Thank you. A very good evening to everyone and welcome to the Q1 FY27 earnings call of ASK Automotive Limited.

From the senior management, we have with us Mr. Kuldip Singh Rathee, Chairman and Managing Director; Mr.

Prashant Rathee, Joint Managing Director; Mr. Aman Rathee, Joint Managing Director; and Mr.

Naresh Kumar, Chief Financial Officer; and Mr. Manoj Sharma, Chief General Manager, Investor Relations.

Before we begin the call, I would like to mention that some of the statements made during today's call may be forward-looking in nature and hence it may involve risks and uncertainties, including those related to the future financials and operating performance of the company. Please bear with us if there is a call drop during the course of the conference call.

We would ensure that the call is reconnected at the earliest. I would now like to hand over the call to Mr.

Kuldip Singh Rathee, Chairman and Managing Director, for his opening remarks. Thank you and over to you, sir.

Thank you, Rushabh. Good evening, ladies and gentlemen.

It's my great pleasure to welcome you all to our Q1 FY27 earnings conference call. I hope you have had the opportunity to review the detailed presentation submitted to the exchanges and available on our website.

FY27 has begun on a strong note for the Indian economy, which continues to be the world's fastest growing major economy. Domestic demand remains robust, private consumption is resilient, and the Government of India structural reforms, particularly GST 2.0, continue to energize the broader economy and importantly for us, the automobile sector, given its deep forward and backward linkages.

As you are aware, after 28th February 2026, the geopolitical conflict in West Asia had created undue volatility in energy, commodity, and currency markets, and had led to a sharp, phenomenal increase in aluminum alloy prices, which affected our industry. Despite these challenges, we are optimistic that the growth momentum will remain in the coming quarters.

Now let me begin by sharing a quick overview of the broader industry, as reported by SIAM. The Indian automobile sector has carried strong momentum into the first quarter of FY27.

Overall vehicle production across all segments registered a robust year-on-year growth of 22.1% in Q1 FY27. The two-wheeler segment, which is most relevant to us, recorded production growth of 22.8% on a year-on-year basis, with total two-wheeler production of 72.5 lakh units in Q1 FY27, up from 59 lakh units in the same quarter last year.

I would remind you that in Q1 of last year, two-wheeler production had grown by just .7%. The turnaround this year is therefore significant, driven by the GST 2.0 rate reduction, the personal income tax rationalization announced in the Union Budget, successive rate cuts and liquidity measures by the Reserve Bank of India, a favorable base, and the introduction of new models.

Looking ahead, we believe the industry will continue to benefit from these far-reaching reforms, improving consumer purchasing power and easier access to vehicle financing. The monsoon deficit witnessed earlier in the season has eased on the back of rainfall in late June and early July, supporting the outlook for rural income and two-wheeler demand in the run-up to the festive season.

Before we move on to ASK's business performance, we would like to highlight that on the green energy front, as already shared with you earlier, I'm happy to update that our 9.9 megawatt solar power plant at Sirsa, Haryana has been fully operational and is delivering the sustainable operational economy for the expected lives. Our second captive solar plant of 11.55 megawatt at Bikaner, Rajasthan is ready and is expected to be commissioned in quarter two of FY27.

This reflects ASK's special focus on green energy. Moving on to business updates.

I am delighted to share with you that we had a strong performance in the first quarter in both revenue and profitability. This is the 11th consecutive quarter of robust performance by us since listing of the company.

We achieved highest ever quarterly revenue, EBITDA, and PAT. We delivered strong performance in business and recorded consolidated revenue growth of 52.1%.

Excluding pass-through impact of significant increase in alloy prices on revenue, that is 33.4%, and wheel assembly business strategic reduction, which reduced by 6.6%, overall net revenue has grown by 25.3% on year-on-year basis. We continue to outperform the two-wheeler industry vehicle production growth.

We achieved EBITDA of ₹164 crores, with 32.7% year-on-year growth. EBITDA margin at 12%, however, EBITDA percentage was impacted due to abrupt and phenomenal pass-through alloy prices.

