ASAL lifts operating margin as Q2 revenue rises 32.91% QoQ
Expenses grew slower than revenue, but operating margin remained 5.79 percentage points below the sector-peer median.
Filed 23 Oct 2026, 15:51 IST · after market close · Automotive Stampings & Assemblies Ltd (ASAL)
Key takeaways
- Standalone revenue rose +32.91% QoQ while expenses grew +31.61%, lifting operating margin by 0.92 percentage points to 6.49%.
- Net profit rose +114.71% QoQ to Rs 10.07 cr, although the tax rate increased 0.95 percentage points to 26.12%.
- At 6.49%, operating margin was 5.79 percentage points below the 12.28% median of 40 reporting Consumer Discretionary peers.
Price around the results
Revenue acceleration lifted operating profit
ASAL's standalone revenue increased +32.91% QoQ, and the faster scale-up helped operating profit rise +54.93%. Net profit increased +114.71% to Rs 10.07 cr, taking EPS to Rs 6.35. The improvement was therefore led by operating performance rather than a material contribution from other income.
Slower cost growth supported the margin gain
Expenses grew +31.61% QoQ, slower than revenue growth of +32.91%, which widened operating margin by 0.92 percentage points. Interest rose +3.37% and depreciation increased +1.85%, adding only modestly to the cost base. Other income contributed 3.01% of pre-tax profit, so it was not a large driver of reported earnings; the tax rate, however, rose 0.95 percentage points.
Margin improved sequentially but trails peers
Operating margin rose from 5.57% in Q1FY27 to 6.49% in Q2FY27. It was still 5.79 percentage points below the 12.28% median for the 40 Consumer Discretionary peers that had reported, leaving ASAL ninth from the bottom on this measure.
Results were filed after market close
The standalone results were filed after market close on 23 October 2026. There is no post-results stock reaction to assess yet.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹337 cr | ₹253 cr | +32.91% |
| Other income | ₹0 cr | ₹1 cr | -29.31% |
| Expenses | ₹315 cr | ₹239 cr | +31.61% |
| Operating profit | ₹22 cr | ₹14 cr | +54.93% |
| Operating margin (%) | 6.49% | 5.57% | — |
| Interest | ₹4 cr | ₹4 cr | +3.37% |
| Depreciation | ₹5 cr | ₹5 cr | +1.85% |
| Profit before tax | ₹14 cr | ₹6 cr | +117.57% |
| Tax | ₹4 cr | ₹2 cr | +125.32% |
| Net profit | ₹10 cr | ₹5 cr | +114.71% |
| EPS (₹) | ₹6.35 | ₹2.95 | +115.25% |
Operating margin of 6.49% compares with a Consumer Discretionary sector median of 12.28% across 40 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +12.91% | +12.23% |
Volume on the results session was 24.27× its 20-day average.
What to watch
- Whether operating margin holds above 6.49% after its 0.92-percentage-point QoQ improvement.
- Whether expenses continue to grow more slowly than revenue, after +31.61% versus +32.91% QoQ.
- Whether the gap to the 12.28% peer median narrows from 5.79 percentage points.