External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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Equity Bottom-Up

<ul><li>Sequential Margin Gains with Upside from Volume Recovery: Automotive Axle Ltd. (AAL) delivered a steady improvement in profitability, with EBITDA margins rising to 10.5% in Q2FY26, up from 9.8% in the preceding quarter and 10.3% in the corresponding period last year, reflecting effective cost management and an improved product mix.</li><li>Management remains confident of achieving mid-teen EBITDA margins (13%+) in the near term, contingent on a recovery in market volumes.</li><li>With higher capacity utilization and better fixed cost absorption expected in H2FY26, operating leverage is likely to further support margin expansion and sustain the upward trajectory in profitability</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sequential Margin Gains with Upside from Volume Recovery: Automotive Axle Ltd. (AAL) delivered a steady improvement in profitability, with EBITDA margins rising to 10.5% in Q2FY26, up from 9.8% in the preceding quarter and 10.3% in the corresponding period last year, reflecting effective cost management and an improved product mix.Management remains confident of achieving mid-teen EBITDA margins (13%+) in the near term, contingent on a recovery in market volumes.With higher capacity utilization and better fixed cost absorption expected in H2FY26, operating leverage is likely to further support margin expansion and sustain the upward trajectory in profitabilityContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Automotive Axles Ltd - New Business Model Unlocks Margin Upside

<ul><li>Automotive Axles Limited (AAL), established in 1981 as a joint venture between the Kalyani Group (India) and Meritor (USA), is a leading manufacturer of axles and braking systems for commercial vehicles, defence, and off-highway applications.</li><li>Headquartered in Mysore with plants in Mysore, Pantnagar, and Jamshedpur, the company employs over 2,000 people and offers a comprehensive range of drive and non-drive axles, gears, and brakes backed by advanced heat treatment, welding, and NVH testing capabilities.</li><li>Supplying marquee OEMs, including Tata Motors, Ashok Leyland, Daimler India, Volvo Eicher, and Mahindra Trucks, AAL also exports to the US, Europe, and Asia, leveraging Meritor’s global technology access.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Automotive Axles Limited (AAL), established in 1981 as a joint venture between the Kalyani Group (India) and Meritor (USA), is a leading manufacturer of axles and braking systems for commercial vehicles, defence, and off-highway applications.Headquartered in Mysore with plants in Mysore, Pantnagar, and Jamshedpur, the company employs over 2,000 people and offers a comprehensive range of drive and non-drive axles, gears, and brakes backed by advanced heat treatment, welding, and NVH testing capabilities.Supplying marquee OEMs, including Tata Motors, Ashok Leyland, Daimler India, Volvo Eicher, and Mahindra Trucks, AAL also exports to the US, Europe, and Asia, leveraging Meritor’s global technology access.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pick of the Week: Automotive Axles Ltd - 20th September, 2025

<ul><li>Industry Outlook: We expect the M-HCV market volumes to marginally decline YoY in FY25 (~400,000 MHCV volumes).</li><li>As per the management, Q4FY25E is expected to perform better sequentially with ~1,10,000 MHCV units (largely flat YoY). For FY26E, we expect low single-digit growth in the MHCV segment.</li><li>Long-term growth drivers: (1) Product diversification to new bus axles (expect axles for 13.5/15 mt buses to begin commercial production by FY26E post final trials by the end-user OEMs) (2) electric vehicle (EV) axles (3) Increased export share post plant modernising (expect parent Meritor to play a vital role).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Industry Outlook: We expect the M-HCV market volumes to marginally decline YoY in FY25 (~400,000 MHCV volumes).As per the management, Q4FY25E is expected to perform better sequentially with ~1,10,000 MHCV units (largely flat YoY). For FY26E, we expect low single-digit growth in the MHCV segment.Long-term growth drivers: (1) Product diversification to new bus axles (expect axles for 13.5/15 mt buses to begin commercial production by FY26E post final trials by the end-user OEMs) (2) electric vehicle (EV) axles (3) Increased export share post plant modernising (expect parent Meritor to play a vital role).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Automotive Axles Ltd - Focus on Product Diversification & New Share of Businesses