Achieved PAT of ₹85 crore, with 28.8% year-on-year growth. This reflects the result of our continued focus on expanding value-added businesses, improving utilization of production capacities, and bringing cost efficiencies.

We have outperformed the industry growth, and our aim is to continue on this growth path on a sustainable basis with clear focus on the bottom line to enhance the shareholders' value. Volatility in alloy prices may affect margin percentages due to the denominator effect.

However, with the aluminum prices expected to remain benign in the coming quarters, we anticipate an improvement in our EBITDA margins. With strong performance, our earning per share has increased to ₹4.32 per share against ₹3.35 per share in the last year same period.

Our all three product segments performed well in terms of revenue growth. We have sustained our market leadership position in the advanced braking system.

Our advanced braking system revenue grew by 48% in Q1 on year-on-year basis. The aluminum lightweighting precision solutions revenue grew by 75% in Q1 on year-on-year basis.

The safety control cable revenue also recorded growth of 20% in Q1 year-on-year basis. Our revenue from exports were at ₹39 crore in Q1 FY27 against ₹33 crore last year.

Key updates: We are happy to share that the technical collaboration with Kyushu Yanagawa Japan has been successfully implemented at our Karoli plant, and first supply of high-pressure die-casted alloy wheel has started to our esteemed Japanese customer. Strategic closure in low-margin wheel assembly business is complete, and from 1st April 2026, wheel assembly revenues are nil.

We also remain optimistic on the medium-term industry outlook, supported by improving consumer sentiment, expected benefits from the 8th Pay Commission, and continued policy support for manufacturing and formalization through labor reforms. These structural developments provide greater confidence in India's long-term consumption and manufacturing growth trajectory.

We are confident that we'll continue to grow not only in mid-teens, but I'm confident that we'll be now growing for the full year in high teens. Thank you very much for your patient hearing.

With this, we leave the floor open for Q&A.

Congratulations, sir, on extremely strong numbers once again. Firstly, alloy price inflation impact is 33% in total revenue.

Approximately how much would be the same alloy wheel inflation impact for the braking systems division?

We have not calculated in that way, but we will let you know separately.

Sure, sir. Thank you.

It will be approximately I will put it like that, that if it is increased by 48%, then the alloy impact will be around 28% or something. How much?

Total

around. We have not calculated, as the CFO is saying.

Noted, sir. Second question on the new orders, can you indicate how much can be the revenue for alloy wheel in FY27 and '28, and also for the Ford order for the current year and next year?

If you can throw some colors if there has been any more order wins.

Alloy wheel, as I have explained earlier, we have confirmed orders of about ₹70 to ₹90 crores depending on how we gear up and how the customer gears up, and for this financial year. However, for next financial year, we have confirmed orders of about ₹250 crores.

As regards your second question of Ford Motors, we will be doing exports of about ₹40 to ₹45 crores this year, and next year it is likely to go up to ₹60 crores.

Got it, sir. Any more new orders which you have received or are having in the pipeline, anything you can talk about?

Yes, we are getting new orders in the existing with one of the customers, which I would not like to name, and then happy to share that immediately, though it was not in our plans, but we'll have to set up a new plant immediately in south.

Noted, sir. Congratulations on that.

Before I fall back to the queue, one question. Can you remind us on the utilization at Karoli and Bangalore facility, and also the capex plan for FY27 given that you are setting up this new plant in south?

Yes, Mr. Raghu, that our Bangalore third plant, which was our 18th plant, is running at optimum capacity utilization, near optimum.

Again happy to share that against the installed capacity in Karoli plant, from 60% to 65% that we were in the last quarter, we have now gone up to about 75%. We are confident that in the last Q4 we'll be around 80 around 80% of the capacity utilization.

Because we see the visibility for the Q4. That is the need that we have to urgently set up for the new orders that have come.

We have to set up a new plant in south, that will be in Bangalore at a war footing, and we hope to operationalize it before March in this financial year. Other question of yours was how much capex to be done.

