CIE Automotive India Ltd (NSE: CIEINDIA) released audited financial results for Q4 and full-year CY2025 on February 19, 2026, showing consolidated revenue up 6% to ₹91,223 million and stable PAT at ₹8,282 million. The board recommended a ₹7 per share final dividend, signaling confidence despite one-off costs impacting margins. Shares traded around ₹390 with a market cap near ₹17,400 crore.
Earnings Highlights
Consolidated sales rose 15% in Q4 CY2025 to ₹23,258 million from ₹20,292 million year-ago, driven by 12% India growth and 21% Europe sales increase. Full-year revenue expanded 6% to ₹91,223 million, with India up 8% to ₹59,370 million aligned to market gains in two-wheelers (8.3%), tractors (17.2%), and MHCV (8.4%). EBITDA margin dipped to 16.0% from 17.3% due to ₹132 million labor code gratuity impact and Legazpi restructuring costs.
Key Development
The board approved audited CY2025 results and a ₹7 final dividend (70% payout) on February 19, 2026, alongside 27th AGM notice for April 29. Q4 PAT stood at ₹2,043 million (EPS ₹5.38), with full-year net debt/equity at -0.25x reflecting strong liquidity (net cash ₹18,807 million). Stock dipped 7.9% over past year but outperformed in recent months amid auto recovery.
Financial Performance
India delivered Q4 EBITDA margin of 16.8% (down from 17.3% QoQ), with full-year at 17.5% on ₹10,410 million EBITDA. Europe Q4 sales hit ₹7,823 million (+21% YoY in INR, +4% in EUR), but EBITDA margin fell to 12.7% from restructuring; full-year sales flat at ₹31,853 million with 13.3% margin. Standalone full-year revenue grew to ₹48,964 million, PAT to ₹6,169 million (EPS ₹16.26).
Business Outlook and Strategy
Management targets capacity expansion in India for EV components like inverter housings, e-drive gears, and battery enclosures across forgings (35%), stampings (23%), and aluminum castings (18%). Capex focused on organic growth (5% of sales), with EV orders offsetting crankshaft decline in Europe; strong operating cash flow of ₹12,580 million supports dividend and investments. Priorities include higher value-added products in two-wheelers, tractors, and MHCV amid 7-9% two-wheeler CAGR forecast FY26-30.
Sector and Macro Context
India auto production grew: light vehicles +8.1% to 25.5 million, two-wheelers +8.4% to 402 million units in CY25. Europe light vehicles flat at 15.67 million (-0.5%), MHCV -1.6%, pressuring forgings from Chinese competition and EV shift. Budget 2026 boosts EV ecosystem and infrastructure, aiding CIE’s 65% India revenue exposure. RONA at 18.4% (down from 19.8%).
Analyst Commentary
Six analysts rate “Outperform” with average target ₹493 (26% upside from ₹390), high ₹574; reasons include EV order wins (>₹3 billion), healthy CFO yields (~7%), and RoE/RoCE to 15%/17% by CY27. Recent Q3 beats (11% revenue growth) reinforce buy case despite margin squeeze.
Guidance and Future Outlook
CY26 eyed positive across segments post-GST cuts: light vehicles +7.4%, MHCV +5.3%, two-wheelers 8-10%. Europe adapts to lower volumes via restructuring; India accelerates H2 growth, with EV penetration rising (e2W 6-25%, e4W 3-15% next 5 years). Recurrent EBITDA margins stable excluding one-offs.
Regulatory Milestones and Segment Updates
New labor codes added ₹132 million gratuity charge; registered office shifted to Baner Road effective August 29, 2025. Forgings lead (35% mix), with EV focus in gears/machining; 20 plants, 10,000 employees; Mexico plant reclassified under Europe.
Market Capitalization and Management Commentary
Market cap ₹17,396 crore as of late 2025; promoter holding 65.7%; 6-month share return +6.4% vs Nifty +3.1%. Results highlight India resilience offsetting Europe weakness, with dividend underscoring capital return discipline.
Broader Industry Trends
Auto components sector faces EV transition (crankshaft redundancy), Chinese competition in Europe, but India benefits from 5-8% MHCV growth and rural spending. CIE’s diversification (two-wheelers 23%, light vehicles 13%) and exports (14%, Europe-focused) position it well.
Business Model and Market Situation
CIE supplies precision forgings, castings, stampings to OEMs; 65% India/35% global revenue, diversified customers (top 12-15%). Operates 20 plants; strong balance sheet (ROE 11.1%) funds EV pivot amid steady demand.
Where CIE Stands Today
CIE holds robust India positioning (8% market-aligned growth) with net cash status and 18.4% RONA, navigating Europe challenges via restructuring and EV diversification. Trades at discount to 5-year averages but analyst upside signals rebound potential in recovering auto cycle.