Axles India Annual Reports, Balance Sheet and Financials

Axles India Limited Standalone Balance Sheet (Rs in Crores)

Axles India Limited Standalone Profit & Loss Statement (Rs in Crores)

Axles India Limited Standalone Cash Flow Statement (Rs in Crores)

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

Axles India Limited generated strong cash flows from its core operations during 2025-26. Profit before tax increased slightly to ₹96.58 crores from ₹93.15 crores in the previous year, reflecting stable profitability. After adjusting for non-cash expenses such as depreciation and finance costs, operating profit before working capital changes stood at ₹99.98 crores. The company benefited from a significant reduction in inventories, which released cash into the business, although higher trade receivables resulted in some cash outflow. Overall, cash generated from operations amounted to ₹122.57 crores. After payment of income taxes, net cash inflow from operating activities stood at ₹98.81 crores, indicating healthy operational efficiency and strong cash-generating ability.

Cash Flow from Investing Activities

Cash flow from investing activities showed a much lower outflow compared to the previous year. Capital expenditure on property, plant, and equipment reduced substantially from ₹31.95 crores to ₹8.17 crores, indicating lower investment spending during the year. The company also earned ₹5.44 crores from the sale of fixed assets and received interest income of ₹2.27 crores. A small amount of ₹1.03 crores was invested in investments. As a result, the net cash outflow from investing activities decreased significantly to ₹1.49 crores from ₹29.84 crores in the previous year, improving the overall cash position of the company.

Cash Flow from Financing Activities

The financing activities of the company mainly involved repayment of borrowings and payment of dividends. The company repaid short-term borrowings amounting to ₹33.83 crores and long-term borrowings of ₹5.78 crores, while no new long-term borrowings were raised during the year. Interest payments remained low due to the reduced debt levels. Dividend payments also declined significantly from ₹35.68 crores to ₹10.19 crores. Consequently, net cash outflow from financing activities stood at ₹50.75 crores, reflecting the company’s focus on reducing debt and maintaining financial stability.

Overall Cash Position

The overall cash position of the company improved considerably during 2024-25. Net increase in cash and cash equivalents amounted to ₹46.57 crores compared to ₹19.21 crores in the previous year. As a result, cash and cash equivalents at the end of the year increased substantially to ₹76.06 crores from ₹29.49 crores. The strong cash balance indicates improved liquidity, efficient cash management, and enhanced financial flexibility for future operations and expansion plans.

Financial ratios of Axles India Limited:

Summary of the Ratios for the years 2026 and 2025:

Current Ratio

The current ratio of Axles India Limited improved significantly from 2.15 in 2024-25 to 2.79 in 2025-26. This indicates a stronger short-term liquidity position and shows that the company has a higher level of current assets available to meet its current liabilities. The increase reflects improved working capital management and provides greater comfort to creditors regarding the company’s ability to meet short-term obligations on time.

Debt Equity Ratio

The debt equity ratio declined sharply from 0.16 to 0.03 during the year, indicating a substantial reduction in dependence on borrowed funds. This very low ratio reflects a conservative capital structure and strong financial stability. The company is largely financed through shareholders’ funds rather than external debt, reducing financial risk and interest burden.

Debt Service Coverage Ratio

The debt service coverage ratio increased remarkably from 1.58 to 9.98. This substantial improvement indicates that the company generated significantly higher earnings available for servicing its debt obligations, including interest and principal repayments. A DSCR of nearly 10 times demonstrates excellent repayment capacity and strong operational performance during the year.

Return on Equity Ratio

The return on equity ratio slightly declined from 24% to 22%. Although there is a marginal reduction, the ratio still indicates strong profitability and efficient utilization of shareholders’ funds. The company continues to generate healthy returns for its equity investors, reflecting effective management and stable earnings performance.

Inventory Turnover Ratio

The inventory turnover ratio decreased from 4.71 to 3.17, suggesting slower movement of inventory during the year. This may indicate higher inventory holding levels, reduced sales velocity, or cautious stocking practices. Lower inventory turnover can increase carrying costs and may require the company to improve inventory management efficiency.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio improved slightly from 4.41 to 4.47. This indicates marginally better efficiency in collecting receivables from customers. The company appears to maintain effective credit control policies and timely collection practices, which support healthy cash flow management.

Trade Payables Turnover Ratio

The trade payables turnover ratio increased from 3.93 to 4.20. This shows that the company is paying its suppliers more quickly than in the previous year. Faster payment cycles may strengthen supplier relationships and enhance credibility, though it may also reduce the benefit of extended credit periods.

Net Capital Turnover Ratio

The net capital turnover ratio declined from 3.82 to 3.08, indicating comparatively lower efficiency in utilizing working capital to generate revenue. The reduction suggests that the increase in working capital was proportionately higher than the increase in sales, which may require closer monitoring of operational efficiency.

Net Profit Ratio

The net profit ratio remained stable at 8% in both years. This consistency indicates that the company maintained its profitability levels despite changes in operating conditions. Stable margins reflect effective cost management and operational control during the year.

Return on Capital Employed

The return on capital employed remained unchanged at 26%, reflecting consistent efficiency in generating profits from the total capital employed in the business. A ROCE of 26% is considered strong and indicates effective utilization of long-term funds and operational resources.

Return on Investments

The return on investments remained stable at 18% for both years. This indicates that the company continued to earn consistent returns from its investments and surplus funds. The stable ROI reflects prudent investment decisions and sustained income generation capability.