1. Opening Hook
Just when global auto supply chains thought geopolitics had taken a coffee break, US import duties decided to bench Rolex Rings for two months straight. Fifty-three percent tariffs, confused importers, frozen shipments, and CFOs suddenly doubling up as trade lawyers. Q2 FY26 became less about forging steel and more about forging patience.
Management, however, sounded less like victims and more like people waiting for traffic lights to turn green. Europe quietly picked up slack, domestic markets behaved decently, and the US—after flirting with absurd tariffs—finally blinked.
If you think this call was only about a bad quarter, think again. There’s pent-up business, delayed programs, sticky customers, and a confident belief that FY26 is the awkward middle child before FY27’s glow-up.
Read on. The real story begins after the tariffs cool off.
2. At a Glance
- Revenue down 7% QoQ – Blame Washington, not Rajkot.
- EBITDA slipped to ₹69 cr – Margins held firm despite export drama.
- PAT at ₹44 cr – Profits dipped, dignity intact.
- Exports fell to 43% – US hit pause, Europe pressed play.
- Domestic share at 57% – Home market quietly saved the quarter.
- Net debt negative – Even tariffs couldn’t touch the balance sheet.
3. Management’s Key Commentary
“Imports to the US
were charged up to 53% duty.”
(Yes, that wasn’t a typo. That was peak policy chaos 😏)
“Importers kept shipments on hold due to uncertainty.”
(No one likes paying duties higher than EBITDA margins.)
“Duties reduced from 53% to 28% effective November.”
(Finally, some adult supervision in trade policy.)
“Europe and domestic markets showed positive growth.”
(Backup dancers stepping into the spotlight.)
“We expect exports to regain momentum from December onwards.”
(Festival season optimism meets spreadsheet hope.)
“FY26 growth will be muted; FY27 will be bullish.”
(Translation: This year is a write-off, next year is the party 🎯)
“Company remains debt-free with strong cash flows.”
(When in doubt, flex the balance sheet 💪)
4. Numbers Decoded
Metric Q2 FY26 Q1 FY26 Q2 FY25
---------------------------------------------------------------
Revenue (₹ cr) 272 292 300
EBITDA (₹ cr) 69 77 75
EBITDA Margin ~25% ~26%