Ask Automotive Ltd (NSE: ASKAUTOLTD) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Kuldip Singh Rathee — Chairman and Managing Director
Analysts:
Rushabh Shah — Analyst
Raghunandan NL — Analyst
Navin Kumar Dubey — Analyst
Vijay Pandey — Analyst
Deep Shah — Analyst
Yash Agarwal — Analyst
Harsh Sheth — Analyst
Sahil Sanghvi — Analyst
Sagar Shetty — Analyst
Nitin Agrawal — Analyst
Rishi Kapadia — Analyst
Presentation:
operator
Ladies and gentlemen good day and welcome to ask Automative Key Q3 and 9 month FY26 post results on in call hosted by Adjectors PR as a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rishabh Shah from Edfactors. Thank you. And over to you sir.
Rushabh Shah — Analyst
Good evening to everyone and welcome to Q3 and 9 months FY26 earnings call of Ask Automotive Limited from the management we have with us Mr. Kuldeep Singh Rati, Chairman and Managing Director. Mr. Prashant Rati, Joint Managing Director. Mr. Aman Rati, Joint Managing Director. Mister 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 the call may be forward looking in nature and hence it may involve risks and uncertainty including those related to the future financials and operating performance of the company.
Please bear with us if there are any call drops during the course of the conference call. We would like to ensure the call is reconnected at the earliest. I would now like to hand over the call to Mr. Kuldeep Singh Ratty, Chairman and Managing Director for his opening remarks. Thank you. And over to you sir.
Kuldip Singh Rathee — Chairman and Managing Director
Thank you, Mr. Rishabh. Good evening ladies and gentlemen. It’s my great pleasure to welcome you all to our Q3 and 9 months FY26 earnings conference call. I hope you have had the opportunity to review the detailed presentation submitted to the exchanges and available on our website. Act the Government of India’s GST2.0 reform marks a pivotal milestone that is set to elevate the Indian automobile industry and energize the broader economy given the sector’s deep forward and backward linkages. Now let me begin by sharing a quick overview of the broader industry. As reported by CNN, the Indian automobile sector witnessed healthy momentum in 9 months FY26 with overall vehicle production across all segments registering a robust year on year growth of 9.3%.
The two wheeler segment matched the overall vehicle production growth at 8.8% on year on year basis. We are optimistic that the growth momentum will remain in the coming quarters as well. Supported by stable macroeconomic conditions and GST2.0 reforms that have improved overall affordability and consumer sentiment. The two wheeler industry closed nine month FY26 with a strong production volume of 19.6 million units, up from 18 million units in nine months FY25 in Q3 alone production touched 6.8 million units as compared to 5.9 million in the same quarter last year. Looking ahead, we believe that the industry will continue to gain from the far reaching macroeconomic policy reforms undertaken by the government, particularly GST2.0 reforms, personal income tax rationalization announced in the Union Budget 2025-26, successive rate cuts and liquidity enhancement measures by the Reserve bank of India.
These have positively impacted consumer purchasing power and improved access to the vehicle financing created a conducive environment for the sustained demand. Rising rural income will also be beneficial for the tubular sector since all our products were under the category of 28% GST. Hence the reduction of GST rate from 28% to 18% is helping us to outgrow in the Indian aftermarket and gain more market share from gray market operators and duplicators. With this positive backdrop, we remain optimistic about the growth trajectory of the sector in the coming quarters. Before we move on to ASK Business performance, we would like to highlight that our 9.9 megawatt solar plant at Cifsa Haryana has started supplies from April 25.
We are excited with the results in terms of sustainable operational economies. Happy to announce that company is installing one more captive solar power plant of 11.55 megawatt at Rajasthan which is expected to be operational by Q1FY27. 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 finish to the third quarter and nine months of the year in both revenue and profitability. This marks our ninth consecutive quarter of robust performance since the company’s listing. During Q3 FY26 we delivered revenue growth of 28% excluding wheel assembly business.
