Earnings call transcript

AI summary - Q1 FY27 revenue reached INR 9,634 Cr, +10% y-y; EBITDA flat at INR 970 Cr; PAT INR 609 Cr, +3% y-y - Domestic MHCV volume +15% y-y; LCV volume highest ever Q1 at +21% y-y; exports down 18% due to UAE plant issues - Commodity cost pressures raised material cost to 71.5% of revenue; price hikes of ~1.2% in Q1 and further in July - Capex INR 153 Cr focused on new tech, alternate powertrains, EVs; net cash INR 2,252 Cr, +INR 1,431 Cr y-y - Strong growth in defense (+64%), power solutions (+51%), and financial subsidiaries; diversification reduces MHCV breakeven to ~1,000-1,500 units/month - Q2 margin outlook challenging due to commodity costs; relief expected from Q3; pricing and cost-saving levers active - New air suspension trucks launched, enhancing payload and TCO; strong customer reception for HIPPO tractors and TAURUS tippers - Domestic MHCV industry growth expected to accelerate beyond Q1's 13%, with July and August >20% - Export recovery underway; UAE plant normalizing; new Saudi plant accelerated - Regulatory costs expected but managed via TCO focus; BS7 implementation unlikely before 2031 - Network expansion with 33 new touch points in Q1, strong market share gains in North and Central regions