Munjal Auto Industries Stock Surges 15% on Q1 Turnaround, Profit Jumps to Rs 28.50 Crore

Munjal Auto Industries Stock Surges 15% on Q1 Turnaround, Profit Jumps to Rs 28.50 Crore​

Munjal Auto Industries shares rocketed by nearly 15%, climbing to a high of Rs 116.60 on the BSE on Thursday. The sharp rally follows the announcement of robust financial performance for the company in its first quarter ended June 30, 2026. The stock opened at Rs 110.50 from its previous close of Rs 100.40, establishing a new 52-week high during intraday trading.

Financial Highlights: Profit Rebounds after Net Loss​

The auto components maker reported significant growth in revenue and profitability for the quarter. Consolidated revenue from operations surged 42.36% year-on-year, reaching Rs 699.01 crore, up from Rs 491.02 crore in the prior year's corresponding quarter. Total income for the quarter stood at a strong Rs 719.40 crore.

Munjal Auto achieved a substantial turnaround in its bottom line. Consolidated profit after tax registered at Rs 28.50 crore, marking a stark contrast to the net loss of Rs 1.26 crore reported in Q1 of the previous year. On a quarter-on-quarter basis, net profit witnessed a healthy increase of 47.57% from the previous quarter's figure of Rs 19.31 crore.

Segment Performance Drives Strong Growth​

Munjal Auto operates through two primary business segments: auto components and composite products. Both divisions showcased impressive top-line expansion during the first quarter ended June 30, 2026. The auto components segment generated revenue of Rs 415.39 crore, significantly up from Rs 296.76 crore in the prior year's quarter.

The company’s composite products and moulds segment, which includes Indutch Composites Technology Private Limited, performed exceptionally well. This division recorded revenue of Rs 283.63 crore, representing a 45.99% growth compared to the Rs 194.26 crore achieved in the year-ago period. The segment profit for this division was noted at Rs 22.84 crore against Rs 17.13 crore in the corresponding quarter.

Analysis of Overall Costs and Earnings Per Share​

The company reported key details regarding its expenditures and earnings performance. Total expenses for the consolidated entity stood at Rs 684.19 crore, up from Rs 623.49 crore recorded in the previous year's period. Cost of materials consumed rose to Rs 521.37 crore from Rs 359.73 crore last year.

Earnings per share reflected improved profitability across the board. Consolidated basic and diluted earnings per share stood at Rs 2.58 for the quarter. This is an improvement from Rs 1.58 in Q1 of the previous year, and a substantial recovery from the negative figure of Rs 0.03 seen in the preceding quarter.

Financial Positioning and Mark-to-Market Gains​

The financial statements also highlighted gains related to investments. Munjal Auto recorded an unrealised mark-to-market gain of Rs 16.23 crore on its mutual fund investments. This gain, classified under other income due to fair valuation requirements, offsets a mark-to-market loss of Rs 14.06 crore that was noted in the quarter ended March 2026.

Standalone net profit for Munjal Auto stood at Rs 20.07 crore against Rs 8.37 crore in the corresponding period last year. The subsidiary Indutch Composites Technology contributed Rs 283.63 crore to total revenues and recorded a net profit after tax of Rs 8.55 crore.