Munjal Auto Industries Ltd Q2 FY26 – The Hero Group’s Metal Symphony Hits a Composite Note (Sales ₹584 Cr, PAT ₹13 Cr, P/E 30.9x, EV/EBITDA 8.6x)
1. At a Glance
Welcome to the Munjal Auto Industries Ltd (MAIL) circus — where exhausts, fuel tanks, and windmill blades all dance to the same Hero Group dhol. The company just belted out its Q2 FY26 results with revenue of ₹584 crore, up 11.8% YoY, but profits — oh dear — slipped like a greasy muffler, down ~40% to ₹13 crore. With a market cap of ₹838 crore and a P/E of 30.9x, the stock trades at an “optimistic uncle” valuation for a company growing slower than your neighborhood kirana’s UPI counter. Still, the dividend yield of 1.19% offers a little comfort while you wait for the next exhaust boom. The Hero Group’s 74.8% promoter holding ensures control remains firmly in the family garage, while ROE (10.1%) and ROCE (11.8%) whisper, “steady, but not sexy.”
In short — Munjal Auto is that dependable friend who always shows up, even if he never picks up the dinner bill.
2. Introduction
Incorporated in 1985, Munjal Auto Industries Ltd has evolved from a humble muffler maker into a multi-material maestro balancing metal, composite, and moulding businesses. As part of the Hero Group, its DNA is pure “two-wheeler royalty,” but over time, it’s tried to reinvent itself into a diversified engineering player spanning automotive, renewable, aerospace, defense, and railways.
But diversification doesn’t always mean domination. While MAIL now makes everything from exhaust systems to windmill blades, its financials show that Hero MotoCorp still calls the tune — contributing over 90% of total revenue. That’s like running a multiplex but screening only Sholay every day for thirty years.
Still, the management is making some bold moves — expanding into composites via Indutch Composites Technology Pvt. Ltd. (ICTPL), buying new land in Sanand Industrial Estate, and planning capacity expansions that sound very “Atmanirbhar.” Whether it leads to real growth or just another shiny muffler in the inventory remains to be seen.
MAIL’s story is classic Indian industry drama — old family ties, supplier dependency, new-age ambitions, and the occasional Income Tax Department cameo. Ready to rev up? Let’s dig into the balance sheet engine and see what’s under the hood.
3. Business Model – WTF Do They Even Do?
If you ever looked at a Hero Splendor and admired its exhaust or fuel tank, congratulations — you’ve already experienced Munjal Auto’s craftsmanship. The company’s business model is like a buffet for the manufacturing gods — sheet metal, composites, BIW (body-in-white) assemblies, moulds, and complete systems.
Let’s decode the menu:
Exhaust Systems: Over 22 models for two-wheelers, with Italian design inputs from Lafranconi. Essentially, MAIL makes the “thump” behind your ride.
Steel & Spoke Rims: Capable of producing 10,000 rims per day, backed by Japanese and Taiwanese machinery. It’s a literal spin business.
Fuel Tanks: Designed with Samsung Ind Co. of South Korea — these range from 15 to 100 liters, catering to four-wheelers and commercial vehicles.
BIW Assemblies: Seats, beams, pillars — basically, all the boring but necessary car parts that never get Instagram love.
Composites: Through ICTPL, the subsidiary builds windmill blades, moulds, and renewable components, serving clients like Nordex, Enercon, and Senvion India.
Revenue split (FY23) shows 79% from auto components, 20% from composites, and a humble 1% from scrap — proving that even the waste knows its place.
In short: MAIL is the Hero Group’s engineering backbone, a manufacturing multitasker trying to blend its traditional steel swagger with futuristic composite cool.
4. Financials Overview
Quarterly Results (Consolidated, ₹ Crore)
Metric
Sep 2025 (Latest)
Sep 2024 (YoY)
Jun 2025 (QoQ)
YoY %
QoQ %
Revenue
584
522
491
+11.8%
+18.9%
EBITDA
26
31
28
-16.1%
-7.1%
PAT
13
20
19
-35.0%
-31.5%
EPS (₹)
1.12
1.86
1.58
-39.8%
-29.1%
Commentary: Sales are rising modestly, but profit is wheezing — maybe those windmill blades caught the slowdown breeze. The operating margin of 5% reflects raw material cost pressures and Hero’s OEM pricing power. The annualized EPS of ₹4.48 gives a forward P/E of ~18.7x, which isn’t terrible but not exciting either. In short, MAIL’s top line hums, but its bottom line coughs like an unserviced scooter.