The wheel assembly strategic reduction was 51.5% and thus our consolidated published revenue has grown by 18.5% on year on year basis we achieved growth of 26.8% in EBITDA and 21.3% in VAT on year on year basis this is the highest ever absolute revenue, EBITDA and PAT earned by us in any quarter in the past. We continue to outperform the two wheeler industry in terms of vehicle production growth during Q3FY26. Further, we have achieved the EBITDA margin of 13.4% in Q3FY26 representing an improvement of 88 basis points over Q3FY25. Our EBITDA margin is affected by aluminium alloy prices.
Upward increase in prices of aluminium affects our EBITDA percentage because of denominator effect. However, our absolute EBITDA number remains the same. With this strong performance on profitability, our earnings per share in Q3FY26 has increased to rupees 4.05 per share against rupees 3.34 per share in the same period last year. Improvement in margins is mainly driven by better economies of scale due to higher volumes benefit from increasing capacity utilization at Karoli and New Bangalore facility and strategic reduction in low value added wheel assembly business As a result, in nine months of FY26 we delivered revenue growth of 18.6% excluding wheel assembly business because of wheel assembly strategic reduction by 52.8%.
The consolidated revenue which is published has grown by 10.2% on year on year basis. Achieved growth of 21.9% in EBITDA and 18.8% in PAT on year on year basis we have delivered EBITDA margin of 13.5% and improvement of 130 basis point on year on year basis with strong performance on profitability. Our earnings per share in nine months FY26 has increased to rupees 11.45 per share against rupees 9.64 per share in the same period as last year. Our all three product segments performed well in Q3 and nine months FY26. In terms of revenue growth, we have sustained our market leadership position in the advanced baking system.
Our advanced baking System revenue grew by 22% in Q3 and 12% in 9 months FY26 on year on year basis. The aluminium lightweighting precision solution revenue grew by 36% in Q3 and 24% in nine months FY23 on year on year basis. The safety control cable revenue also recorded growth of 22% in Q3 and 10% in nine months FY26 on a year on basis. In the unstable global geopolitical environment due to tariff and other issues, our revenue from Exports were at rupees 100 crore against rupees 108 crore last year in the same period. However, based on Q3FY26 performance we do feel that we’ll touch the last year’s number.
Thank you very much for your patient hearing. With this we leave the floor open for question and answer.
Questions and Answers:
operator
Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question comes from the line of Raghunandanil from Navama Research. Please go ahead.
Raghunandan NL
Thank you sir for the opportunity. Congratulations to you and the entire team for the strong number. My first question was on the CapEx side. The new CapEx of 35 crore and increasing the capacity to 32 crore brake shoes and pads. So how much would now the total capex be for FY26? And also your thoughts on FY27 capex and even for FY26? If you can also provide a breakup of capex that will be very useful.
Kuldip Singh Rathee
We’ll close the FY26 capex. We had planned four hundred and fifty crores initially in the FY26. However we tried to minimize wherever it was possible. But then another capex of 40 crores we did to set up the solar power plant which was not scheduled initially. And with this extra capex. But still we’ll close the capex at 500 crores.
Raghunandan NL
Noted sir. And how do you see it for FY27?
Kuldip Singh Rathee
FY27 capex will be less. We intend to be within limits of 400 crores only.
Raghunandan NL
Got it sir. And on brake pads approximately what would be your market share?
Kuldip Singh Rathee
See the break banks overall market is less than that. So our market share should be around between 10 to 12% or something.
Raghunandan NL
Got it sir. And congratulations on the performance on exports in this quarter. You had earlier spoken about the fourth order. Would that be commencing by end of FY26? And how do you see that fourth order commencing and ramping up over FY27 and 28? And also because of this order would you expect FY26 exports to be flat?
Kuldip Singh Rathee
The FY26 exports as I mentioned will be flat. However the exports to Ford have already started. The containers are going. But because of the great uncertainties created by the tariff issues not only by us but also by Mexico where some parts were Going and they have also imposed 50% duties. So. But still we are very hopeful that since our product is highly technical we feel there will be some smooth supplies in the FY27.
