Automobile Corporation of Goa Q1 FY27: Revenue ₹249 Cr, 2,712 Bus Bodies, and an 18.4x Multiple

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1 — At a Glance

A company in Sattari, Goa, spent the June 2026 quarter building 2,712 bus bodies. The previous June it built 2,784. That is a difference of 72 buses across three months, which sounds like a rounding error until you look at what it did to the bottom half of the statement.

Revenue came in at ₹248.94 crore against ₹256.41 crore a year earlier. Operating profit was ₹13.15 crore against ₹27.87 crore. Net profit was ₹11.22 crore against ₹23.07 crore. Sales moved by single digits; profit halved. Management attributes the volume decline primarily to lower International Business volumes arising from the geopolitical situation in the Middle East, and notes domestic business remained stable.

Operating margin for the quarter was 5%, against 11% in the June 2025 quarter. The company’s own release puts EBITDA margin at 6.69% for Q1 FY27 versus 12.35% a year prior. Both numbers are on the record; they describe the same three months from slightly different angles.

The financial year just ended was the largest in the company’s history — FY26 revenue of ₹933.65 crore against ₹660.77 crore in FY25, net profit of ₹69.89 crore against ₹46.60 crore. Shareholders approved a final dividend of ₹22.50 per share at the AGM on 22 July 2026, payable 20 August.

So the record year closed, and then the first quarter of the next one arrived with a margin that looks nothing like it. What happened in between involves buses, the Middle East, and one very large customer.

2 — Introduction

Automobile Corporation of Goa Limited was incorporated in 1980, jointly promoted by EDC Limited — a Government of Goa undertaking — and Tata Motors Limited. Forty-six years later, the arrangement has largely held: Tata Motors holds 48.98% directly, EDC holds 6.66%, and the company builds bus bodies.

The last two years have brought more paperwork than usual. In September 2025, Shrinivas V. Dempo ceased as Chairman and Independent Director, and Yatin Kakodkar was appointed Non-Executive Chairman effective 12 September 2025. In November 2025, following the Tata Motors demerger effective 18 November, 29,82,214 shares representing 48.98% were transferred to the new Tata Motors entity, with the promoter change effective 21 November. In January 2026, Mr. Mitesh Gadhiya resigned as Company Secretary and Compliance Officer. Pranab Ghosh has been CEO since 1 April 2024.

CARE Ratings, in its September 2025 update, reaffirmed long-term bank facilities at CARE AA-; Stable and short-term facilities at CARE A1+, and noted that the TML demerger was not expected to affect ACGL’s operations, as the business would continue under TML’s commercial vehicle segment post-demerger.

The company operates five manufacturing plants across four locations — Honda and Buimpal in Goa, Jejuri in Maharashtra, and Dharwad in Karnataka. Bus-building capacity was reported at 14,400 units per annum in FY26, up from 10,000 in the two years prior. Bus sales volume for FY26 was 9,328 units against 7,265 in FY25.

Q1 FY27 results were approved by the Board on 5 August 2026, audited by B S R & Co. LLP with an unmodified opinion.

3 — Business Model: WTF Do They Even Do?

Two divisions. The Pressing division makes pressed parts, components, sub-assemblies and assemblies for a range of automobiles. The Bus Body Building division makes bus bodies and their component parts. In the June 2026 quarter, pressing brought in ₹19.37 crore of external revenue and bus bodies brought in ₹229.58 crore — which is to say one division is the business and the other is a hobby that happens to be profitable.

The bus body segment’s revenue share has climbed steadily: 87% in FY23, 87% in FY24, 90% in FY25, 92% in FY26. The product portfolio runs to staff transport buses, luxury buses, city transport buses, defence buses, airport buses, school buses, sleeper coaches, special application vehicles, and sheet metal products. If it carries people and has a Tata badge on the front, there is a decent chance the shell around them started life in Sattari.

Then there is the customer question, which is really the customer answer, singular. Tata Motors contributed ₹233.36 crore of the ₹248.94 crore in quarterly revenue — the only party contributing more than 10%. CARE puts TML at approximately 89% of FY25 revenue. The Screener key points note 91.8% in FY24. ACGL caters to roughly one-third of TML’s ICE bus body requirements, per CARE.

The relationship extends past invoicing. ACGL