We had given a guidance of about around 4 ₹450 to ₹500 crores. The way we are going and the way we are receiving the orders, because as I today revised the guidance to high teens, I think our capex may go to something like ₹700 cr.

That's wonderful to hear, sir. Wishing you all the best.

I'll fall back to the queue. Thank you.

Thank you.

Yeah. Thank you for giving this opportunity and congratulations, sir, for very good set of numbers.

My first question is on the AISIN JV. Can you throw some light on or can you give us an update on the JV, where are we in terms of revenue, margin, etc., product portfolio expansion, number of dealers, any color on the JV?

By when can we see the profitability of JVs improving? Because I believe it is still making losses.

That would be my first question. Hi

Ronak. AISIN JV is ramping up and we are introducing more products into the pipeline.

We are also expecting that by the end of this year quarter that we'll also see some profitability there. However, it will not be significant because it's mainly trading.

Understood. Any color on the revenue that you expect from this JV, maybe say by the end of next year or this year end or next year?

I think this year there is not much significant revenue we are expecting, but maybe in the last quarter call we will be able to give you some good guidance for the next financial year.

FY28.

Sure, sir. Thank you.

My second question is on the commodity prices. Like you indicated during your opening remarks that commodity prices have started to cool off and you may see improvement in the margins going ahead.

I just wanted to clarify one thing. Is there any pass-through of last quarter which is still pending, or everything is fully passed so far?

Actually, Mr. Ronak, there is a complete confusion on the margins.

In our this casting line, we have to see the absolute EBITDA, which as I've always explained, because there is 100% pass-through with the customer back-to-back. We are hedged, fully hedged.

The absolute margins remain the same.

Yes, sir. No, sir, my question was something else.

No, no,

when we talk of the margin, it is only the percentage that looks like low.

That

which is looking 12, when the prices are coming down, the same percentage will look 13% or 13.4%, like that.

No, sir. I completely understand that.

My question was more from a pass-through which happens with a lag with a 3-month or 6-month lag. Is there any pass-through which is pending?

No, not pending. We have received everything from there.

Our customers are very, very esteemed customers and they have passed it on.

Perfect. Thank you.

Thank you, sir.

Hello, sir. Hope you are doing well.

Just one question that I have. You mentioned that in the first quarter revenues are inflated or rather growth is inflated by about 33% because of aluminum or the pass-throughs.

Now, if I look at this quarter's revenue, which is about ₹1,358 crores, and if I divide that by 1.33 to remove the element of price hikes for aluminum, I get to about ₹1,020 crores. There is no impact on EBITDA because of the pass-through.

If I use the EBITDA number and divide it by this modified revenue, I get a margin of some 15.7%. What I want to check is, one, is the math correct?

Second, is this kind of a margin sustainable adjusted for the effect of price hikes in revenue?

Hi, Naresh this side. Actually, your calculation is right, but some part of opening inventory may be there in the revenue, this margin of 15% is not sustainable in our industry.

Our margins remain the same line.

The overall margins will be you will be finding around 13.5% to 14% in between that.

Understood, sir. The back working that I did, that is logical, right, where I got more than 15%?

That's nearly logical, yeah.

Perfect. Understood, sir.

Thank you. That's all I had.

Yeah. Thank you for the opportunity.

Congratulations, sir, on great set of numbers. Just one question from my side, how do you plan to fund the new capex which you're targeting?

That will be

Actually keeping in mind our mid-teen growth, our internal accruals will be sufficient, but yes, for cash flow management we will have to take resort to some external financing.

External will be borrowings, sir?

Term loan. Term loan.

We'll be taking term loan, this for machines.

Understood. Okay.

Thank you so much.

Hello. Hi, sir.

Am I audible?

Yes, please.

Sir, congratulations on a great set of numbers. I had a couple of questions.

You mentioned that you have received some new orders based on which there's a new capacity that you're putting up. Can you give some more color on these orders?

Are these more on the EV side because we are seeing improving penetration, or is it broad-based across ICE and EV?

