CIE Automotive India shares plunged over 12% on Thursday, July 23, marking the stock's biggest single-day fall since March 2020, despite reporting robust financial performance for the June quarter. The stock was trading at ₹419.45 apiece at 12:28 p.m. on Thursday, down 11.2%, following the announcement of strong quarterly results and the resignation of Rajendra Vadlapudi as Chief Executive Officer of the Iron Casting Division. The stock has now turned negative for the year and is down more than 3% in 2026, making it among the top losers on the NSE 500. According to CNBC TV18, the sharp decline was attributed to both the company's quarterly results and Vadlapudi's resignation announcement.
CIE Automotive India delivered robust financial performance in the June 2026 quarter, with consolidated net profit rising 15.5% to ₹236 crore compared to ₹204 crore in the corresponding quarter of the previous year. The company's basic and diluted earnings per share (EPS) increased to ₹6.18 from ₹5.35 in the same period last year, demonstrating strong bottom-line performance during the quarter. According to the latest unaudited financial results approved by the board, this represents a significant improvement in the company's profitability metrics. However, the net profit saw a small sequential decline of 5.36% quarter-on-quarter from ₹249.37 crore in Q4 FY2026, reflecting localized margin pressures from raw material costs and price inflation arising from the conflict in West Asia.
The company's sales revenue increased 11% to ₹2,621 crore in Q2 FY2026, up from ₹2,369 crore recorded in the same quarter of the previous financial year. EBITDA increased 16% to ₹390 crore from ₹337 crore, with EBITDA margin improving to 14.9% from 14.2% a year earlier, indicating better operational efficiency and cost management. The India business continued to drive growth with revenue rising 13% year-on-year, while EBITDA margin for the domestic business declined by 80 basis points due to price inflation from the West Asia conflict. In Europe, revenue increased 7% year-on-year, with EBITDA margin expanding by 340 basis points, though the company noted that real sales growth in euro terms declined 6%, with reported revenue benefiting from a 13% positive impact from exchange rate movements.
Rajendra Vadlapudi has resigned as Chief Executive Officer of the Iron Casting Division, effective at the close of business on July 22, 2026, and has ceased to be a Key Managerial Personnel of the company. Vadlapudi had been associated with CIE Automotive for 16 years, though the company did not disclose the reason for his resignation. Separately, the company's subsidiary CIE Hosur disinvested its entire 27.89% stake in Ojaha Renewables Private Limited on June 25, 2026, for ₹1.62 crore to optimize capital, while simultaneously acquiring a 26.09% stake in Suryadeep GJ3 Project Private Limited on June 11, 2026, for ₹48 lakh to expand its captive green energy footprint. This strategic move demonstrates the company's commitment to lowering power tariffs via captive solar power integration and stabilization of global aluminum input costs.
For the half year ended June 30, 2026, the company reported net profit of ₹4,849.81 million on revenue of ₹52,325.03 million, compared to a net profit of ₹4,099.29 million on revenue of ₹46,416.32 million in the same period last year. This represents significant growth in the company's half-year performance, indicating sustained operational momentum throughout the first half of FY2026. The Indian auto ancillary sector has been riding on robust domestic demand, particularly led by utility vehicles and premium two-wheelers, with global component suppliers strategically shifting focus to Indian capacities to offset weak demand and high energy costs in European industrial segments. Despite the strong quarterly performance, the stock's sharp decline reflects investor concerns about the leadership transition and margin pressures from geopolitical factors.
