturing facilities are expected to be commissioned in Q1 FY 26-27, indicating a relatively quick implementation timeline. This rapid deployment will enable ASK Automotive to respond promptly to market opportunities and strengthen its position in the two-wheeler braking systems market.

ASK Automotive Limited held its board meeting on January 28, 2026, addressing significant corporate governance matters and financial results for the quarter ended December 31, 2025. The meeting, which commenced at 04:30 P.M. and concluded at 05:40 P.M., covered key business decisions including financial result approvals and director re-appointments.

Financial Results Approval

The board approved both standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2025. These results were prepared in accordance with Indian Accounting Standards 34 (Ind AS-34) and have been subjected to limited review by statutory auditors Walker Chandiok & Co LLP, who expressed an unmodified conclusion.

Independent Director Re-appointments

The board approved the re-appointment of four independent directors for second terms, subject to shareholder approval. These appointments demonstrate the company's commitment to maintaining experienced independent oversight.

Business Developments

During the nine months period ended December 31, 2025, the company incorporated a new joint venture entity, ASK GTD Control Cables Private Limited, on September 15, 2025. This joint venture was established in collaboration with T.D. Holding GMBH for manufacturing and marketing of sunroof control cables and helix cables for passenger vehicles.

Regulatory Compliance

The company noted that with effect from November 21, 2025, the Government of India consolidated multiple existing labour legislations into four Labour Codes. However, the corresponding rules under these new codes are yet to be notified. Based on legal opinion and review of existing wage structure, the company estimates no material impact on financial results due to these new labour codes.

Company Profile

ASK Automotive Limited is primarily engaged in manufacturing auto components including advanced braking systems, aluminium lightweighting precision solutions, and safety control cables for the automobile industry. The company maintains substantial sales within India and operates with certifications including IATF 16949:2016, ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.