Raghunandan NL
Got it. Sir, just the last question. Can you share how was the utilization at Bangalore and Karoli plant this quarter?
Kuldip Singh Rathee
Yes sir. In this quarter we have reached between 75 to 80% capacity utilization in the Bangalore plant. And now it’s almost fully operational Bangalore plant. And the capacity utilization in Rajasthan plant remains at 65% only because in that we are waiting for some new items to be started which are likely to start at the edge Studio.
Raghunandan NL
Got it sir. Thank you. Thank you so much and wishing all the best.
Kuldip Singh Rathee
Thank you sir.
operator
Thank you. Our next question comes from the line of Naveen Kumar Dubi from Denalia Financial Service limited. Please go ahead.
Navin Kumar Dubey
Yeah. Hi sir. Congratulations for the strong set of numbers. I have two questions. First question is related to the margin. Our alloy wheel business is like 50% of the revenue currently. And aluminum prices have gone up but we don’t see the much of impact on the margin. Have we taken any price increases in that?
Kuldip Singh Rathee
No Mr. Naveen, we have not taken any price increase so far. And the margins that you see is already down by at least 30 to 40 basis points because of the aluminium price increase. The revenue has gone up by that much and the EBITDA margin has come down by 30 basis points point.
So what you see the EBITDA margin in this quarter of 13.4 would have been 13.7 or 13.8 had the aluminum prices have not skyrocketed. Oh okay. And the second question is on the same same alloy wheel business. We have done that Japanese collaboration. And how is that progressing? Sir, that’s progressing pretty well. We are going to take out the product in our premises first product in February. By before February end they’ll be testing for a few months. And we hope to start the supplies in the in a startup H2.
Navin Kumar Dubey
Thank you. So that’s it. That’s it from my side.
operator
Thank you so much. Ladies and gentlemen. Anyone who wishes to ask a question may press star N1 on the test run telephone. Our next question comes from the line of Vijay Pandey from Nuama Wealth Management. Please go ahead.
Vijay Pandey
Hi sir. Thank you for taking my question. Sir, two questions. One was on the commodity prices. How. How are we. Able to like how are we testing this increased commodity inflation especially on the aluminum side. Do we have any hedge or like is it a pass through? How should we look into that?
Kuldip Singh Rathee
The aluminium prices are pass throughs month on month. So we are not very much affected on that account. So that’s what we said that the absolute EBITDA numbers remaining the same only the percentage of the EBITDA has gone down by 30 basis point.
Vijay Pandey
Okay, second questions. Our new plant which we are setting up this would be again solar so will be powered by solar. So is there any extra paymentary capex because of the solar situation? Because the solar panels, the cost of solar panel has gone up like can you confirm the incremental? You’re a net economic space.
Kuldip Singh Rathee
We are not incurring any extra. There’s no impact because the project is getting almost complete. All the supplies had already come before the price increase. So this new solar plant will be set up within the stipulated budget, you know.
Vijay Pandey
Okay, okay, okay. How are you. Is it possible that you can give us an outlook for the remainder of fourth quarter as going into FY27? A slight breakup for the two dealers especially in the rural and arbor side that will be pretty helpful.
Kuldip Singh Rathee
As regards the coming quarter is there we have very strong projections from the OEMs and even the independent aftermarket is looking very very good because of the GST reduction from 28 to 18% in our line. So we are very bullish even on this Q4, you know. And as regards the next year we are very bullish on that because we feel that this two wheeler story will continue because it has. It has started continuing after a gap of many years. So even the next year seems to be very good.
Vijay Pandey
Okay sir, thank you.
operator
Thank you. Next question comes from the line of Deep Shah from yes, securities and Institutional Equities. Please go ahead.
