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CIE Automotive India Ltd

| Annual Report 2025-26

Report Source

⬤2nd Apr 26

Summary : CIE India is bullish on India's growth and EV transition, while strategically adapting to challenges in Europe.

Annual Report Analysis & Insights

Financial Disclosures

  1. Standalone Total Expenses: ₹42,918.73 Million (2025).
  2. Consolidated Total Expenses: ₹84,286.05 Million (2025).
  3. Cost of materials consumed (Standalone): ₹24,530.42 Million (2025).
  4. Employee benefits expense (Standalone): ₹4,867.53 Million (2025).
  5. Trade Receivables outstanding Ageing details provided for both standalone and consolidated.
  6. Standalone Total Income: ₹50,889.04 Million (2025).
  7. Consolidated Total Income: ₹95,077.31 Million (2025).
  8. Consolidated Revenue from Operations: ₹94,064.74 Million (2025).
  9. Segment Revenue (India): ₹61,430.89 Million (2025).
  10. Net cash from operating activities (Standalone): ₹6,639.53 Million (2025).
  11. Net cash used in investing activities (Standalone): ₹(4,337.49) Million (2025).
  12. Net cash from operating activities (Consolidated): ₹12,579.77 Million (2025).
  13. Net cash used in investing activities (Consolidated): ₹(7,847.36) Million (2025).
  14. Claims against company not acknowledged as debt.
  15. Capital expenditure contracted but not recognized as liabilities.
  16. Standalone contingent liabilities: ₹216 Million (2025).
  17. Consolidated contingent liabilities: ₹295 Million (2025).
  18. Total Assets (Standalone): ₹69,727.14 Million (2025).
  19. Total Equity (Standalone): ₹56,877.87 Million (2025).
  20. Total Assets (Consolidated): ₹107,567.88 Million (2025).
  21. Total Liabilities (Consolidated): ₹32,976.48 Million (2025).
  22. Material transactions with M&M and CIE Automotive S.A.
  23. All transactions are at arm's length and ordinary course.
  24. Aggregate annualised transactions with M&M not to exceed ₹25,000 million.
  25. Cash Pooling Arrangement with CIE Automotive S.A.
  26. Both standalone and consolidated financial statements presented.
  27. Consolidated revenue: 48.31% from subsidiaries, 51.69% from company operations.

Corporate Overview

  1. Operations in India, Spain, Lithuania, Italy, and Mexico.
  2. Two main geographies: India (~65% of consolidated sales) and Europe (~35% of consolidated sales).
  3. 24 plants in India, 4 plants in Europe/Mexico.
  4. Exports constitute 14% of sales.
  5. Volatile geopolitical security situation (USA-Israel-Iran war, Ukraine war).
  6. Steep tariffs on Indian auto components to USA.
  7. European automotive industry stagnation due to rising costs, EV transition uncertainty, and Chinese EV competition.
  8. Slower-than-anticipated EV transition pace.
  9. Manufacturing technology reshaping by automation, digitalization, and AI.
  10. Increased power tariffs in Maharashtra and changes in gratuity rules.
  11. Talent attrition and difficulty in finding skilled personnel.
  12. Highly dependent on automotive industry performance in India and Europe.
  13. Reliance on few key customers can impact margins.
  14. European forgings business dependent on ICE vehicles.
  15. Vulnerable to rising costs, power tariffs, and gratuity rule changes.
  16. Automotive components manufacturer with operations in India, Spain, Lithuania, Italy, and Mexico.
  17. Supplies to key automotive OEMs and Tier 1 suppliers.
  18. Specialized in high value-added processes, focusing on commercial and technological diversification.
  19. Global full-service supplier for automotive components and sub-assemblies.
  20. Cautious but optimistic about navigating challenges.
  21. Confident in strategic balance of growth, investments, and returns.
  22. Committed to continuous operational improvement.
  23. Expresses gratitude for support and trust.
  24. Serves key automotive OEMs and Tier 1 suppliers.
  25. Largest customer accounts for 32% of sales, second largest 11%.
  26. Top 25 customers contribute over 70% of sales.
  27. Sales by Technology (Global): Forgings (51%), Stampings (16%), Aluminium Castings (12%), Iron Castings (9%), Gears (8%), Composites (3%), Magnets (1%).
  28. Sales by End Use Segments (India): Light Vehicles (~50%), Two & Three Wheelers (~1/4th to 1/5th), Tractors (~1/6th), Heavy Trucks, Off Highway & Non Auto.
  29. Sales by End Use Segments (Europe): Light Vehicles (>50%), Heavy Trucks & Off Highway.
  30. Operates 20+ plants globally.
  31. Employs over 10,000 people (including temporary staff).
  32. Expanding production capacity within India.
  33. Improving product development capabilities and plants.
  34. Continue investing in India's production capacity.
  35. Improve product development and manufacturing capabilities.
  36. Develop healthy EV product portfolio for Europe.
  37. Prioritize high-volume, value-added parts in India.

