Revenue beat, margins squeezed by commodity; growth slowing

Delivered ₹25,338 Cr, up 36.3% YoY; Q2 wholesales 1,35,100 units, up 42%

International business grew 177% YoY; order confirmed on track

H1 capex ₹1,112 Cr against H1 revenue estimated ~₹48 Cr (implied 2.3%)

Delivered OPM 8.5%; QoQ PAT fell 50.9% despite 22.6% revenue growth, signaling margin pressure

Management hedged growth deceleration vs Q2 42% after acknowledging 21.5% comp base

Q2 beat: 42% volume growth vs prior 'double-digit' guidance. Q3 now expected single-digit due to 21.5% prior-year comp base and demand moderating.

Commodity cost impact 590 bps this quarter; management now expecting 150-200 bps further rise in Q3, signaling persistent inflation vs prior quarter's hope of stabilization.

Management flagged supply-chain capacity constraints (aggregates, batteries, imported components), capacity actions underway. Lost some ILMCV and EV small-commercial demand due to supply limits.

H1 capex 2.5% of revenue; guided 2-4% range unchanged. Investment spending ₹597 Cr Q2 (vs ₹686 Cr prior year), staying disciplined.

70,000 units delivered over FY27-FY28 at 4.5-5k/month. Non-Indonesia business also strong; Africa, Nepal, Sri Lanka stabilizing post-geopolitical disruption.

Transaction on track; best and final offer EUR 14.40/share approved; approaching 35% tender. Remaining shares expected to tender in final 24-48 hours; confident of completion by 30 October 2026.

Fleet utilization started weak early Q2, improved throughout quarter. Transporter profitability started weak on diesel price hike but gradually recovered as rates stabilized.

Happy with current margin structure post-PLI; continue to improve further for post-PLI environment.

Domestic ASPs up on light/small CV percentage; Indonesia order (light CV export) is below-portfolio ASP, dilutive. But overall export business remains margin accretive.

No concern heard from financiers engaged; they are in good place. Transporter profitability weak early Q2, recovered during quarter as diesel price stabilized and contracts shifted.

Capacity question has two sides: in-house capacity (some debottlenecking actions) and supply-chain capacity (larger bottleneck). Supply constraints in castings, machining, sheet metal stamping, imported aggregates have tightened. In-house actions ongoing Q2, more in Q3, some in Q4.

Non-cyclical business approximately 20% of revenue. Focus area to hedge CV industry cyclicality; intended growth area.

Still in development laps; exact cost impact unclear. Early assessment: value add for customers vs just regulatory introduction. Still determining cost pass-through mechanism and customer value equation.

SCV EV penetration around 12% Q2; expect to rise Q3 due to supply chain debottlenecking. Expect significant uptick Q4 post-Delhi/NCR EV mandate (Jan 1 registration). Q4 penetration ~20% expected. Will assess Q4 level and provide full FY28 outlook offline with detailed discussions.

Calibrated price increases taken; focus on demand-momentum preservation vs derailment. Cost efficiency is controllable lever; supply chain actions ongoing. Some actions not anticipated early-year complete in Q2; more in Q3, some in Q4. Increasing top line due to demand a lever. Doesn't commit to FY28 price targets.

Question answered frequently. Should go along with overall economy and GDP growth.

Prior Q3 saw 21.5% growth (high base). Post-GST demand pull settled. Growth now expected to moderate vs Q2's 36%.

Offer EUR 14.40/share; 35% tendered; tender period closes 26 Oct 2026; management confident of completion by 30 Oct.

Steel at 52-week highs (+40% YoY); rubber synthetic costs inflated. Q2 absorbed 590 bps headwind.

Management balancing margin recovery vs demand momentum risk. Full price pass-through uncertain.

Q2 capex ₹483 Cr (vs ₹686 Cr PY); R&D ₹616 Cr. Capital investments ₹258 Cr (product development ongoing).

Steel/rubber at cycle highs. 590 bps YoY impact Q2; 150-200 bps further rise expected Q3. Price increases (1-2% remaining) may not fully offset.

Q2 delivered 36% revenue, 42% volume growth. Q3 guidance now single-digit vs 21.5% prior-year comp. Post-GST demand pull has normalized; CV industry secular growth ceiling emerging.

Bottlenecks in castings, machining, sheet metal, imported aggregates (batteries, EV components). Management flagged lost demand in ILMCV and EV small-commercial. Capacity actions ongoing Q2-Q4 but lag demand recovery.

Transporters faced profitability pressure early Q2 post diesel-price hike. While recovery began during quarter, trend remains fragile. CV NBFCs reported asset-quality deterioration; MSME credit stress emerging. Demand elasticity risk if profitability doesn't sustain.

70k Indonesia order is light/small CV segment, below-portfolio ASP and margin. While order provides volume growth and export presence, it dilutes consolidated margin structure. Magnitude material (~5% of expected sales).