ASK Automotive Faces Financial Strain Amid Record Sales and High Leverage Concerns

ASK Automotive, a small-cap player in the Auto Components & Equipment sector, has recently undergone a financial trend adjustment reflecting its performance for the quarter ending September 2025. The company reported its highest net sales at Rs 1,053.70 crore, alongside a peak in PBDIT at Rs 137.12 crore and PBT less other income at Rs 98.81 crore. Additionally, the profit after tax reached Rs 79.80 crore, with earnings per share standing at Rs 4.05.
However, challenges persist for ASK Automotive. The operating profit to interest ratio is notably low at 11.08 times, indicating potential strain in covering interest obligations. The debt-equity ratio is concerningly high at 2.26 times, suggesting increased leverage, while the debtors turnover ratio is at its lowest, recorded at 1.47 times. Interest expenses have also surged to Rs 12.38 crore.

In terms of market performance, ASK Automotive has faced a decline over various periods, with a notable drop of 9.68% over the past month, contrasting with a 1.86% gain in the Sensex. Despite a modest 2.19% increase over the past year, the stock's performance remains under scrutiny as it navigates these financial challenges.