Pricol Ltd (BOM:540293) Q3 2026 Earnings Call Highlights: Surpassing Revenue Milestones and ...

This article first appeared on GuruFocus .

Release Date: January 30, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Pricol Ltd ( BOM:540293 ) achieved a significant milestone by surpassing the 1,000 crore revenue mark in Q3.

• The company reported a strong growth in EPS, increasing from 3.4 to 5.22 compared to the same quarter last year.

• Pricol Ltd ( BOM:540293 ) successfully de-risked its supply chain by developing alternatives for components previously sourced from Nexperia, China.

• The company is fully backed by customer compensation for commodity price increases, ensuring minimal impact on margins.

• Pricol Ltd ( BOM:540293 ) is expanding its product portfolio with new technologies and partnerships, such as the MOU with BOE for backward integration of LCD and TFT displays.

Negative Points

• The company faces a lag of 3 to 6 months in recovering increased commodity costs from customers.

• Capacity constraints are currently hampering growth in the P3L division, necessitating new investments.

• Employee costs have increased significantly, partly due to strategic hiring for new product development.

• The company is experiencing high capacity utilization, over 90%, which may limit immediate growth potential without further investment.

• Export growth, while steady, is not expected to significantly accelerate in the near term due to external market conditions.

Q & A Highlights

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Q: Could you update us on the current status of the Nexperia crisis and its impact on operations? A: (CEO) We have successfully developed alternatives for the passive components sourced from Nexperia, China, and have de-risked all components. We do not foresee any risk going forward as customer approvals are in place.

Q: Are rising commodity prices affecting your margins? A: (CFO) We are 100% indexed with customers for commodity prices, including silver. There is a lag of 3 to 6 months, but it is recoverable from customers.

Q: What is the status of new products like the disc brake and handlebar? A: (Director of Strategy) We started with pilot runs for disc brakes last year and will begin production with a large two-wheeler OEM in Q1 or Q2 of the next financial year. We expect growth due to potential mandatory ABS requirements.

Q: Can you provide guidance on CapEx and future strategic direction? A: (CFO) We plan a CapEx of around 500 crores over the next 2 to 3 years. We aim to evolve as a technology company, focusing on driver information systems and actuation and control management systems.