ASK Automotive Limited Q2 profit rises 27.3% as revenue climbs

In Q2 FY27, ASK Automotive Limited reported consolidated net profit of ₹101.56 crore, up 27.3% year-on-year, while consolidated total income rose 47.5% to ₹1,561 crore. The company said its net revenue grew 29.5% after adjusting for alloy-price pass-through and a strategic reduction in wheel assembly business.

What did ASK Automotive report in Q2 FY27?

ASK Automotive reported its highest-ever quarterly revenue, EBITDA and profit in the September 2026 quarter. Revenue from operations stood at ₹1,555 crore, up 47.6% from a year earlier, while consolidated total income was ₹1,561 crore. Net profit rose from ₹79.80 crore in Q2 FY26 to ₹101.56 crore in Q2 FY27.

Consolidated EBITDA increased 30.0% year-on-year to ₹185 crore. The EBITDA margin was 11.8%, compared with a higher underlying margin measure cited by management after removing the effect of alloy-price pass-through. Earnings per share increased to ₹5.15 from ₹4.05 in the corresponding quarter of the previous year.

The company said this was its 12th consecutive quarter of robust performance since listing. Its Q2 result came during a period when the Indian automobile sector recorded its highest-ever second-quarter domestic sales across vehicle segments, according to management.

Why was reported revenue growth higher than net revenue growth?

ASK Automotive said reported revenue was lifted by a significant increase in alloy prices that was passed through to customers. Management quantified the pass-through impact at 23% and also cited a 5% effect from the strategic reduction of its wheel assembly business. After these adjustments, it placed net revenue growth at 29.5% year-on-year.

The distinction matters because pass-through revenue raises the reported sales base without necessarily creating a corresponding expansion in percentage margins. Chairman and Managing Director Kuldip Singh Rathee said alloy-price volatility could affect margin percentages through a denominator effect, while absolute EBITDA growth remained in line with net revenue growth.

Management also said the adjusted 29.5% net revenue growth exceeded 16.5% growth in industry vehicle production. This comparison points to business growth ahead of the production growth figure cited by the company, although reported revenue was additionally influenced by the higher alloy-price pass-through.

How did the first half of FY27 perform for ASK Automotive?

ASK Automotive reported EBITDA of ₹348 crore for H1 FY27, up 31.3% year-on-year. The first-half EBITDA margin was 11.9%, while first-half profit after tax increased 28% to ₹187 crore. Earnings per share for the six-month period rose to ₹9.47 from ₹7.40 a year earlier.

The company said the alloy-price effect also reduced the reported margin percentage in the first half. Management referred to an adjusted EBITDA margin of 13.5% when excluding the alloy-price impact for the quarter, underscoring the difference between reported profitability ratios and the internal adjusted measure.

Total expenses in Q2 FY27 were ₹1,428.56 crore, compared with ₹956.82 crore in Q2 FY26. The rise in expenses occurred alongside the increase in total income and reflects the higher scale of operations, including the alloy-price component in sales and costs.

What is ASK Automotive's outlook for FY27?

ASK Automotive has retained its expectation of net revenue growth in the high teens for FY27. Rathee said the company remains confident of achieving this range despite a tougher comparison base in the second half of the financial year.

The higher base relates to the Goods and Services Tax cut on two-wheelers in September 2025. Management said the GST 2.0 reforms improved affordability across vehicle segments, contributing to stronger activity in Q3 and Q4 of FY26. This creates a more demanding year-on-year comparison for the corresponding quarters of FY27.

The company also said high-pressure die-cast alloy wheel supply has started. Separately, management indicated that an Indian original equipment manufacturer customer remained in final testing, with a possible breakthrough expected in FY28. No customer name, commercial volume or financial contribution was disclosed.

What does the quarter mean for investors and the auto-component sector?

The Q2 figures show that ASK Automotive's profit and EBITDA increased at a slower rate than reported total income, largely because alloy prices increased the revenue denominator through pass-through billing. EBITDA grew 30.0% and profit grew 27.3%, compared with the 47.5% rise in total income. Investors tracking operating performance may therefore focus on the company's adjusted net revenue growth and absolute EBITDA growth alongside headline revenue.

For the wider auto-component sector, the result reflects the importance of two-wheeler demand, commodity-cost movements and customer pricing arrangements. ASK Automotive's management linked the sector's first-half strength to improved vehicle affordability after GST changes, while also acknowledging that alloy-price movements can affect reported margins.

The company has not changed its high-teens FY27 net revenue growth outlook. Its ability to meet that view will be assessed against the elevated second-half FY26 base, continued vehicle-production trends and the extent to which commodity price movements continue to affect reported revenue and margins.

Conclusion

ASK Automotive Limited delivered a strong Q2 FY27, with net profit rising 27.3% to ₹101.56 crore and EBITDA increasing 30.0% to ₹185 crore. Reported income growth was stronger at 47.5%, but management said alloy-price pass-through and lower wheel assembly activity meant adjusted net revenue growth was 29.5%.

The next key measures are the company's performance against its high-teens FY27 net revenue guidance and the impact of a tougher Q3 and Q4 comparison base following the September 2025 GST cut on two-wheelers. Investors will also watch developments in alloy wheel supply and the Indian OEM testing programme that management said could progress in FY28.