Deep Shah
Yeah. Hi sir, thanks a lot for the opportunity. A few questions of first to begin with. On the other hand, while you have alluded some timelines to our Kyushu Japanese jv if you can throw some light on the leo, the Taiwan JV that we were working for. So any. Any progress on that? That would be.
Kuldip Singh Rathee
Yeah, Taiwan thing is going on. Well that’s under testing. There were a few amendments to be done. We have already done those amendments. But you, you know I have explained it in every call that this being a safety item, we cannot do any hurried call we cannot take, you know, so let the customer take the call. But we are very confident all the results will definitely come in the Taiwan collaboration also positive results will come.
Deep Shah
Okay. And sir, the second question is about the Sandroof cable Chevy that we did and then some sort of supply what expected from 1h FY27. So where are we on that journey? Is it on track or I mean is there any initial, let’s say subcommitts by the OEMs if you can throw some light there.
Kuldip Singh Rathee
We are very much on track on that already the machines have come the setup and is there and I think all our samples etc production will come out in the Q2 of FY27 and the supply should start in the H2.
Deep Shah
And sir, by roughly what would be the addressable revenue size for us Side.
Kuldip Singh Rathee
Is not too big. Addressable revenue side is about 100cr. That’s all. But you see I told in our last call that we don’t do many things just for the sake of money. We take pride in saying that this is a Atma Dirbar Bharat project and will be the first one to initialize it in the country.
Deep Shah
Surely. And sir, last question is about the easy jv. So there also we had commented about some, you know appointment of some 40, 50 odd dealers for aftermarket penetration. So where are we on that aspect.
Kuldip Singh Rathee
That is ramping up now slowly and gradually and maybe in the first quarter of next year we’ll break even in that.
Deep Shah
Okay. Okay sir, thanks a lot.
Kuldip Singh Rathee
Thank you.
operator
Thank you Ladies and gentlemen. Anyone who wishes to ask a question may press star and one on their touchdown telephone. Next question comes from the line of Yash Agarwal from Nirmal Bank. Please go ahead.
Yash Agarwal
Good evening sir and congratulations for the great set of results. I just wanted to know your view on update. Any update on the draft ABS regulation which was meant to be implemented by the first gen. Give any update on that?
Kuldip Singh Rathee
There is no, no update from the government. I think it is only it was a draft which is now hanging, you know because the request of the OEMs.
Yash Agarwal
And also in the quarter three we have seen that the two wheeler I segment growth outpaced the two wheeler EV segment. So mainly maybe because of the GST benefit the ICE segment is doing better in the two wheeler side. So do we expect this trend to continue going forward?
Kuldip Singh Rathee
You are right because now the gap is very less because of the GST reduction and that way I think ICE sector is rather in a stronger position.
Yash Agarwal
And what are your expectations for the Q4 two wheeler production growth estimates like have you revised it higher as compared to the last time?
Kuldip Singh Rathee
We know our projections. We always say we’ll grow in mid teens and we’ll be growing in mid teens.
Yash Agarwal
Okay sir, thank you from my side.
operator
Thank you. A nice question comes from the line of Harshad from PI Square. Please go ahead.
Harsh Sheth
Hi sir, I just wanted to understand your guidance about your debt levels and what are our plans with that debt levels.
Kuldip Singh Rathee
Our debt Equity never increases 0.5 and we are much will be will remain below that in spite of the extra expenditures on Capex that will be increasing this financial year. And it’s always one year of ebitda. Normally it’s close to that.
Harsh Sheth
I just also wanted to understand what would be your ideal utilization across your various plants. On a blended level.
Kuldip Singh Rathee
We are see the economies of scale come and we are overall 80% capacity utilization. We love to do that. But however we put up the next plant much before because we are suppliers to all our prestigious customers and direct online and just in time supplier. So we keep always some extra capacities.
Harsh Sheth
Okay, thank you.
operator
Thank you. Our next question comes from the line of Sahil Sanghvi from Monash Network Capital. Please go ahead.
