PPAP Automotive Ltd

Key developments and financials

• Divested 50% stake in PPAP Tokai India Rubber Private Limited to Tokai for ₹100 crore.
• Avinya Batteries merger approved; subject to regulatory sanction; planned completion FY27.
• Tools Division slump sale to Meraki; consideration via equity shares.
• Entered technical collaboration with Hutchinson (France) for advanced body sealings in India.
• New OEM wins: Mahindra & Mahindra, Tata Motors Sierra, MSIL E Vitara & Victoris, Renault-Nissan Duster.
• Interim dividend ₹1.00 per share; FY26 paid.
• Final dividend ₹1.50 per share; total ₹2.50 per share for FY26.
• Exceptional gain on sale of investment ₹4,978.61 lakhs.
• Total liabilities from financing activities ₹20,883.59 lakhs.
• Revenue from operations ₹53,629.54 lakh; total income ₹54,203.43 lakh (FY2026).

Financial Performance

• Q1 FY27 consolidated revenue INR156.4 crores; up 34.1% YoY
• EBITDA INR12.4 crores; up 33.3% YoY
• Lifetime orders INR131 crores; EV programs ~INR64 crores
• Aftermarket revenue up 30% YoY; 345 new SKUs; total 1,312 SKUs
• Distributors expanded to 155; aftermarket ~6% of revenue
• Tooling: capacity utilization 84%; 30 molds orders; pipeline 124 molds; output up 20%
• Industrial Products: exports ~30% of quarter revenue; <1% of total revenues
• Battery revenue up 4x YoY in Q1 FY27; FY26 up 1.28x; losses ongoing
• Q1 capacity utilization 73%
• JV exit proceeds INR100 crores; taxes INR8 crores; 25% for working capital; rest capex
• Debt target: aim to be debt-free at net level in 3 years
• JV exit completed in Q4 FY26

Capex and Projects

• Meraki Precision Tools Engineering Limited to commence operations from Q3 FY27
• Avinya Batteries Limited merger with PPAP to complete by Q4 FY27
• Tooling to hive off into Meraki by Q3 FY27
• Capex FY27: EPDM line 1 in Q2; two more EPDM lines; tooling expansion
• West area near Sambhaji Nagar land for expansion; EPDM capability development
• Sale proceeds allocation: 25% for working capital; rest for strategic capex

Strategic Partnerships

• Hutchinson technology partnership to offer modern body sealing systems
• Focus on India; not exclusive to domestic market; new products developed with Hutchinson
• Clarity on Hutchinson revenue translation expected by year-end
• Products developed with Hutchinson; broad opportunities across customers

Q&A Highlights

• Hutchinson revenue timing: by year-end expect clarity; focus on glass run channel
• Margins: raw-material rise ~4%; pass-through ~2%; balance under discussion; settlements by end Q2/early Q3
• Internal margin target exists; sustainable 12-13% margins; pre-COVID ~19% not expected
• Mahindra: SOP for Tier 1 in Q3; Tier 2 tooling development ongoing
• Battery: focus on minimizing losses; Q2 onward improvements; still a concern
• Aftermarket growth: 345 SKUs added; 1,312 total; 155 distributors; growth momentum to continue

Outlook and Risks

• Optimistic about sustained growth; diversified portfolio and disciplined cost management
• Industry headwinds: geopolitical developments and global supply chain dynamics
• Festival GST relief and easier financing support demand momentum

Meeting Details

• Date: 10 August 2026; earnings conference call for quarter ended 30 June 2026.
• Type and mode: group earnings conference call; mode: virtual.
• Organizer: PPAP Automotive Limited.
• Key participants: company management (roles not specified).

Purpose

• Purpose: earnings/results discussion for quarter ended 30 June 2026.

Availability

• Recording of the conference call uploaded on company website.
• Presentation shared with participants and uploaded on website.
• Intimation to stock exchanges dated 08 August 2026.

Consolidated financials

• Revenue from operations: INR 156.4 Cr, up 34.1% YoY.

Standalone financials

• Standalone revenue: INR 144.2 Cr, up 29.4% YoY.
• Standalone EBITDA: INR 12.1 Cr, up 23.7% YoY.
• Standalone PAT: INR 2.3 Cr, vs loss of INR 0.4 Cr in Q1FY26.

Key business highlights

• Lifetime orders at INR 131 Cr in Q1FY27, up 51.8% YoY.
• EV orders: INR 64 Cr, up from INR 11 Cr in Q1FY26.
• Order inflow balanced across EV and ICE platforms.
• OEM relationships with Maruti Suzuki, Tata Motors, Toyota, Honda, Renault, Mahindra and SMG strengthened.

Strategic partnership

• Entered exclusive license with Hutchinson to manufacture and sell advanced body sealing systems in India.

Outlook and margins

• Margins affected by elevated raw material costs; expected to ease gradually.
• Healthy order pipeline and ongoing product development support growth.

Record date and AGM actions

• AGM on 18 Sep 2026 at 11:30 AM via VC.
• Record date for dividend entitlement: 11 Sep 2026.
• Book closure: 12 Sep 2026 to 18 Sep 2026 (inclusive).
• Cut-off date for voting: 11 Sep 2026.
• Remote e-voting: 14 Sep 2026 9:00 to 17 Sep 2026 17:00.
• Dividend, if declared, paid within 30 days from AGM.

Financial results and material actions

• Standalone unaudited results for quarter ended 30 June 2026 approved.
• Consolidated unaudited results for quarter ended 30 June 2026 approved; auditors' review unmodified.
• 37,971 shares allotted under PPAP Employee Stock Option Plan 2022.
• Group divested 50% stake in PPAP Tokai India Rubber Private Limited (PTI) for ₹10,000 lakhs.
• PTI ceased to be accounted as a joint venture from 1 January 2026.
• Auditors expressed unmodified opinions on standalone and consolidated results.

Dematerialisation processing status

• Securities received for dematerialisation were processed (accepted/rejected) by the RTA for quarter ended 30 June 2026.
• Securities dematerialised have been listed on the stock exchanges where the earlier issued securities are listed.
• Physical certificates were mutilated and cancelled after verification; depository name substituted as registered owner within timelines.