This is broad-based, ICE and EV, but yes, EV also is substantial because, as the EV share is now increasing and it's mainly in the ALPS segment.

Okay. Sir.

Got it. Sir, any updates on the alloy wheel with the Taiwanese partner?

That is under testing. As I told you last time also, in the last many calls I said that it's in the final stages of testing.

Whenever the approval comes, because being a safety item, we don't pursue it that the customer should take their own sweet time. We are very confident that even that will pass.

For both the collaborations, I had given the guidance of H2, but we have been lucky that this one, at least one of them has fructified one quarter before.

Right, sir. Yes.

Sir, anything on the sunroof cables business?

That is also going as per plan and, in fact, we have received very good orders in that and next year it will be shaping up very well.

The supplies may start in H2.

Initial supplies will start from H2, but next year you will see a substantial growth there. Okay.

We'll start in H2 of this year and then ramp up next year. Perfect, sir.

Thank you.

Hi sir. Congratulations for good set of numbers and thanks for taking my question.

My question was with regards with the solar plant that has coming up in operation in Q2. I see that there is a good jump in our usage of solar and renewable energy.

How

Hi. Is it better?

Yeah.

Yeah. My question was with regards to the savings in the energy cost by the solar plant, captive solar plant that is coming up.

If we can quantify that number and how would it impact our margins?

We can't quantify that number exactly, but we know very well that our payback of the investment is in 5, 5.5 years.

Okay. Sure.

Thanks.

Thanks for the opportunity, sir. Congratulations to the team on robust performance and you guys are really setting up new benchmark of growing at 30%.

Sir, my question is related to the industry performance, as we see that second half of FY26 has seen growth of close to 25%. How do we see that the growth should be in FY27 second half?

See, as I mentioned in my calls today and even now just now, we expect a high teens growth. I have revised my forecast, you can see that even this quarter is going very well and we expect this momentum to continue in the whole of the financial year.

Okay. Sir, what could be the growth drivers be in second half because the base was high in second half last year?

See, base was high, but the industry is growing and I think the way economy is growing at about 6.7%, I believe lot of money is percolating down the line. After this GST reduction from 28% to 18%, I think because the prices have become rather reasonable and customers are buying the product.

Especially two-wheeler, there is a lot of tailwinds. The only negative possible factor was the El Niño effect, which it seems now that that has diluted to quite some extent because I believe the water tables are almost 90% level even in Bombay.

Yeah. Yes, sir.

Right, sir. Sir, and the second question related to the margin, sir.

We have seen some 300 basis point of gross margin contraction in recent quarters. Do we expect that the margin should come back to 34% levels, gross margin to 34% levels in next 2, 3 quarters?

It will certainly come. The moment the prices come down, they have already started coming down because the supplies have become not normal, but near normal.

Because at one time, the raw material was just not available, the prices had shot up by more than ₹100. The aluminum prices that had shot up to ₹365 have already come down by more than 10%.

Okay. We can safely assume that 13.5% to 14% EBITDA margin is easily achievable as of now.

Should come.

Should

come. It's all depends on the geopolitical situation.

If tomorrow Hormuz gets clear, then certainly it will come. Suppose there's no agreement and signing off and again they block it, I can't say anything.

More important is the absolute value of EBITDA. Yes,

yes.

The growth in the absolute.

Okay. Sure, sir.

Yeah.

Sir, in the February investor presentation, the workforce number was 7,000-plus and in May it was 9,000-plus. I think it's roughly some 25%

kind of jump.

So Last,

it is the 2,000 people added in the last two plants, in Karoli and this Bangalore, I think that was added.

Sir.

Because they are very big plants and in that more than 1,500 people got recruited in Karoli only.

Oh, that's a huge number then, yeah.

That's a huge plant. We have already invested ₹750 crores there.

It's a plant in 23 acres, so that kind of workforce will be there. I think the more will be recruited.

I think 500 more at least will be recruited soon. This number will keep on changing, next year you'll find more than 10,000.

Oh, great, great to hear, sir. Sir, one related question.

Is the land fully utilized or we have some more scope to set up more capacities there?