Sahil Sanghvi
Good evening sir. Thank you for the opportunity and congratulations for very good numbers. So just wanted to understand the growth in the ability segment and the LP segment that we’ve reported. So ideally in the braking segment we usually have something some growth around the two wheel industry but this time it’s, it’s much, much higher. So if you could help us with the reason. And also the aluminum segment has grown a little higher than our run rate for the last two, three quarters. So just the reasons for that. And do you expect that these growth rates will sustain?
Kuldip Singh Rathee
See there has been an impact on the Indian aftermarket. As I have mentioned many times that the reduction of GST we were unfortunate to be on the 28% bracket now that it has come down to 18%. So a lot of gray market, we are giving a tough fight to the gray market operators, you know, which are prevalent in the country, you know. So I think we are grabbing more and more share from them so that there is a very huge growth in the Indian aftermarket. That’s the main reason. Plus our ice OEM players, you know, their duty was also reduced from 28 to 18%.
So their numbers have also increased tremendously and in the Q3 even they grew by 15%.
Sahil Sanghvi
So similar reasons apply for the aluminum.
Kuldip Singh Rathee
Segment, aluminium segment here, similar reasons or even otherwise. Therefore the work can come from anywhere. You know, that’s a very flexible and a great opportunity. That is why we call it the sunrise industry.
Sahil Sanghvi
Got it, Got it. Thank you sir. Thank you.
operator
Thank you. Our next question comes from the line of Sagar Shetty from DP Equity. Please go ahead.
Sagar Shetty
Yes, I’m audible.
Kuldip Singh Rathee
Yes please.
Sagar Shetty
Yeah, so congrats on the Good set of numbers. So I just wanted to get a picture on how like after the DST rate cut. So how, how is the sentiment going on with the OEMs? Are we seeing any particular better demand from two wheelers or PVs or anything like that? If you could just give some color on it.
Kuldip Singh Rathee
See after the reduction in gst, two wheeler demand is really picking up both at the OEM level and the independent aftermarket level and it has been a real big boost to the two wheeler sector.
Sagar Shetty
Okay, and so do we expect some like you know, if not in Q4, but FY27 onward, do we expect some revision in our, in our growth guidance like from mid teen digits to somewhere around high teen digits or anything like that or do we expect some.
Kuldip Singh Rathee
We always expect mid teens and we are happy to achieve that. Because we are outgrowing the market. You will appreciate that, you know, even this year, in spite of such good times, the two wheeler sector in nine months has grown only by 8.8% and whereas we have grown substantially higher.
Sagar Shetty
And so if I could just ask one more thing, like with the ABS thing going on. So if the draft has not been announced by the government. So what is going on with the OEMs right now? What is the sentiment with the, you know, the bike two wheeler manufacturer? If we had any conversation with them and is there any, you know, kind of thing you have discussed on how.
Kuldip Singh Rathee
No, no, I have repeatedly said that. We’ll talk on this hypothetical question and we’ll discuss this final notification comes because our OEMs are already in discussion with the government that it’s not practical. So let the result come out of that.
Sagar Shetty
Okay, thank you.
Kuldip Singh Rathee
We are not aware what they are discussing with the government.
Sagar Shetty
Thank you so much.
operator
Thank you. Our next question come from the line of Nitin Agarwal from JM Financial. Please go ahead.
Nitin Agrawal
Yeah, thanks for the opportunity and congratulations on great set of numbers. I would like. I wanted to know about your EBITDA margin guidance. Since we have ramped up the Bangalore facilities and the sun facilities expected to ramp up. So do, are we trying to. Or are we thinking of revising our estimates upwards going in FY27 or are we maintaining around 13.7 thereabouts we had.
Kuldip Singh Rathee
Given a guidance of 13.7 but that gets affected at least by 30 basis point because of the denominator factor of the aluminium price increase, you know, so that 13.7 becomes 13.4 and, and we are very hopeful that we’ll try to maintain around that only in the Next financial year.
