CIE Automotive India Ltd shares have gained approximately 7% since the company's December quarter (Q4CY25) results were announced last week, as reported by Mint. The stock has also surged 20% over the past month, indicating strong investor confidence in the company's growth trajectory. According to Mint, the recent rally appears to reflect market expectations of improved performance in 2026-2027, with the stock trading at attractive valuations of 17.5x times FY27 estimated earnings.
The company delivered its best quarterly growth in many quarters with consolidated revenue increasing 15% year-on-year to ₹23.3 billion, as reported by ScanXNews. India revenues reached a record ₹15.4 billion, representing the highest-ever quarterly sales and indicating that demand is bouncing back. As reported by ScanXNews, this performance was driven by consistent growth trajectory with 7% in Q2 CY25, 9% in Q3 CY25, and 12% in Q4 CY25. The company added new orders worth about ₹8.7 billion in 2025, significantly aiding revenue visibility and signaling strong future prospects.
European operations showed mixed results with revenue growing 21% year-on-year to about ₹782 crore, according to Mint. However, the exchange rate translation impact was substantial at 17%, meaning sales growth in euro terms was only 4%. The company noted that light commercial vehicle production is expected to remain flat-to-slightly negative in 2026. Despite these challenges, management indicated that a significant portion of the restructuring process is now complete, and the region is expected to be more stable going forward.
CIE is actively expanding capacity across multiple segments including forgings, aluminium castings, composites, stampings and gears, as reported by Mint. The company is implementing capacity expansion plans across multiple verticals with gear and composites upgrading technologies for EV requirements, aluminum focusing on housings for electric vehicles, and iron castings increasing machining proportion. The company is actively transferring certain production capacities from European facilities to India, with plans to move fully automated presses and gear production cells by April 2026. Management indicated that capex for CY26 will be higher than the previous year's ₹3.8 billion, supporting planned capacity expansions and new project implementations.
According to Mint, growth trends in 2025 accelerated in the second half, aided by India's performance. As volumes increase, management expects India's margins to gradually improve due to operating leverage. Europe's EBITDA margin of around 13% remains lower than India's 17%, but the region is now more stable and unlikely to drag on overall numbers. The company's strong financial position with net financial debt of negative ₹18.8 billion and healthy cash generation capabilities support its expansion plans while maintaining financial stability.