Karoli Karoli, there is a little more scope, about 20% or so.

The good part is

the revenues have really shot up in Karoli and from ₹60 crore monthly, we have touched ₹110 crores in the last month, which is an appreciable jump. Maybe that plant will give us about next year it should give us ₹1,500 crore turnover.

Wow. Two two last questions, sir.

One is we have invested in the captive solar plant, what kind of saving we do expect in those plant from the first plant and the second one is coming, because I think the power cost is close to 3.5% for us.

Sir, we have explained that we've estimated that we'll get our payback of the investment in 5, 5.5 years.

Okay, 5 years.

If there is more sun, we'll get it in 5 years. If it is remains cloudy, then maybe 6 years.

Sir. The last question, sir, you have mentioned that ₹700 crores of capex we'll be doing this year.

Have we increased our debt from March FY26 levels? Yes, it will certainly increase.

Actually, this is a recent development, as I said. It's not even 15 days' development.

Immediately the board has decided in that we'll go for the next plant very, very fast. It is only the revision from 500 to 700 if the need arises.

Let's see where we end up in this financial year. However, there are such good internal accruals, we'll be utilizing.

As the philosophy of the company is to completely plow back the internal accruals. We'll be plowing that back, and wherever whether working capital or term loan need arises, we'll take the loan.

Still, we are very confident that our debt equity will remain under control and it will be not exceed .5.

Okay. Sir, have we increased our debt levels in Q1 from Q4 levels?

Yes, it has increased due to sudden increase in working capital requirement due to commodity price increase, there is an increase in debt.

Aluminum

is ₹100, the price, working capital, it impacts. Okay.

Can you specify the debt numbers, sir, current debt levels?

We will update in the Q2 results because at that time we will provide statement of assets and liabilities.

Oh, okay. Sure.

Thank you so much, sir, and all the best for future. Thank you.

Thank you.

Hi, sir. Thank you for the opportunity and first of all, congratulations on the great set of results.

My first question is basically one of a client, Honda, is expanding capacity and they have plan to launch 10 new models. How is the content per vehicle there versus overall content per vehicle?

That is our most prestigious and largest customer. Content per vehicle is also highest, and that will continue in the new models also.

Okay.

Sir, basically, what's your export outlook for FY27? Last year was slightly weak, but Q1

Last year we could not go near the target anywhere, but this time we have given a guidance of 20% increase in the exports and at the moment we are still very confident we'll achieve it.

Any update on that Ford order execution timeline and any new export order win recently?

We are in negotiations with two, three players, and I think big export order, but I'll tell you when it materializes, not before that.

Also, sir, now the alloy wheel ramp-up is started, the revenue guidance that you gave in the last earnings call, does it remain same or will improve from that? You have adjusted that.

Today also I have given a revenue guidance, it will remain the same, what I have given today.

Okay. Basically, second last question on the ABS mandate implementation.

Any update on that?

I don't know. We read in the newspapers that you also must have gone through, nothing has come so far.

It's only remains a draft, and I believe there was a news item that some revised draft is also coming. I have told last time, we'll not discuss on the draft thing, whenever final thing comes, we'll tell you.

Okay.

Sir, one last question on the segmental revenue growth. Two-wheeler ICE growth is close to two-wheeler EV growth, but overall in the market we have seen that EV is growing at much much faster pace and the penetration is reached close to 10% to 11%.

Why our growth is kind of similar and not higher in the two-wheeler EVs?

We also are growing in the EV with all the top customers, but our one of the major customers which we had a very large revenue, so that is not performing for the last some time. Because of that, the percentage looks little distorted.

Sir. Thank you.

Best of luck.

Thank you, ladies and gentlemen. Thank you for very, very patient hearing.

I think we could answer to many of your queries quite satisfactorily. However, if something is left, we'll further always happy to clarify because we are a very transparent company.

I would like to assure that now we'll be working hard to achieve the revised guidance for this year, which I said that we'll be growing at high teens. Give us all your best wishes so that we can achieve that target.

Thank you very much once again.