Automotive Axles Limited (AAL) is a prominent joint venture established in 1981 between Bharat Forge Limited, Pune, and Meritor Heavy Vehicle Systems, USA. With manufacturing facilities in Mysore (Karnataka), Pantnagar, and Jamshedpur, the company has established itself as the largest independent manufacturer of Rear Drive Axle Assemblies in India.
For over 43 years, Automotive Axles Limited has specialized in manufacturing reliable and long-life Medium & Heavy duty Drive axles, Front Steer axles, Non-Drive axles, Axles for Defence & Off-Highway applications, and Drum & Disc Brakes. The company's core business involves the manufacturing of axles and brakes across its multiple plant locations.
As of recent market data, Automotive Axles has a market capitalization of ₹2,542.59 Crore (as of May 16th, 2025), with a reported revenue of ₹2,078 Crore and a profit of ₹156 Crore. The promoter holding in Automotive Axles Ltd has remained stable at 71.04% as of March 2025.
The company's recent quarterly performance has shown mixed results. Net profit for the quarter ended December 2024 rose by 1.10% to ₹39.58 Crore, compared to ₹39.15 Crore in the previous year's corresponding quarter. However, sales declined by 1.96% to ₹530.74 Crore in the same period, down from ₹541.33 Crore in December 2023.
For the second quarter of FY25 (ended September 2024), net profit declined by 20.23% to ₹35.97 Crore from ₹45.09 Crore in Q2 FY24. Sales also saw a decrease of 15.35% to ₹494.68 Crore from ₹584.41 Crore in the corresponding period of the previous year.
• Market Capitalization: ₹2,542.59 Crore (as of May 16th, 2025)
• 52-week High: ₹2214
• 52-week Low: ₹1520
• P/E Ratio: 15.30
• P/B Ratio: 2.90
• Current Dividend Yield: 1.90%
• 3-Year Return: 6.82%
• Promoter Holding: 71.04% (Bharat Forge Limited & Meritor Heavy Vehicle Systems, USA)
Automotive Axles Limited operates through a crucial joint venture structure established in 1981, involving Bharat Forge Limited (Pune, India) and Meritor Heavy Vehicle Systems LLC, USA, which holds a 35.52% equity stake. This partnership leverages the strengths of both entities to manufacture a comprehensive range of products including drive and non-drive axles, front steer axles, specialty and defense axles, as well as drum and disc brakes and suspension systems.
A significant recent development involves a revised supply agreement, as per the company's stock exchange filing. This new agreement enables Automotive Axles to directly supply products to certain Original Equipment Manufacturers (OEMs) who were previously serviced through MHVSIL under an older agreement dating back to February 27, 1999. This change is expected to streamline supply chains and enhance direct customer engagement.
The company is committed to manufacturing excellence and technological advancement. Meritor India has invested in upgrading Automotive Axles' facilities, including the inauguration of an Industry 4.0-enabled axle assembly facility and a state-of-the-art research and development center at Mysore. Meritor India's broader manufacturing footprint includes facilities in Mysore, Jamshedpur, Hosur, and Pantnagar, complemented by engineering centers in Bengaluru and Mysore.
Automotive Axles Ltd has a robust presence in specialized applications beyond conventional commercial vehicles, particularly in the defense and off-highway sectors. Through its collaboration with Bharat Forge, a Kalyani Group company known for catering to Indian OEMs manufacturing defense vehicles, and Meritor's acquisition of Axle Tech, the joint venture aims to fully service this growing sector. Bharat Forge contributes its expertise in supplying defense equipment for vehicle carriers, while Meritor provides essential under-chassis items, including multi-axles and suspension systems for OEMs in this segment.
The company boasts an extensive market reach and distribution network. With an aftermarket distribution center located in Pune, Automotive Axles has over 120 retail outlets spread across India. Furthermore, its market presence extends internationally to Sri Lanka, Bangladesh, and Nepal, allowing it to effectively serve both domestic and international customers.
Automotive Axles Limited continues to prioritize innovation and quality, firmly establishing itself as a leading manufacturer in the axle and brake systems segment for commercial vehicles. Its strong technological capabilities and strategic partnerships enable it to cater to diverse market segments, including the specialized defense and off-highway applications.
