Double-digit domestic revenue growth for FY26
Management expects full-year domestic revenue growth in double digits, driven by replacement demand and premiumization.
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Capex outlay of ₹900-1,000 crore for FY26
Total capex for the year is guided at ₹900-1,000 crore, with ₹1,400 crore projects under implementation progressing on schedule.
Mexico margins to normalize from Q2
Management expects JK Tornel to return to normal margin levels from Q2 FY26, aided by raw material stability and volume recovery.
Premium PCR mix target of 40%
The share of premium PCR (16-inch and above) is targeted to increase from current 26% to around 40% in coming quarters.
Double-digit revenue growth expected from H2 FY27
Management expects more than 10% revenue growth driven by cumulative 16-17% price increases, volume growth, and capacity ramp-up in PCR and TBR segments.
EBITDA margin to recover to 11-13% in H2 FY27
Management targets returning to normal margin range of 11-13% from second half as raw material costs stabilize and price increases flow through, offsetting 20% sequential cost spike in Q1.
Full year EBITDA margin guidance of 10-11%
Despite Q1 margin compression, management expects full year margins around 10-11% given sequential improvement trajectory in remaining three quarters.
Mexico operations to show improvement from Q2 onwards
Geopolitical supply disruptions and labor issues at JK Tornell Mexico have been resolved, with production normalizing and expectations of better results for remaining three quarters.
EBITDA margin guidance of 13-15% maintained
Management reaffirmed the 13-15% EBITDA margin range despite expected 1-2% raw material cost increase, citing volume growth and premiumization.
New capex of ₹1,130 crore for capacity expansion
Expansion across TBR, ASLTR, and PCR locations to increase overall capacity by ~7% over 1.5-2 years.
PCR capacity ramp-up to full by July 2026
The new PCR line started in October 2025 will attain full capacity by July 2026.
Mid-double-digit revenue growth expected
Management expects revenue growth to remain in mid-double digits if current momentum continues.
Revenue growth expected to continue in FY27
Management expects demand momentum to continue, with auto industry growing mid-single digits in FY27.
Price hikes of 4-5% domestic, 5-7% export
Price increases have been implemented in Q1 FY27 to offset raw material cost inflation of 18-19%.
Capex of ~₹1,200 crore per year
Total expansion outlay of ₹6,110 crore (₹1,130 crore + ₹4,980 crore) to be spent over 3-4 years, with annual cash outflow of ~₹1,200 crore.
Debt-to-equity for new project at 2:1
The ₹4,980 crore expansion will be funded with a debt-to-equity ratio of 2:1, maintaining leverage ratios.