At a Glance
Asahi India Glass (AIS) just served up its Q1 FY26 results with all the glamour of a foggy windshield. Revenue rose to ₹1,229 Cr (+8.5% YoY), but net profit nosedived 29% to ₹55 Cr. Margins? Thinner than the glass they make (OPM 16%). Stock is up 2% today at ₹850, but with a P/E of 64x, investors are basically paying for the reflection, not the substance.
Introduction
AIS is the undisputed king of glass in India – automotive, architectural, you name it. Backed by Japan’s AGC and Maruti Suzuki, they’ve carved a niche in both cars and buildings. But Q1 results show the shine fading a bit – profits are cracking, costs are rising, and the only thing clear is that the stock price is pricing in a perfect mirror.
Business Model (WTF Do They Even Do?)
AIS operates a “sand-to-solutions” model – they take sand, melt it, and turn it into high-margin glass.
- Segments: Auto glass (OEM + aftermarket), architectural glass, and services like glazing and fabrication.
- Edge: AGC tech, strong OEM tie-ups (Maruti, Hyundai), dominant market share.
- Weak Spot: Highly cyclical with auto sales, high energy costs eat profits.
Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹1,229 Cr (+8.5% YoY)
- EBITDA: ₹192 Cr (OPM 16%)
- Net Profit: ₹55 Cr (-28.5% YoY)
- EPS: ₹2.3
FY25 Recap
- Revenue: ₹4,594 Cr
- PAT: ₹367 Cr
- ROE: 13.7%
Auditor’s Take: High P/E, moderate growth, and a margin drop – investors, adjust your lenses.
Valuation
- P/E Method
- EPS (TTM): ₹14.4
- Industry P/E: 40–60
- Fair Value ≈ ₹14.4 × 50 = ₹720
- P/B Method
- Book Value: ₹110
- Industry P/B: 4–6
- Fair Value ≈ ₹110 × 5 = ₹550
- DCF (10% growth assumption)
- Estimated value: ₹700 – ₹800
🎯 Fair Value Range: ₹700 – ₹800
Current price ₹850 is glass-half-full overpriced.
What’s Cooking – News, Triggers, Drama
- Energy Cost Inflation: Eating into margins.
- Automotive Demand: Growth from SUVs keeps auto glass afloat.
- Architectural Segment: Stable but no fireworks.
- Fines & Corporate Action: Minor fine by exchanges, AGM in September.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 6,790 |
| Liabilities | 4,145 |
| Net Worth | 2,645 |
| Borrowings | 2,696 |
Remarks: High leverage, but manageable – still, not something to toast champagne over.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Operating | 402 | 653 | 720 |
| Investing | -320 | -924 | -1,191 |
| Financing | -52 | 330 | 458 |
Remarks: Operating cash is solid, but aggressive capex is draining the coffers.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 13.7% |
| ROCE | 12.6% |
| P/E | 64x |
| PAT Margin | 7% |
| D/E | 1.0 |
Remarks: P/E hotter than the furnaces; ROE okay but doesn’t justify valuation.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 4,019 | 4,341 | 4,594 |
| EBITDA | 795 | 724 | 766 |
| PAT | 362 | 325 | 367 |
Remarks: Revenue rising, EBITDA yo-yo, PAT flat – like a glass ceiling.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Bosch | 18,087 | 2,012 | 58x |
| Schaeffler | 8,547 | 1,058 | 60x |
| Uno Minda | 16,775 | 934 | 66x |
| Asahi Glass | 4,691 | 345 | 64x |
Remarks: AIS trades at premium multiples but delivers lower growth vs peers.
Miscellaneous – Shareholding, Promoters
- Promoters: 54.1% (stable)
- FIIs: 3.7% (slightly down)
- DIIs: 1.8%
- Public: 40.4%
Sarcasm Alert: Promoters hold on tight while public plays “spot the next breakout.”
EduInvesting Verdict™
AIS is a market leader in glass but is currently trading at luxury-car valuation for a mid-range sedan. Q1 FY26 shows cost pressures and declining margins, yet the stock trades at a steep 64x P/E – basically priced for perfection.
SWOT Quickie
- Strengths: Tech tie-up with AGC, OEM dominance, integrated value chain.
- Weaknesses: High debt, thin margins, expensive stock.
- Opportunities: Rising auto demand, premium glass products.
- Threats: Energy cost spikes, auto slowdown, cheap imports.
Final Word: Great company, but the stock price is as fragile as the glass it sells. Watch it closely – one crack in earnings, and it shatters.
Written by EduInvesting Team | 30 July 2025
SEO Tags: Asahi India Glass Q1 FY26 Results, AIS Share Analysis, Auto Glass Stocks India
