Automotive Axles Ltd(AUTOAXLES)

NSE: AUTOAXLESBSE: 505010

₹ 1,590+1.20%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 2,403 crWebsite: www.autoaxle.comUpdated: 24 Oct 2026

About

Automotive Axles Ltd (AAL), incorporated in 1981 as a joint venture between Bharat Forge Limited and Meritor Heavy Vehicle Systems LLC (USA), manufactures rear drive axle assemblies, air brakes and trailer axles for vehicles in the 7 - 55 tonne GVW range at three plants in India. The company generated FY26 revenue of Rs 2,177.73 crore and is recognised as a leading manufacturer of rear drive axle assemblies in India, supplying major domestic OEMs and exporting subassemblies and child parts to Meritor's global plants.^[1][2]

Products

Core portfolio covers rear drive axle assemblies, S-Cam actuated quick-change air brakes and trailer axles for 7 - 55 tonne GVW vehicles; broader range includes front steer axles, defence axles, off-highway axles, drive and non-drive axles, drum brakes, and crown wheel pinions.^[1]
The MS185 high-tonnage single axle for 4x2 tractor-trailers, launched with one customer ~3 - 4 years ago, is now ramped across all major OEMs and was described as a key volume driver in Q3 and Q4 FY26.^[3][4]
New products entering production in FY26: 394 next-generation brake (production end-December 2025), upgraded tipper axle (pilot production Q3 FY26), and a 15m bus axle (full production Q2 FY26).^[4][5]
Two EV axle families launched in Q2 FY26: one for 4x2 electric tractor-trailers and one for 8x4 electric tippers, extending the traditional mechanical portfolio into EV applications.^[5]
A new 160 tandem axle for the heavy-duty segment entered pilot batch production in Q1 FY27 and is moving into production mode with one large customer.^[6]

Manufacturing operations

Three manufacturing plants located at Mysuru (Karnataka), Rudrapur (Uttarakhand), and Jamshedpur (Jharkhand), plus one office - totalling four national locations and no international locations as of FY25.^[1]
Capacity utilisation reached over 90% in Q4 FY26 at peak OEM demand, easing to 70 - 80% in April - May 2026, which management characterised as typical for Q1.^[3]
The axle assembly line and Housing Line 1 at Mysuru are enabled with Industry 4.0 technology, improving Overall Equipment Effectiveness (OEE) and enabling product and part traceability.^[1]

Key operating numbers

MHCV industry volumes closed FY26 at ~480,000 units, 16% above FY25, with Q4 FY26 a record quarter for each major OEM; Q1 FY27 printed ~110,000 units.^[3][6]
Export mix was 13% of revenue in Q1 FY27, above the company's typical 8 - 12% range; in Q2 FY26 exports were slightly below double-digit as the North America M&HCV market was down 30 - 40%.^[6][5]
Raw material (metal) cost as a percentage of revenue was ~65% in Q1 FY27, improving from ~68% in FY26.^[6][3]
Defence revenues fluctuate between 5 - 10% of total revenue in Q1 FY27 depending on tender timing, with RFQ-to-SOP cycles of 3 - 10 years described as typical for the segment.^[6]
Technical fee paid to Meritor HVS (India) under the direct-OEM billing model is 4 - 4.5% of revenue (FY26), varying with domestic-export mix; all FY26 quarterly results incorporate this fee.^[3]

Customers and distribution

Ashok Leyland accounts for 60 - 70% of revenue; Mahindra and Daimler each contribute high double-digit percentages; these shares have been maintained for several years (Q2 FY26).^[5]
Tractor-trailer mix shift at Ashok Leyland from 8x2 trucks to 4x2 configurations structurally halves AAL's axle and brake content per vehicle, a structural headwind even when customer volumes grow.^[5]
All export sales are routed through Meritor HVS (India) Ltd., Mysuru; AAL's client base spans global markets including China, USA, France, Italy, and Brazil.^[1]
Won the Ashok Leyland Superlative Supplier silver award for aftermarket performance in Q2 FY26, with aftermarket delivery performance at 98%; also received UD Trucks Supplier Award 2024 and Tata Motors Best Supplier recognition.^[5][1]
LCV/ICV revenue share is less than 5% of total revenue (FY26); the business is concentrated in medium and heavy commercial vehicles.^[3]

Expansion and capex

Phase 1 and Phase 1A capex program totals INR 120 crore; approximately 40% had been invested as of Q1 FY27 with some production already commenced on new lines; completion targeted by end of December 2026.^[6][3]
The program is expected to deliver 25 - 30% capacity improvement, sized to handle an MHCV market peak of around 500,000 units.^[6][4]
FY27 capex is expected to be similar to FY26 (which exceeded INR 70 crore) as remaining Phase 1 and 1A commitments are executed; a next phase will be defined in the following 6 - 12 months.^[3]
Management has reaffirmed a long-term revenue target of INR 4,000 - 5,000 crore (by FY30), with exports expected to be a larger contributor than current levels.^[3]

New product pipeline

Bus axle product for the 9m and 12m city bus segment is under redesign: the low-floor height regulatory concern (400mm mandate for 9m+ buses) is resolved, but gear specifications are being reworked to meet upcoming pass-by noise norms before launch.^[6][4]
Next-generation high-horsepower axles for 350 - 400 HP engines are being readied for localisation when the Indian market shifts from its current ~200 HP average; no fixed timeline given.^[4]

Certifications and quality

AAL holds IATF 16949:2016, ISO 14001:2015, ISO 45001:2018, CQI-9 (heat treatment), and CQI-15 (welding) certifications, and is Level-2 certified by JUSE Japan for 5S standards.^[1]

Market Cap

₹2,403 Cr

High / Low

₹2,126 / 1,536

Stock P/E

14.2

Price / Book

2.3

Book Value

₹727

EPS

₹108.8

No. of Shares

1.51 Cr

ROCE

22.3%

ROE

15.8%

OPM

10.6%

Debt / Equity

0.00

Sales

₹2,178 Cr

Net Profit

₹164 Cr

Promoter holding

71.0%

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