• Achieved highest absolute quarterly consolidated sales and EBITDA in company history at INR 25,400 million sales and INR 4,300 million EBITDA
• India operations sales of INR 16,200 million grew 15% YoY, improving from 12% in Q4 CY25 and 9% in Q3 CY25
• European operations achieved EBITDA margin of 15.7% versus 13.9% in Q1 CY25 and 12.7% in Q4 CY25 due to restructuring benefits
• New order wins of approximately INR 3,500 million annual turnover in Q1, with 11% from EV sector
• European EBT reached approximately INR 1,000 million in Q1 despite flat market conditions
• Adding capacity across nearly all verticals including three new forging lines, stamping lines, and iron casting molding lines
• Strong growth momentum in two-wheeler crankshaft and races business, particularly excited about new crankshaft projects
• Export orders from India to Europe gaining traction in iron castings, gears, and machining segments

CIE Automotive India reported strong Q1 CY26 results with consolidated sales of INR 25,400 million (up 16% YoY) and record quarterly EBITDA of INR 4,300 million at 16.9% margin. India operations grew 15% YoY despite export headwinds from geopolitical issues, while European operations showed margin recovery to 15.7% from restructuring activities. Management expressed confidence in continued growth momentum driven by new order wins of INR 3,500 million annually, though highlighted near-term margin pressures from gas/energy cost inflation and aluminum price increases.

India operations delivered sales of INR 16,200 million with 15% YoY growth, though EBITDA margin compressed to 17.6% from 18.6% in Q1 CY25, primarily due to loss of INR 87 million one-time subsidy (0.6% of sales), gas and material cost increases, and energy tariff hikes in Maharashtra. Sequential margin improved 0.8% from Q4 CY25's 16.8%. European operations posted sales of INR 9,200 million (17% YoY growth entirely from favorable forex, flat in euro terms) with margin recovery to 15.7%. Consolidated results showed sales of INR 25,400 million (16% YoY), EBITDA of INR 4,300 million, EBIT of INR 3,400 million, and EBT of INR 3,300 million, representing YoY growth of 16%, 18%, and 20% respectively. Consolidated EBITDA margin stood at robust 16.9%, EBIT at 13.2%, and EBT at 12.9%. Q1 CY26 CapEx in India exceeded INR 900 million (close to 6% of sales), with full-year guidance of INR 4,000-5,000 million representing 7%+ of turnover.

Management demonstrated confident optimism about growth trajectory despite acknowledging near-term challenges. CEO Ander Arneza emphasized that new orders are ramping up with positive momentum expected to continue, particularly highlighting export orders and two-wheeler business expansion. The team stressed their strong competitive position for European market consolidation opportunities, citing superior financial strength and operational excellence. CFO KJ Prakash focused on margin resilience despite input cost pressures, noting sequential improvement and initiatives to mitigate inflation impacts. Management emphasized aggressive capacity expansion across all verticals except magnets, with 95% of growth CapEx concentrated in India. They expressed comfort with customer diversification and new order pipeline extending 15-18 months ahead. On geopolitical risks, management acknowledged multiple threats (supply chain disruption, inflation, fertilizer shortages affecting monsoon) but noted these haven't materially manifested yet. The tone was measured optimism - confident in structural positioning while transparent about tactical headwinds.

Multiple significant headwinds were discussed: (1) Geopolitical tensions impacting exports, with schedules down in both US and European markets affecting overall export growth which was mid-single digits versus 10% domestic market growth; (2) Input cost inflation from gas prices, energy tariffs in Maharashtra, and aluminum prices surging due to Middle East supply disruptions - collectively impacting margins by approximately 0.4%; (3) Anticipated aluminum price pass-through will cause margin dilution starting Q2 due to one-month lag; (4) European light vehicle market forecasted slightly negative (0-3%) with heavy trucks growing low single digits (3-5%) on reduced base; (5) Export orders delayed with certain US market projects not materializing, particularly EV programs awarded to Meta Castello came in at only 10% of expected volumes; (6) Potential supply chain disruptions for customers could temporarily impact demand schedules; (7) Risk of petrol price increases affecting vehicle demand in India; (8) Fertilizer supply chain risks combined with potential bad monsoon could impact second half demand; (9) Indian retail inventory buildup at distributor levels affecting March production; (10) Chinese competition in European markets threatening 16 million unit stable production levels; (11) Hyundai underperformance in Q1 (2% growth vs 10% market) showing customer concentration risk.

Revenue Outlook: Expect to outpace market growth (market forecast: light vehicles 8-10%, two-wheelers similar range) driven by new order ramp-up starting Q2. Export performance expected to improve significantly Q2 onwards regardless of geopolitics due to new orders. Calendar year 2026 expected to be a 'good year' with continuation of current growth trend.

Margin Outlook: India margins expected to face pressure in Q2 from aluminum price pass-through causing dilution despite absolute EBITDA stability. European margins expected to remain stable around 15% range. Some sequential improvement possible in India as cost mitigation initiatives take effect.

Key Targets:

• Full-year India CapEx of INR 4,000-5,000 million (7%+ of turnover)
• Target to grow market-plus in India (3-5 percentage points above industry)
• 95% of growth CapEx concentrated in India operations
• Adding three new forging lines, stamping lines, and iron casting capacity

The Q&A session revealed analyst focus on three main areas: (1) sustaining growth momentum as GST benefits fade and bridging the gap to promised market outperformance, (2) managing margin pressures from input cost inflation particularly aluminum and energy, and (3) timing and magnitude of European consolidation benefits and India export opportunities. Management responded confidently on growth drivers citing specific new order wins and capacity additions, while being transparent about near-term margin headwinds from aluminum pass-through lag in Q2. On consolidation, they set realistic medium-term expectations rather than promising near-term benefits. Analysts probed multiple times on geopolitical risks (gas shortages, supply chain, export weakness) with management acknowledging risks but emphasizing limited current impact while remaining vigilant. The tone was constructive with management providing detailed, specific answers backed by numbers. Key concern areas were margin sustainability given cost inflation and whether capacity additions (INR 4,000-5,000 million CapEx) would generate adequate returns given European market weakness and export uncertainties. Management's emphasis on diversified customer base, new order pipeline visibility of 15-18 months, and sequential margin improvement appeared to satisfy most concerns.