CIE Automotive India Reports Mixed Q2 Results with Strong Domestic Growth Offset by European Challenges

CIE Automotive India Limited reported consolidated sales of ₹22,906 million for the second quarter of 2025, representing a 4% increase compared to the same period last year. However, the company's EBITDA margin declined to 15.7% from 17.7% in Q2 2024, primarily due to restructuring costs in its European operations.

The automotive components manufacturer's Indian operations demonstrated robust performance, with sales rising 7% to ₹14,591 million in Q2 2025. The India segment maintained an EBITDA margin of 17.5%, down slightly from 18.4% in the previous year. The company noted that its growth exceeded the weighted average market growth of approximately 5% in India.

In contrast, CIE's European operations faced headwinds, with sales declining 1% to ₹8,315 million in Q2 2025. The European segment's EBITDA margin compressed significantly to 12.5% from 16.6% in the prior year quarter. The company attributed this decline to one-time restructuring costs at its Italian subsidiary Metalcastello, which impacted EBITDA by 2.4% of sales.

For the first half of 2025, consolidated sales decreased 1% to ₹44,868 million compared to the same period in 2024. The half-year EBITDA margin stood at 16.3%, down from 17.7% in H1 2024. Net profit for the six-month period was ₹4,099 million, an 8% decline from the previous year.

The company's balance sheet remained strong with net financial debt of ₹7,639 million as of June 30, 2025, compared to ₹12,022 million at the end of 2024. The net financial debt to EBITDA ratio improved to -0.52 from -0.81 at year-end 2024.

CIE Automotive India operates through multiple subsidiaries across India and Europe, manufacturing automotive components for various vehicle segments including passenger vehicles, commercial vehicles, tractors, and two-wheelers. The company serves as a supplier to major automotive manufacturers in both regions.

Indian automotive market data showed mixed performance across segments during Q2 2025. Light vehicles under 6 tons grew 3.2% year-over-year, while medium and heavy commercial vehicles increased 8.3%. The tractor segment recorded strong growth of 12.7%, while two-wheeler production remained nearly flat with 0.7% growth.

European automotive markets continued to face challenges, with light vehicle production declining 1.7% and medium and heavy commercial vehicle production falling 7.6% in Q2 2025 compared to the previous year.

The company paid a dividend of ₹7 per share totaling ₹2,656 million during the quarter, representing the final dividend for the financial year ended December 31, 2024. CIE's management indicated its focus remains on expanding Indian operations to offset the declining European market performance.

Looking ahead, the company expects continued growth in its Indian business while acknowledging uncertainty in European market evolution. Industry forecasts suggest modest growth prospects for Indian automotive segments over the medium term, while European markets face ongoing headwinds.