Autoline Industries Ltd Q2 FY26: Metal Bends, Margins Curve – Pune’s Sheet Metal Juggler Does Gymnastics on a 9.8% OPM

1.At a Glance

Autoline Industries Ltd (AIL), Pune’s beloved “metal mangler” of the automotive world, has again proved that even sheet metal can do gymnastics if pressed (literally) hard enough. With a market cap of ₹301 crore and the stock currently chilling at ₹66.4 (down 40% in the last year because gravity works), the company still manages to flex its 9.8% operating margin and a respectable 14.9% ROE.

In the September 2025 quarter (Q2 FY26), sales rose 10.8% YoY to ₹173.31 crore – a neat comeback for a company whose products are mostly welded, stamped, and sometimes dented. However, PAT dipped 43.5% YoY to ₹2.78 crore, thanks to inflation, interest costs, and maybe karma for all that metal bending. The P/E stands at 21.4x while industry peers trade around 31.8x – so technically, this is the “discount section” of the auto component aisle.

Debt remains a sturdy ₹266 crore, giving it a debt-to-equity ratio of 1.54, because apparently, leverage is the new protein powder in the manufacturing gym.

2.Introduction

If Pune had a middle-class superhero who saved the auto industry one pressed panel at a time, it would probably be Autoline Industries Ltd. Born in 1996, during the era of Ambassadors and cable TV, AIL has grown into a mid-tier sheet metal manufacturing firm supplying everything from pedal control systems to exhaust assemblies for automotive giants like Tata Motors, Ashok Leyland, and Mahindra.

In simple terms, they’re the unsung heroes making the parts you never notice in your car until they fail. They don’t sell shiny sedans or roaring SUVs – they sell the things that hold those together.

But don’t let that fool you. Autoline’s business isn’t some sleepy Tier-II supplier game. The company has made a slick pivot into e-mobility through its subsidiary Autoline E-Mobility Pvt. Ltd., where it’s designing e-scooters and e-bikes like it’s the next Ola Electric (minus the headlines and fires).

It recently carried out a ₹155 crore capex, and promoters injected ₹22.5 crore via warrants at ₹92.5 per share – that’s like a strong family WhatsApp group deciding to double down on their own startup.

3.Business Model – WTF Do They Even Do?

Imagine your car without the foot pedals, exhaust pipes, or door hinges. Congratulations – you’ve just imagined a disaster. Now put those parts back – that’s where Autoline Industries comes in.

AIL manufactures sheet metal stampings, welded assemblies, and modules that form the skeletal structure of passenger and commercial vehicles. It supplies over3,000 productsacross categories such as:

• Small mechanical assemblies (pedal systems, parking brakes)
• Medium and large stamped parts (body panels, beams)
• Exhaust systems and tubular structures
• Non-automotive fabrications and evenhospital equipment(because apparently, the doctor also needs sheet metal).

Their secret weapon?Four divisions:

1. Concept, Design & Engineering:They offer 3D modeling, styling, virtual validation, and prototyping – basically, the automotive Tinder where metal parts meet precision.
2. Tool Room:One of Pune’s biggest, capable of press tool design and jig development.
3. Stamped Assemblies:Making critical body-in-white (BIW) structures for vehicles.
4. Mechanical Assemblies:Advanced robotic welding units making pedal, brake, and hinge systems.

They operatesix plantsacross Maharashtra, Uttarakhand, Karnataka, and Tamil Nadu, capable of processing1.2 lakh MTPA of steel– that’s enough to build a small nation’s worth of trucks.

4.Financials Overview

Consolidated Quarterly Results (₹ crore)

Despite revenue recovery, profit after tax took a hit thanks to rising interest and depreciation. The company still managed a solid operational rebound QoQ after last quarter’s near-zero EPS.

Witty Commentary:This quarter’s performance feels like that friend who hits the gym regularly but still eats samosas – the effort’s there, but the definition isn’t.

5.Valuation Discussion