ASK Automotive Limited, India’s largest manufacturer of brake shoes and advanced braking systems for two-wheelers, has delivered its strongest quarterly performance since listing, reporting consolidated revenue of ₹1,059 crores for Q2 FY26—an 8.5% year-over-year increase. The Delhi-based company achieved its highest-ever quarterly EBITDA of ₹142 crores and PAT of ₹80 crores, driven by strategic business optimization and improved operational efficiencies across its manufacturing facilities.
Highlights
- Revenue excluding Wheel Assembly surged 16.6% year-over-year in Q2 FY26, reaching ₹1,059 crores despite a strategic 53.6% reduction in low-margin Wheel Assembly operations
- EBITDA margins expanded to 13.4%, representing a 124 basis point improvement from Q2 FY25, with PAT growing 18.6% to ₹80 crores
- Earnings per share increased 18.6% to ₹4.05 from ₹3.41 in the prior-year period, marking the eighth consecutive quarter of robust performance
- Advanced Braking Systems revenue grew 10%, Aluminium Light Weighting Precision Solutions jumped 22%, and Safety Control Cables rose 2% on a year-over-year basis
Strategic Business Realignment Drives Profitability
The company’s deliberate reduction of its Wheel Assembly business segment by 53.6% in Q2 FY26 represents a calculated shift toward higher-value product categories. This strategic repositioning allowed ASK Automotive to achieve consolidated revenue growth of 8.5% while significantly improving margin profiles across its three core business verticals.
Chairman and Managing Director Kuldip Singh Rathee emphasized the company’s continued outperformance relative to two-wheeler industry vehicle production growth, noting that revenue excluding the Wheel Assembly segment increased 16.6% year-over-year. This performance marks the highest absolute revenue, EBITDA, and PAT figures in the company’s history.
Margin Expansion Through Operational Excellence
ASK Automotive’s EBITDA margin of 13.4% in Q2 FY26 reflected a 124 basis point improvement from the prior-year quarter, driven by enhanced economies of scale, increased capacity utilization at the Karoli and Bangalore facilities, and the strategic business mix optimization. Management noted that absent aluminum alloy price increases during the quarter, EBITDA margins would have reached 13.7%.
The company’s PAT margin expanded to 7.5% from 6.9% in Q2 FY25, a 64 basis point improvement that translated to earnings per share of ₹4.05—up from ₹3.41 in the comparable period. For the first half of FY26, EBITDA margins reached 13.6%, representing a 151 basis point expansion compared to H1 FY25.
Business Segment Performance Analysis
The Advanced Braking Systems vertical, which comprises ASK Automotive’s core competency in two-wheeler safety components, recorded 10% revenue growth in Q2 FY26 on a year-over-year basis. This segment benefits from the company’s approximately 50% market share in OEM brake shoes and braking systems for two-wheelers in India.
The Aluminium Light Weighting Precision Solutions business demonstrated the strongest growth trajectory, with revenue increasing 22% year-over-year in Q2 FY26. This segment aligns with broader industry trends toward vehicle weight reduction for improved fuel efficiency and performance in both internal combustion engine and electric vehicle applications.
Safety Control Cables, the company’s third business vertical, grew 2% year-over-year in the quarter. Export revenue totaled ₹30 crores in Q2 FY26 compared to ₹41 crores in the prior-year period.
First Half FY26 Consolidated Performance
For the six-month period ending September 30, 2025, ASK Automotive reported consolidated revenue of ₹1,954 crores, representing 6.1% growth year-over-year. Excluding the Wheel Assembly business, revenue increased 14.0% during H1 FY26, while the strategic reduction in Wheel Assembly operations totaled 53.5% for the half-year period.
EBITDA for H1 FY26 reached ₹265 crores with a 19.4% year-over-year increase, while PAT grew 17.5% to ₹146 crores. The company’s EPS for the first half improved to ₹7.40 from ₹6.30 in H1 FY25, a 17.5% increase that reflects improved profitability per share outstanding.
Capacity Expansion and Manufacturing Footprint
ASK Automotive’s mega manufacturing facility at Karoli and its new Bangalore facility are ramping up production volumes, contributing to improved economies of scale and operational efficiencies. These strategically located plants position the company in close proximity to major OEM customers across India’s automotive manufacturing corridors.
The company maintains state-of-the-art production capabilities supported by in-house research and development, engineering, and design centers. This vertical integration enables ASK Automotive to develop powertrain-agnostic products suitable for both conventional and electric vehicle applications across automotive and non-automotive segments.
Management Outlook and Strategic Priorities
Management expressed confidence in maintaining current EBITDA margin levels while working to achieve gradual improvements in subsequent quarters, contingent upon two-wheeler industry growth rates and geopolitical conditions. The company aims to sustain its trend of outperforming industry production growth throughout the remainder of FY26.
Rathee highlighted the company’s commitment to expanding value-added business segments, optimizing production capacity utilization, and implementing cost efficiencies across operations. The strategic focus on higher-margin product categories and operational excellence positions ASK Automotive for continued value creation for stakeholders and investors.
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