ASK Q2 underlying revenue rose 29.5% despite wheel exit

ASK Automotive Limited recorded 29.5% year-on-year net revenue growth in Q2 FY27 after excluding a 23.0% alloy-price pass-through effect and a 5.0% impact from ending wheel-assembly sales. ASK’s reported consolidated total income nevertheless rose 47.5% to Rs 1,561 crore, while EBITDA increased 30.0% to Rs 185 crore.

How did ASK’s Q2 FY27 revenue change?

ASK’s reported consolidated total income increased by Rs 502 crore, or 47.5%, from Rs 1,059 crore in Q2 FY26 to Rs 1,561 crore in Q2 FY27. Net revenue was Rs 1,303 crore in Q2 FY27, compared with Rs 1,006 crore a year earlier, representing the company’s stated 29.5% growth after adjusting for alloy-price pass-through and wheel-assembly sales.

The difference between the two growth measures reflects specific items identified in the presentation. ASK says significantly higher alloy prices produced a 23.0% revenue pass-through impact in Q2 FY27, while the strategic reduction of wheel assembly had a negative 5.0% effect. The stated 29.5% net revenue growth therefore excludes both the pricing mechanism and the former wheel-assembly contribution.

Why did reported and net revenue growth differ at ASK?

ASK says alloy-price pass-through increased reported Q2 FY27 revenue growth by 23.0%, whereas its wheel-assembly reduction lowered growth by 5.0%. Wheel-assembly revenue was Rs 52 crore in Q2 FY26 but was nil in Q2 FY27, because wheel-assembly sales have been nil with effect from 1 April 2026. These factors separate the 47.5% rise in total income from the company’s 29.5% net revenue measure.

The product mix changed alongside the removal of wheel assembly. Aluminium Lightweighting Precision Solutions, or ALPS, formed 58.0% of Q2 FY27 revenue, up from 50.6% in Q2 FY26. Advanced Braking Systems, or ABS, represented 36.6%, against 37.1%, while Safety Control Cables, or SCC, accounted for 3.3%, compared with 3.7%; wheel assembly fell from 5.0% to nil.

ASK’s channel mix also reflects the change. Internal-combustion two-wheelers represented 71.4% of Q2 FY27 revenue, up from 69.1% a year earlier, and two-wheeler electric vehicles accounted for 6.1%, compared with 4.6%. Exports increased to 4.5% from 2.8%, while the wheel-assembly channel moved from 5.0% in Q2 FY26 to nil.

Did ASK’s Q2 FY27 profitability increase?

ASK’s earnings before interest, tax, depreciation and amortisation, or EBITDA, increased by Rs 43 crore to Rs 185 crore in Q2 FY27 from Rs 142 crore in Q2 FY26. Profit after tax, or PAT, rose by Rs 22 crore to Rs 102 crore, a 27.3% increase, and earnings per share increased 27.3% to Rs 5.15. ASK described Q2 FY27 as its highest quarterly revenue, EBITDA and PAT.

Margins declined despite the increase in absolute profit. EBITDA margin was 11.8% in Q2 FY27, down from 13.4% in Q2 FY26, while PAT margin was 6.5%, against 7.5% a year earlier. ASK attributes the lower EBITDA margin percentage to alloy-price pass-through, which lifted revenue without a corresponding increase in percentage margin.

H1 FY27 showed the same relationship between reported growth and margins. Total income increased 49.6% to Rs 2,922 crore, while net revenue rose 27.6% to Rs 2,365 crore after a 27.1% alloy-price pass-through impact and a negative 5.1% wheel-assembly effect. EBITDA rose 31.3% to Rs 348 crore and PAT increased 28.0% to Rs 187 crore, while EBITDA margin declined from 13.6% to 11.9%.

Which ASK segments grew in Q2 FY27?

ASK’s ALPS segment recorded the fastest disclosed Q2 FY27 revenue growth, rising 69% to Rs 902 crore from Rs 534 crore in Q2 FY26. ABS revenue grew 46% to Rs 569 crore from Rs 391 crore, and SCC revenue increased 33% to Rs 52 crore from Rs 39 crore. These three segments expanded while wheel-assembly revenue declined from Rs 52 crore to nil.

The disclosed segment growth rates exceeded the 16.5% increase in two-wheeler industry production shown in the presentation. Two-wheeler production rose to 81 lakh vehicles in Q2 FY27 from 69 lakh vehicles in Q2 FY26, based on Society of Indian Automobile Manufacturers data presented by ASK. ASK states that revenue growth outperformed industry growth, although reported revenue includes alloy-price pass-through.

ASK also commenced regular supply of high-pressure die-cast alloy wheels on 3 August 2026 to a leading Japanese customer under its technical collaboration with Kyushu Yanagawa Japan. The company says these were the first high-pressure die-cast alloy wheels introduced in Indian two-wheelers. Commercial production of alloy wheels also commenced in Q2 FY27, while the earlier wheel-assembly sales stream remained nil.

What does the H1 FY27 mix indicate for ASK?

ASK’s H1 FY27 revenue mix became more weighted towards ALPS after wheel-assembly sales became nil from 1 April 2026. ALPS represented 57.9% of H1 FY27 revenue, compared with 50.5% in H1 FY26, while ABS represented 36.1%, down from 36.8%. SCC accounted for 3.1%, compared with 3.7%, and wheel assembly fell from 5.1% to nil.

Two-wheeler internal-combustion engine sales remained ASK’s largest H1 channel at 72.9%, up from 68.4% in H1 FY26. Two-wheeler electric vehicles increased to 5.9% from 4.8%, passenger vehicles rose to 3.7% from 3.3%, and exports increased to 3.7% from 3.2%. The presentation also attributes H1 EBITDA improvement to higher volumes and greater capacity utilisation at Karoli and the new Bangalore facility.

Conclusion

ASK’s Q2 FY27 results show that reported total-income growth of 47.5% to Rs 1,561 crore included a significant alloy-price pass-through, while its stated underlying net revenue growth was 29.5% after that effect and the removal of wheel assembly. EBITDA and PAT rose 30.0% and 27.3%, respectively, but EBITDA margin declined by 1.6 percentage points to 11.8%.

The next disclosures will show how commercial alloy-wheel production contributes after regular high-pressure die-cast alloy-wheel supply began on 3 August 2026. ASK has not provided a future revenue or margin target for this activity, while wheel-assembly sales have remained nil since 1 April 2026 and H1 FY27 EBITDA improvement was linked to capacity utilisation at Karoli and Bangalore.