PPAP Automotive Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript PPAP Automotive Ltd filed with BSE on 19 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
PPAP Automotive reported consolidated Q4 FY26 revenue growth of 18.6% year-on-year to about INR174.6 crores, with EBITDA up 12.9% year-on-year to INR16.9 crores and capacity utilization improving to approximately 78%. Management announced a rebranding to the Ajay Group along with three strategic reforms: divestment of the PPAP Tokai India Rubber joint venture stake for INR100 crores, the hive-off of the tooling business into Meraki Precision Tool Engineering Limited, and a proposed merger of Avinya Batteries Limited with the parent. The company said it would defer its FY27 guidance to the Q1 FY27 earnings announcement, citing slower-than-expected demand recovery from automotive OE customers and deferred tooling and battery orders in Q4 FY26.
Numbers mentioned
Consolidated Revenue: INR174.6 crores (Q4 FY26)
p. 4
“Consolidated revenue for quarter 4 grew by 18.6% year-on-year basis and 25.7% on a quarter-on-quarter basis to INR175.5 crores (wrongly said kindly read it as INR174.6 crores).”
Abhishek Jain, page 4 of the filed PDF · View the filing
EBITDA: INR16.9 crores (Q4 FY26)
p. 4
“EBITDA for the quarter increased by 12.9% year-on-year to INR16.9 crores, supported by improved business momentum, better operational performance and enhanced execution during the quarter.”
Abhishek Jain, page 4 of the filed PDF · View the filing
Capacity utilization: approximately 78% (Q4 FY26)
p. 4
“Capacity utilization levels also improved meaningfully to approximately 78%, reflecting stronger throughput across facilities and gradual stabilization in customer schedules.”
Abhishek Jain, page 4 of the filed PDF · View the filing
Consolidated Revenue: INR567 crores (FY26)
p. 4
“For financial year '26, the company reported a consolidated revenue of INR567 crores.”
Abhishek Jain, page 4 of the filed PDF · View the filing
One-time employee benefit obligation: approximately INR3.6 crores (FY26)
p. 5
“At the PAT level, profitability was further impacted by mark-to-market losses on investments and an additional one-time employee benefit obligation of approximately INR3.6 crores arising from the Labor Code implementation challenges, which were not factored into the earlier guidance.”
Abhishek Jain, page 5 of the filed PDF · View the filing
New business secured: approximately INR840 crores (FY26)
p. 5
“During financial year '26, the company secured new businesses of approximately INR840 crores across EV and ICE platforms.”
Abhishek Jain, page 5 of the filed PDF · View the filing
Aftermarket business growth: 36% (FY26)
p. 6
“The aftermarket business continued to deliver robust growth momentum during the financial year '26, recording an impressive growth of 36% over the previous year.”
Abhishek Jain, page 6 of the filed PDF · View the filing
Distributor network: 147 distributors (FY26)
p. 6
“The robust performance was driven by the company's expanding distribution network, which is now comprising of 147 distributors, which are supported by a diversified product portfolio of 1,264 SKUs, which are spread across three key segments: spare parts, service parts and accessories, including perfumes and car care products.”
Abhishek Jain, page 6 of the filed PDF · View the filing
Tooling business growth: 12.1% (FY26)
p. 6
“In financial year '26, the business grew by 12.1%.”
Abhishek Jain, page 6 of the filed PDF · View the filing
Molds developed: 148 molds (FY26)
p. 6
“The division has successfully developed 148 molds during the entire year.”
Abhishek Jain, page 6 of the filed PDF · View the filing
Industrial Products division growth: 38% (FY26)
p. 6
“The business again witnessed encouraging traction across non-automotive applications as well as export markets, resulting in a growth of 38% during this year.”
Abhishek Jain, page 6 of the filed PDF · View the filing
Battery business revenue growth: 1.28x (FY26 vs prior year)
p. 6
“Revenue from the business increased by 1.28x in financial year '26 compared to the previous year, reflecting improving traction and strengthening business momentum.”
Abhishek Jain, page 6 of the filed PDF · View the filing
Final dividend: INR1.5 per equity share (FY26)
p. 7
“the Board has recommended a final dividend of INR1.5 per equity share for financial year '26, taking the total dividend for the year to INR2.5 per equity share subject to the shareholders' approval.”