<ul><li>Industry Outlook: Automotive Axles' topline dropped 15.4% YoY in Q2FY25, mainly due to a 12.9% dip in MHCV industry volumes (with anchor customer Ashok Leyland experiencing a notable 21.6% pullback) and softer steel prices which was partially offset by higher exports, expansion in aftermarket sales, and the fulfilment of backlog orders.</li><li>Management expects industry volumes to remain steady for FY25 (with H2 projected to be similar or slightly better than H1) and anticipates a gradual recovery in FY26.</li><li>New product launches: With the introduction of new axle products for goods carriers (MS185, MS177) and buses, the company aims to increase its business share with Ashok Leyland to over 65% (up from the current 63%).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Industry Outlook: Automotive Axles' topline dropped 15.4% YoY in Q2FY25, mainly due to a 12.9% dip in MHCV industry volumes (with anchor customer Ashok Leyland experiencing a notable 21.6% pullback) and softer steel prices which was partially offset by higher exports, expansion in aftermarket sales, and the fulfilment of backlog orders.Management expects industry volumes to remain steady for FY25 (with H2 projected to be similar or slightly better than H1) and anticipates a gradual recovery in FY26.New product launches: With the introduction of new axle products for goods carriers (MS185, MS177) and buses, the company aims to increase its business share with Ashok Leyland to over 65% (up from the current 63%).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Automotive Axles Ltd - Strong Financials; Robust Long-Term Potential in the MHCV Segment

Thematic (Sector/Industry)

<ul><li>Axis Top Picks: We are proud to share that our Axis Top Picks basket delivered impressive returns of 43% over the last one year, beating the benchmark Nifty 50 index (21.6% return over the same period) by a wide margin.</li><li>A few picks that reported excellent returns included PNC Infratech (15.5%), CIE Automotive India (8.5%), Coal India (8.1%), TVS Motor Company (5.8%), and Bharti Airtel (3.8%).</li><li>You can refer to our latest report here. Pick of the Week (PoW): POW calls delivered an astounding monthly strike rate of 88% in May’24. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Axis Top Picks: We are proud to share that our Axis Top Picks basket delivered impressive returns of 43% over the last one year, beating the benchmark Nifty 50 index (21.6% return over the same period) by a wide margin.A few picks that reported excellent returns included PNC Infratech (15.5%), CIE Automotive India (8.5%), Coal India (8.1%), TVS Motor Company (5.8%), and Bharti Airtel (3.8%).You can refer to our latest report here. Pick of the Week (PoW): POW calls delivered an astounding monthly strike rate of 88% in May’24. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Key Highlights of the Month – Fundamental

India

Automotive Axles Ltd. manufactures drive axle assemblies and related auto parts.

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Automotive Axles (ATXL IN)

Automotive Axles Ltd - New Business Model Unlocks Margin Upside

Automotive Axle Ltd. (AAL) delivered a steady improvement in profitability, with EBITDA margins rising to 10.5% in Q2FY26, up form 9.8% in the...

Axis Direct

Pick of the Week: Automotive Axles Ltd - 20th September, 2025

Automotive Axles Limited (AAL), established in 1981 as a joint venture between the Kalyani Group (India) and Meritor (USA), is a leading...

Axis Direct

Automotive Axles Ltd - Strong Financials; Robust Long-Term Potential in the MHCV Segment

Management expects industry volumes to remain steady for FY25 (with H2 projected to be similar or slightly better than H1) and anticipates a...

Axis Direct

Key Highlights of the Month – Fundamental

We are proud to share that our Axis Top Picks basket delivered impressive returns of 43% over the last one year, beating the benchmark Nifty 50...

Axis Direct

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Automotive Axles Ltd - New Business Model Unlocks Margin Upside

Automotive Axle Ltd. (AAL) delivered a steady improvement in profitability, with EBITDA margins rising to 10.5% in Q2FY26, up form 9.8% in the...

Axis Direct

Pick of the Week: Automotive Axles Ltd - 20th September, 2025

Automotive Axles Limited (AAL), established in 1981 as a joint venture between the Kalyani Group (India) and Meritor (USA), is a leading...

Axis Direct

Automotive Axles Ltd - Focus on Product Diversification & New Share of Businesses

As per the management, Q4FY25E is expected to perform better sequentially with ~1,10,000 MHCV units (largely flat YoY). For FY26E, we expect low...

Axis Direct

Automotive Axles Ltd - Strong Financials; Robust Long-Term Potential in the MHCV Segment

Management expects industry volumes to remain steady for FY25 (with H2 projected to be similar or slightly better than H1) and anticipates a...

Axis Direct

Key Highlights of the Month – Fundamental

We are proud to share that our Axis Top Picks basket delivered impressive returns of 43% over the last one year, beating the benchmark Nifty 50...

Axis Direct