This article first appeared on GuruFocus .
Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Permanent Magnets Ltd ( BOM:504132 ) has resumed business with a major US customer after a temporary deferral due to tariff policy changes.
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The alloy segment experienced higher volumes in Q2 compared to Q1, indicating growth potential.
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The company is on track with its project execution, with the new furnace for the alloy facility expected to be installed by December.
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The joint venture with Laurentic Limited for quantum magnetics is progressing, with equipment orders placed and some already en route.
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Permanent Magnets Ltd ( BOM:504132 ) is focusing on expanding its market participation and capacity, which is expected to support future growth.
Negative Points
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Revenue from operations for Q2 declined by 12% year-on-year, primarily due to lower exports to the US and weaker domestic demand in the energy meter segment.
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EBITDA margins were negatively impacted in Q2 due to reduced exports to the US.
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The domestic energy meter business recorded lower demand, attributed to customer-specific factors outside the company's control.
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Commercial orders for the relay facility are delayed, with approvals taking longer than anticipated.
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The company faces challenges in sourcing raw materials locally for its joint venture, with potential reliance on imports if local capacity falls short.
Q & A Highlights
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Warning! GuruFocus has detected 3 Warning Sign with BOM:504132.
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Q: What is the status of the joint venture for manufacturing rare earth permanent magnets, and what are the plans for sourcing raw materials? A: The joint venture aims to manufacture rare earth permanent magnets using an entirely Indian supply chain. Discussions with the Indian government and Indian Rare Earths Limited are underway to source materials locally. If local capacity falls short, imports from other countries will be considered. (Respondent: Managing Director)
Q: How do you see the growth prospects for the company in FY27, particularly with the completion of CapEx projects? A: We are optimistic about growth in FY27, especially in the alloy business, which is currently running at full capacity. The relay business is still in the testing phase, with larger volume sales expected from the middle of the next financial year. (Respondent: Managing Director)
Q: What are the expected revenue and margin projections for FY27? A: We anticipate revenue growth of 20-30% in FY27, depending on demand from the alloy, relay, and EV businesses. Margins are expected to be between 15-18%, similar to last year's levels. (Respondent: Managing Director)
Q: Can you provide an update on the progress of the relay business and its potential revenue contribution? A: The relay business is in the testing phase with customers. We expect commercial sales to begin by mid-next financial year, with potential revenue between 20 to 50 crores, depending on customer uptake and testing outcomes. (Respondent: Managing Director)
Q: How is the company addressing the impact of US tariffs on exports, and what are the plans to mitigate this issue? A: The product is exempt from US tariffs, but the customer is facing challenges in clearing it under the specific heading. We are exploring manufacturing in Europe to reduce tariffs, and discussions are ongoing with the customer. (Respondent: Managing Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