Abhishek Jain, page 7 of the filed PDF · View the filing
Net debt: INR103 crores
p. 7
“On the net level, our debt is reduced to INR103 crores.”
Abhishek Jain, page 7 of the filed PDF · View the filing
Gross debt: INR195 crores
p. 7
“For the gross level, it is around INR195 crores because we want to deploy it for our long-term strategic requirement.”
Abhishek Jain, page 7 of the filed PDF · View the filing
Battery business loss: INR40 lakhs (Q4 FY26)
p. 10
“In Q4, there is almost -- only loss of around INR40 crores -- INR40 lakhs, sorry, in the battery.”
Abhishek Jain, page 10 of the filed PDF · View the filing
Battery business loss: INR1.2 crores (Q4 FY25)
p. 10
“Last year, it was around INR1.2 crores. So, we have reduced the losses almost 60% to 70%.”
Abhishek Jain, page 10 of the filed PDF · View the filing
Standalone EBITDA margin: 13% (Q4 FY26)
p. 10
“quarter 4 also, you can see that on a stand-alone basis, if you remove the impact of the wage code, then we have improved the margins to 13% EBITDA compared to 11% in the previous -- on a year-on-year basis.”
Abhishek Jain, page 10 of the filed PDF · View the filing
Content per vehicle: INR2,500 to INR3,500 per vehicle on average
p. 11
“On an average, it ranges somewhere between INR2,500 to INR3,500 per vehicle.”
Abhishek Jain, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
FY27 financial guidance — Q1 FY27 earnings announcement
stated firmly by Abhishek Jain
p. 5
“the company has decided that it will provide its financial year '27 guidance during the quarter 1 financial year '27 earnings announcement once we have a better clarity on how the market conditions are faring out.”
Abhishek Jain, page 5 of the filed PDF · View the filing
Meraki Precision Tool Engineering hive-off completion — Q2 FY27
stated conditionally by Abhishek Jain
p. 4
“The transition is targeted to be completed by quarter 2 of financial year '27, subject to the receipt of the necessary regulatory and statutory approvals.”
Abhishek Jain, page 4 of the filed PDF · View the filing
Avinya Batteries merger with parent — Q4 FY27
stated conditionally by Abhishek Jain
p. 4
“The merger process is targeted to be completed by quarter 4 of financial year '27, subject again to the necessary regulatory and statutory approvals.”
Abhishek Jain, page 4 of the filed PDF · View the filing
Tooling business mold capacity — roughly around 300-odd molds per year · next 3 years
stated as an aspiration by Abhishek Jain
p. 8
“So maybe in 3 years, we are planning roughly around 300-odd molds per year, more or less 1 mold in every 1.5 days.”
Abhishek Jain, page 8 of the filed PDF · View the filing
Battery business capacity utilization — 100% utilized · FY27
stated conditionally by Abhishek Jain
p. 8
“we expect that the whole plant and machinery will be 100% utilized in this year, financial year '27.”
Abhishek Jain, page 8 of the filed PDF · View the filing
Battery business profitability — profitable at PBT level · FY27
stated conditionally by Abhishek Jain
p. 10
“So this year, on a stand-alone basis, this battery segment should be profitable at the PBT level. It should be profitable.”
Abhishek Jain, page 10 of the filed PDF · View the filing
Capacity utilization — 80%, 82% · FY27
stated as an aspiration by Abhishek Jain
p. 10
“Maybe quarter 1 is a little less, but over a period of time in next year, I think utilization will improve to 80%, 82%.”
Abhishek Jain, page 10 of the filed PDF · View the filing
Margins — FY27
stated as an aspiration by Abhishek Jain
p. 10
“So, all those put together, I think our margins for financial year '26, '27 should get better than what we've been doing in the past.”
Abhishek Jain, page 10 of the filed PDF · View the filing
Aftermarket business growth — FY27
stated as an aspiration by Abhishek Jain
p. 10
“So, we are anticipating that even this year, it will continue to grow.”
Abhishek Jain, page 10 of the filed PDF · View the filing
Company overall performance sustaining momentum — FY27
stated conditionally by Abhishek Jain
p. 7
“Subject to stability in the external operating environment, we believe that sustaining the current momentum will enable the company to maintain and further strengthen the performance levels achieved during the quarter across this upcoming year.”
