This article first appeared on GuruFocus .
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Consolidated Revenue for Q3:INR138 crore, broadly in line with the corresponding quarter of the previous year.
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Consolidated Revenue for Nine Months:INR392.47 crore, reflecting a marginal decline of approximately 3.5% compared to INR406.78 crore in the previous year.
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Profit After Tax for Q3:INR6.61 lakhs, indicating gradual operational stabilization.
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Consolidated PAT for Nine Months:Loss of INR225 lakhs, impacted by softer volumes and continued investments.
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Aftermarket Business Growth:Over 30% year-on-year growth driven by distribution network expansion and product portfolio increase.
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Projected FY '26 Revenue:Approximately INR575 crore.
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Projected FY '26 EBITDA:Estimated at INR58 crore.
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Projected FY '26 PAT:Expected to close at INR8 crore, excluding extraordinary gains from JV share sale.
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Release Date: February 16, 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 ) successfully exited a joint venture with Tokai Kogyo Company Limited, receiving INR100 crore, which will be used to reduce net debt and fund strategic capital expenditures.
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The company is witnessing a gradual ramp-up in volumes, translating into improved sales momentum in the ongoing quarter.
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The aftermarket business, operated under Elpis Automotive, delivered over 30% year-on-year growth, driven by an expanded distribution network and product portfolio.
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The lithium-ion battery pack business under Avinya Batteries Limited achieved the highest monthly sales in its history, indicating a turnaround phase.
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PPAP Automotive Ltd ( BOM:532934 ) is expanding its Chennai plant, which will be ready by April, offering better technological and competitive local solutions to customers.
Negative Points
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The joint venture with Tokai Kogyo Company Limited historically exerted a drag on PPAP's consolidated financial performance, with returns materially below expectations.
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The company's consolidated revenue for the nine months ended December 2025 showed a marginal decline of approximately 3.5% compared to the previous year.
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The automotive segment experienced softer-than-anticipated performance due to demand variability and deferment of planned volumes for new models.
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The company reported a consolidated profit after tax of only INR6.61 lakhs for quarter three, indicating gradual operational stabilization but still reflecting challenges.
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The Indian automobile industry's uneven growth across OEMs and models impacted PPAP Automotive Ltd ( BOM:532934 )'s top line, with certain high-volume models seeing moderation.
Q & A Highlights
Q: Can you explain the rationale behind the sale of the stake in the joint venture with Tokai Kogyo, and will PPAP continue to source technical services from Tokai? A: The decision to exit the JV was due to a misalignment in long-term strategy and poor returns on the invested capital of INR48.5 crore. PPAP has always been independent in technical sourcing, designing, and manufacturing, and will continue to operate independently without relying on Tokai's services. - Abhishek Jain, CEO
Q: What is the estimated CapEx requirement for the EPDM rubber business at the Chennai facility, and is it included in the current CapEx guidance? A: The first phase of CapEx for the EPDM rubber business is approximately INR30 crore, including the building. This has been factored into the existing CapEx plan for the year, with the facility expected to be operational by April. - Abhishek Jain, CEO
Q: How will the INR100 crore proceeds from the JV stake sale be utilized? A: The proceeds will be used to repay long-term loans as per the repayment schedule, reduce working capital, and fund future capital expenditures. This is expected to reduce interest costs by about 30%. - Abhishek Jain, CEO
Q: What is PPAP's competitive advantage in the lithium-ion battery division, given the high competition from Chinese imports? A: PPAP's competitive advantage lies in its long-standing reputation for quality and reliability in the automotive industry. The company is focusing on energy storage solutions and has secured orders from reputable clients, which is expected to drive growth in this division. - Abhishek Jain, CEO
Q: What led to the subdued performance in Q3 despite a revival in the automotive sector? A: The subdued performance was due to demand softness for specific models from key OEMs like Maruti, Tata, and Honda. However, the company is seeing a ramp-up in volumes in Q4, which is expected to improve performance. - Abhishek Jain, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
