1. Opening Hook
When the U.S. hiked tariffs to 50%, most exporters reached for aspirin. Alicon reached for the casting mould. Despite global chaos, cyber-attacked customers, and rare earth drama, the Pune-based auto parts maker still polished a decent quarter. The CEO is retiring, the new one’s waiting with robotic dreams, and somewhere in all this, EBITDA quietly got a six-pack. From supercars to solar power, Alicon’s story this quarter reads like a screenplay where metal meets mettle.
(Stay tuned — the cast is changing, but the plot’s about to get interesting.)
2. At a Glance
- Revenue ₹429 Cr:Down 7.7% YoY — tariffs bit, but not too deep.
- EBITDA ₹55.5 Cr (12.9% margin):Robots and German experts did their job.
- PAT ₹19 Cr:Up 51% QoQ — CFO cracked a smile.
- H1 Revenue ₹848 Cr:Stabilized, proving Q3 FY25’s chaos was a one-off.
- Order Book ₹9,100 Cr:Enough metal to mint optimism till FY29.
- Capex ₹63 Cr (H1):Robots, solar panels, and smart foundry dreams cost money.
- 2-Wheeler Share 44%:Zooming ahead, but margin-neutral.
- PV Segment +16% YoY:SUVs and hybrids fueling growth.
- Non-Auto 5%:DAR (Defense, Aerospace, Railways) taking shape.
3. Management’s Key Commentary
“We’ve transformed from domestic-focused to truly multinational.”(Translation: We now speak 18 languages of customer complaints.)
“Tariffs from the U.S. have dampened demand but offer opportunities for localization.”(Translation: Uncle Sam hurt us but may have gifted us market share.)
“Gross margins improved 300 bps to 48.9%.”(Translation: Robots don’t take tea breaks. Efficiency pays.) 🤖
“Order book stands strong at ₹9,100 Cr from FY24–FY29.”(Translation: We’ve got work lined up till the next Lok Sabha elections.)
“New CEO to take charge in April 2026.”(Translation: Rajeev exits gracefully; Sumit inherits both glory and tariffs.)
“Solar now covers 50–55% of our power needs.”(Translation: We literally run on sunshine — Elon, take notes.) ☀️
“DAR vertical progressing well with defense and aerospace discussions.”(Translation: Next stop — casting missiles instead of mufflers.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY | Commentary |
|---|---|---|---|---|
| Revenue (₹ Cr) | 429 | 464.5 | -7.7% | Tariffs & cyber-attacks dented sales. |
| Gross Margin (%) | 48.9 | 47.6 | +130 bps | Product mix magic. |
| EBITDA (₹ Cr) | 55.5 | 49.4 | +12% | Robots saved the day. |
| EBITDA Margin (%) | 12.9 | 11.9 | +100 bps | Cost control 101. |
| PAT (₹ Cr) | 19 | 12.6 | +51% QoQ | Comeback cast in alloy. |
| Capex (₹ Cr, H1) | 63 | — | — | Smart foundry expansion. |
| Order Book (₹ Cr) | 9,100 | 8,800 est. | +3.4% | Strong visibility till FY29. |
| Export Share (%) | ~30 | — | — | Tariffs add tension, not terror. |
(Summary: Margins are casting stronger, even if top line lost some shine.)
5. Analyst Questions
Q:What drove the 300 bps gross margin jump?A:Better mix, more robots, and zero pricing magic — purely sweat and silicon.
Q:New order wins?A:7 parts from 6 customers worth ₹257 Cr. One’s for an Italian supercar. Yes, that kind. 🏎️
Q:eAxle project status?A:Live and ramping up — EVs are keeping the foundry futuristic.
Q:FY27 outlook?A:“Double-digit growth” if tariffs behave; CFO refuses to jinx it.
Q:Revenue from U.S.?A:Around 7–8%. Tariff pain, but manageable.
Q:DAR vertical — real or just PR?A:Real. Defense orders are now part of the playbook.
6. Guidance & Outlook
Alicon seesdomestic tailwindsfrom GST rationalization, festive demand, and PV uptrends. Exports
