This article first appeared on GuruFocus .
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Consolidated Revenue (Q4 FY26):INR 175.5 crores, up 18.6% year-on-year and 25.7% quarter-on-quarter.
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EBITDA (Q4 FY26):INR 16.9 crores, increased by 12.9% year-on-year.
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Capacity Utilization:Improved to approximately 78%.
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Consolidated Revenue (FY26):INR 567 crores.
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New Business Secured (FY26):Approximately INR 840 crores across EV and ICE platforms.
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Aftermarket Business Growth (FY26):36% over the previous year.
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Tooling Business Growth (FY26):12.1% with utilization levels over 90%.
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Industrial Products Division Growth (FY26):38%.
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Battery Business Revenue Growth (FY26):Increased by 1.28 times compared to the previous year.
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Final Dividend (FY26):1.5 rupees per equity share, total dividend for the year 2.5 rupees per equity share.
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Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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PPAP Automotive Ltd ( BOM:532934 ) reported a strong sequential recovery in Q4 FY26, with consolidated revenue growing by 18.6% year-on-year and 25.7% quarter-on-quarter to INR175.5 crores.
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The company successfully completed the divestment of its stake in the joint venture with Tokai Kogyo Company Limited, Japan, for INR100 crores, significantly strengthening its financial reserves.
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The aftermarket business recorded an impressive growth of 36% over the previous year, driven by an expanding distribution network and a diversified product portfolio.
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The tooling business improved its utilization levels to over 90% and grew by 12.1% in FY26, maintaining a robust order pipeline across automotive and non-automotive sectors.
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The battery business showed encouraging operational improvement, with revenue increasing by 1.28 times in FY26, indicating a move towards a turnaround phase.
Negative Points
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The company faced challenges with slower than expected demand recovery from automotive OE customers, impacting revenue growth and leading to a variance against revised guidance.
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Lower sales volume during the quarter affected operating leverage, thereby impacting profitability.
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Profitability at the PAT level was further impacted by mark-to-market losses on investments and a one-time employee benefit obligation due to labor code implementation challenges.
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The external operating environment remains dynamic and volatile due to geopolitical uncertainties and logistics-related challenges, affecting future guidance clarity.
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The tooling business saw a decline in contribution to overall sales due to the deferment of customer SOPs, impacting revenue from this segment.
Q & A Highlights
Q: Considering the ongoing West Asia conflict and resultant supply chain disruptions, how is PPAP managing these challenges, and what will be the potential impact on margins? A: Sachin Jain, CFO : We are prioritizing uninterrupted supply to customers despite increased raw material prices. About 50% of the price increase has been covered with customers, and we are in discussions to address the remaining impact once the situation stabilizes.
Q: How does the company plan to utilize the proceeds from the proposed sale of the JV stake? Are there any immediate plans to reduce debt? A: Sachin Jain, CFO : The net debt level is reduced to INR103 crores. We plan to use the proceeds for long-term strategic requirements and maintain the current debt level for this financial year, with CapEx funded through internal accruals.
Q: Can you elaborate on the decline in the contribution of the tooling business to overall sales? A: Sachin Jain, CFO : The decline is due to the timing of customer SOPs. Last year, there were high tooling sales due to specific models. We expect significant tooling sales in FY27 with several models in the pipeline.
Q: What are the long-term aspirations for the tooling business under Meraki Precision Tools, and what key milestones are targeted through this restructuring? A: Abhishek Jain, CEO : The restructuring aims to provide better clarity and management focus. We plan to double the capacity to produce around 300 molds per year over the next three years.
Q: Regarding the battery business, when do you expect it to achieve breakeven, and how will capacity utilization evolve in FY27? A: Abhishek Jain, CEO : We expect a full recovery in FY27, with 100% utilization of plant and machinery. We have secured meaningful customer orders, and sales should increase in Q1.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
