Overview

• Management reiterated FY26 aftermarket growth guidance of 6–7% for two-wheelers and 10–11% for four-wheelers, with the LAB franchise expected to outpace industry growth by 3–5%.
• Reported market share stands at roughly 27–28% in 2W OEM, about 36% in 4W OEM, and above 35% in both 2W and passenger-vehicle aftermarket segments.
• EBITDA margin is guided to improve from 11.5% in Q1FY26 to 13% in Q4FY26 and 14% in FY27, supported by a tubular plant revival, lower power costs and a new recycling facility, though antimony prices and a weaker rupee weigh near term.
• Phase 1 lithium cells are now slated for H2 FY27 at 1 GWh (NMC) scalable to 2 GWh, with capex indicated at about $50 million per GWh and LFP under evaluation; Motilal Oswal models a 2 GWh start by H1 CY27 with Rs 25 billion for initial facilities and flags returns improving only at larger scale.
• FY26 capex totals Rs 1,200 crore (Rs 800 crore for lithium and Rs 400 crore for lead-acid), with cumulative new‑energy investment estimated at Rs 2,500 crore by FY27E; Nuvama stays Buy with a Rs 1,120 target, while Motilal Oswal remains Neutral at Rs 1,030 citing caution on li‑ion returns.