Risk Factors

  1. Geopolitical situation volatility.
  2. European EV transition is slow.
  3. Rising costs and Chinese competition.
  4. Talent attrition and skill gaps.

Key Drivers

  1. Indian automotive market healthy.
  2. GST reforms turbocharged demand.
  3. Capacity expansion and new products.
  4. EV portfolio development in Europe.

Auditor’s Report

  1. Unmodified opinion for standalone financial statements.
  2. Unmodified opinion for consolidated financial statements.
  3. Revenue from sale of products.
  4. Estimated impairment loss on goodwill.
  5. Income tax and deferred tax.
  6. Pension benefits.

Board Commentary

  1. Mr. Shriprakash Shukla re-appointed as Director.
  2. Mr. Manoj Mullassery Menon's remuneration revised.
  3. Mr. Shriprakash Shukla appointed Chairman of Board.
  4. Mr. Rahul Desai resigned as CEO Stampings.
  5. Final dividend of ₹7 per equity share for FY2025.
  6. Dividend distributed from accumulated retained earnings.
  7. Pay-out ratio target up to 33% of consolidated PAT.
  8. Payment via electronic mode after May 5, 2026.
  9. Geopolitical situation volatility.
  10. Market trend changes.
  11. Cybersecurity and data privacy.
  12. Human capital and talent challenges.
  13. No unaccepted deposits under Companies Act, 2013.
  14. No instances of fraud reported by auditors.
  15. No non-compliance or penalties from regulators.
  16. No material changes affecting financial position.
  17. Capital expenditure contracted: ₹932.46 Million (2025).
  18. Capital work-in-progress: ₹1,295.69 Million (2025).
  19. No overdue projects or cost overruns.
  20. Focus on new facilities and existing upgrades.

Corporate Governance

  1. Strong focus on transparency and ethical practices.
  2. Internal Code of Professional Conduct for all employees.
  3. Whistle Blower Policy for reporting concerns.
  4. Anti-Sexual Harassment and Maternity Benefit Policies in place.
  5. Optimum mix of Executive and Non-Executive Directors.
  6. 50% Independent Directors, including two women.
  7. Independent Directors meet without management present.
  8. All Independent Directors meet regulatory criteria.
  9. Audit Committee: Four Independent Directors.
  10. Nomination and Remuneration Committee: Three Non-Executive Directors.
  11. Stakeholders Relationship Committee: Three Directors.
  12. CSR and Risk Management Committees also established.

Management Discussion & Analysis

Future Strategy

  1. Maintain optimal balance across growth, investments, returns.
  2. Expand capacities, develop higher value-added products.
  3. Protect European profitability, adapt to volume changes.
  4. Focus on EV order book for Indian market.

Industry Overview

  1. Global automotive industry is changing.
  2. China emerging as EV technology leader.
  3. Indian automotive market continues healthy.
  4. European automotive industry stagnating.

Macroeconomic Outlook

  1. Global growth steady at 3.3% in CY25.
  2. Global headline inflation expected to decline.
  3. Indian economy performing better than large economies.
  4. European growth expected to remain steady.

Operational Focus Areas

  1. Enhance efficiency via automation and robotization.
  2. Optimize asset utilization and plant restructuring.
  3. Increase renewable energy usage.
  4. Strengthen digital and technology capabilities.

Performance Drivers

  1. GST reforms turbocharged automotive demand.
  2. Operational efficiency improvements at plants.
  3. Increased green energy proportion, cost optimization.
  4. Debt reduction improved financial ratios.

Risk Control Measures

  1. VAPT and ISO 27001 certification for cybersecurity.
  2. HR strategy addresses talent challenges.
  3. ESG strategy focuses on green supply chain.
  4. Workforce restructuring to optimize costs.

Critical Risks

  1. Geopolitical situation volatility.
  2. Market trend changes.
  3. Cybersecurity and data privacy.
  4. Human capital and talent challenges.