At a Glance
Automobile Corporation of Goa Ltd (ACGL) is back in the game with Q1 FY26 results that scream steady compounding. Revenue surged to ₹256 Cr (+26% QoQ), PBT jumped to ₹30.9 Cr (+34% QoQ), and net profit hit ₹23 Cr (+35% QoQ). Margins improved to 11% as the company benefits from stronger demand for bus bodies and pressed parts. Stock trades at a modest 21x P/E, making it a rare auto play that isn’t priced like Tesla.
Introduction
ACGL is Tata Motors’ low-profile cousin who quietly builds bus bodies while Tata grabs all the headlines. Backed by Tata’s supply chain and Goa’s tax perks (read: chill vibes), the company keeps expanding revenue without burning cash. Over the last three years, profit CAGR is a staggering 71%—proof that even a sleepy bus maker can turn into a compounding machine.
Business Model (WTF Do They Even Do?)
- Core Business: Bus body manufacturing & pressed auto parts.
- Clients: Tata Motors & other OEMs.
- Revenue Split: Bus bodies dominate, components add stability.
- Competitive Edge: Tata parentage, proven quality, and low-cost production.
- Growth Driver: Rising demand for commercial vehicles and government contracts (electric buses, school buses, etc.).
Financials Overview
| ₹ Cr | Q1 FY26 | Q4 FY25 | YoY |
|---|---|---|---|
| Revenue | 256 | 217 | +18% |
| Operating Profit | 28 | 20 | +40% |
| OPM % | 11% | 9% | Expanding |
| Net Profit | 23 | 17 | +35% |
| EPS (₹) | 37.9 | 27.7 | +36% |
Comment: This isn’t just a bus—it’s a profit bus.
Valuation
- P/E Method:
- EPS (TTM) ≈ ₹85
- Industry P/E ≈ 25x
- Fair Value ≈ ₹2,100
- EV/EBITDA Method:
- EBITDA FY25 ≈ ₹59 Cr
- EV/EBITDA sector ≈ 10x
- Fair Value ≈ ₹1,900
- DCF (Quick):
- Growth 12%, WACC 11%
- FV ≈ ₹1,850–2,100
👉 Fair Value Range: ₹1,850–2,100. At ₹1,805, stock is slightly undervalued.
What’s Cooking – News, Triggers, Drama
- Strong Q1 performance led by bus body demand.
- Electric Bus Contracts in pipeline via Tata Motors ecosystem.
- Dividend track record remains solid (34% payout).
- Risks: High client concentration (Tata Motors), raw material cost swings.
Balance Sheet
| ₹ Cr (Mar 2025) | Value |
|---|---|
| Total Assets | 465 |
| Liabilities | 217 |
| Net Worth | 254 |
| Borrowings | 86 |
Roast: Balance sheet is clean, debt is tiny, and reserves keep climbing.
Cash Flow – Sab Number Game Hai
| ₹ Cr | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Operating | -4 | 61 | 10 |
| Investing | -29 | -11 | -14 |
| Financing | 28 | -22 | 11 |
Comment: Cash flows are volatile, but FY25 was positive. Needs consistency.
Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 20% |
| ROCE | 20% |
| P/E | 21x |
| PAT Margin | 8% |
| D/E | 0.3 |
Roast: Ratios show a lean, efficient business—not a superstar, but a reliable earner.
P&L Breakdown – Show Me the Money
| ₹ Cr | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Revenue | 506 | 584 | 661 |
| EBITDA | 31 | 43 | 52 |
| PAT | 28 | 38 | 47 |
Roast: Revenue keeps climbing, profit margins inching up—slow but steady.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Bosch | 18,087 | 2,012 | 59x |
| Uno Minda | 16,774 | 934 | 66x |
| Endurance | 11,561 | 782 | 46x |
| ACGL | 714 | 52 | 21x |
Roast: Compared to peers, ACGL is the budget-friendly performer—cheap P/E, good margins.
Miscellaneous – Shareholding, Promoters
- Promoters: 49.8% (Tata Motors + Goa Govt)
- FIIs: ~0% (they’re missing out)
- Public: 50.2%
Stable shareholding, no dilution drama.
EduInvesting Verdict™
ACGL may not make headlines like Tata Motors, but it’s quietly compounding at a 30%+ clip. Q1 FY26 shows strong demand and margin improvement. With Tata’s backing, upcoming EV bus opportunities, and healthy balance sheet, it’s positioned well.
SWOT Analysis
- Strengths: Tata link, strong margins, low debt.
- Weaknesses: Small size, high client dependence.
- Opportunities: Electric bus boom, public transport revamp.
- Threats: Commodity price swings, competition from global OEMs.
Final Word: A small-cap gem riding the Tata bus. Just don’t expect it to overtake Bosch anytime soon.
Written by EduInvesting Team | 30 July 2025SEO Tags: Automobile Corporation of Goa, ACGL, Q1 FY26 Results, Tata Motors Bus Bodies