Nitin Agrawal
Okay, okay. So but you highlighted that aluminum prices are a pass through on a month on basis. So eventually the margin will come back to what we were guiding for initially. Is that understanding correct?
Kuldip Singh Rathee
That understanding is not correct. The the contribution that we get to for doing the job remains the same. So when the aluminium prices go up, you know, the EBITDA margins percentage goes down but the absolute EBITDA remains the same.
Nitin Agrawal
Okay, that’s it for myself. Thank you.
operator
Thank you ladies and gentlemen. Anyone who wishes to ask a question, maybe star and one on the test to telephone. Our next question comes from the line of Vijay Pandey from Noama Wealth Management. Please go ahead.
Vijay Pandey
Thank you for follow up. Just want to confirm about the launch pipeline for the new products in the next year. So we have sunroof, we have two programs of lower bills. If you can just confirm when can we expect commercial production of.
Kuldip Singh Rathee
The programs we will be launching in start of H2, you know.
Vijay Pandey
Okay, okay. Okay. So both elements with CY1, the one estimates with the Java parts Japanese company, both will come in the second half. Only the second half.
Kuldip Singh Rathee
They can come. They will come in second half after due testing. And even this sunroof cable will also come. That will also come.
Vijay Pandey
Generally how much time does it take for the full ramp up? So when can we expect?
Kuldip Singh Rathee
We prepared. We are prepared from day one. You know, we are prepared today also because. Because we have already invested everything. So once the testing is complete then we’ll immediately clear up.
Vijay Pandey
Okay. Okay. Thank you sir and all the best.
Kuldip Singh Rathee
Thank you.
operator
Thank you. The next question come from the line of Rishi Kapadia from clsa. Please go ahead.
Rishi Kapadia
Yeah, thank you so much for taking my questions and congratulations on good six of numbers. Sir, my first question is on wheel assembly business. By when can we expect that this would kind of completely phase out?
Kuldip Singh Rathee
Sir, the customer has assured that by March end the balance will also go which is about 48%. So let’s see once the customer takes it back we’ll be announcing in the next call. You know, If the customer takes it back in March, then next year also you will see the same representation from our side that actual excluding wheel assembly, this is the growth and without wheel and the published is this much.
Rishi Kapadia
Thank you sir. And so my second question is on your ROC you are currently delivering 27 28% of ROC and despite capacity utilizations of the two plant at lower level. So what do you expect? Can ROC go ahead from current levels or 2728 is something which would kind of build in.
Kuldip Singh Rathee
I hope Rishi, you are satisfied with 27% ROC. That’s A. That’s a tough job to achieve which we are achieving, you know. And second thing I would correct that one plant has already gone to 80% capacity utilization. So only one is left now. You know, at 65% ROC will remain. This will be difficult to maintain 27. But we take all out efforts to maintain 27.
Rishi Kapadia
Okay. And lastly just the clarification would aluminium inflation would lead to roughly 2% revenue inflation as well.
Kuldip Singh Rathee
Or it certainly one side it leads to revenue inflation, the other side it leads to reduction in the percentage of EBITDA margin. Not the absolute, but percentage of EBITDA margin.
Rishi Kapadia
Okay. The quantum would be just 2% roughly.
Kuldip Singh Rathee
Right? Yeah. 3. 3. You can say 3% 2 to 3%. India.
Rishi Kapadia
Okay. Thank you so much.
operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question M1 on the touch on 30. As there are no further questions from the participant, I would like to hand the conference over to Mr. Kuldeep Singhrati from Ask Automotive Limited for closing comments. Thank you. And over to you sir.
Kuldip Singh Rathee
Thank you everyone for such a patient hearing. And I would like to once again reassure you that the future looks very bright. And as you know that I am always an optimist, our Q4 is going to be very bright and even the next year seems to be very good. On that positive note, I would like to end and thank you. Thank you very much once again.
operator
Thank you so much, sir. On behalf of Ask Automotive. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.