Abhishek Jain, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it is absorbing supplier price increases to avoid customer line disruption, with about 50% already passed on to customers, and the remainder to be discussed once the situation stabilizes.
Answered by Abhishek Jain
Asked by Rohit Kumar: How is PPAP managing raw material price increases from West Asia conflict-related supply chain disruption, and what is the potential margin impact?
p. 7
“And out of that, almost 50% is already covered with the customer. We have the pass-on policy with the customer.”
Abhishek Jain, page 7 of the filed PDF · View the filing
Management said net debt has already reduced to INR103 crores, gross debt is around INR195 crores which will be deployed for long-term strategic needs, with capex funded from internal accruals.
Answered by Abhishek Jain
Asked by Rohit Kumar: How will the company use proceeds from the JV stake sale, and are there plans to reduce debt?
p. 8
“Rest capex would be done from the internal accruals only and we will keep the debt level around this level only for this financial year.”
Abhishek Jain, page 8 of the filed PDF · View the filing
Management explained the decline was due to fewer customer SOPs this year compared to a large Maruti model last year, not a reduction in the underlying business, with tooling sales expected to be significant again in FY27.
Answered by Sachin Jain
Asked by Manav Jain: Why did the tooling business's contribution to overall sales decline?
p. 8
“So this year, again, we will have the significant tooling sale.”
Sachin Jain, page 8 of the filed PDF · View the filing
Management said the restructuring aims to give the tooling business clearer management focus, and it plans to roughly double mold production capacity over three years.
Answered by Abhishek Jain
Asked by Manav Jain: What are management's long-term aspirations for the tooling business under Meraki Precision Tools?
p. 8
“So maybe in 3 years, we are planning roughly around 300-odd molds per year, more or less 1 mold in every 1.5 days.”
Abhishek Jain, page 8 of the filed PDF · View the filing
Management expects a full recovery of the battery business in FY27, with plant and machinery expected to reach 100% utilization.
Answered by Abhishek Jain
Asked by Manav Jain: When will the battery business reach breakeven and how will capacity utilization evolve in FY27?
p. 8
“So this year, based on what orders we executed in quarter 4, in financial year '27, we expect a full recovery of this business.”
Abhishek Jain, page 8 of the filed PDF · View the filing
Management attributed the slowdown to delayed SOPs on certain specific models and customers rather than the automotive industry broadly.
Answered by Abhishek Jain
Asked by Majid Ahamed: What caused the slowdown affecting growth and margins compared to peers in the auto ancillary segment?
p. 9
“It's not related to the automotive industry per se. But as we explained in the opening commentary also, it's particularly related to certain models and certain customers only.”
Abhishek Jain, page 9 of the filed PDF · View the filing
Management said those delayed models have now started production, driving the Q4 improvement, and expects further margin improvement in FY27 supported by higher utilization and cost efficiencies.
Answered by Abhishek Jain
Asked by Majid Ahamed: What is the update on the delayed models and their effect on margins going into FY27?
p. 9
“Those models have started production now. That is why you see the increase in quarter 4 numbers, which will continue for this '26, '27 financial year also.”
Abhishek Jain, page 9 of the filed PDF · View the filing
Management said the Q4 loss was around INR40 lakhs, down from INR1.2 crores a year earlier, reflecting a large reduction in losses.
Answered by Abhishek Jain
Asked by Majid Ahamed: What was the battery business loss in Q4 and is it near breakeven?
p. 10
“In Q4, there is almost -- only loss of around INR40 crores -- INR40 lakhs, sorry, in the battery. Last year, it was around INR1.2 crores. So, we have reduced the losses almost 60% to 70%.”
Abhishek Jain, page 10 of the filed PDF · View the filing
Management said the industry is shifting toward SUVs where demand remains strong, while sedans face pressure, and about 90% of new models starting next year are in the SUV space, limiting PPAP's exposure to the affected segment.
Answered by Abhishek Jain
Asked by Rishabh Jain: What is PPAP's exposure to the entry-level and small passenger vehicle segment amid demand pressure concerns?
p. 11
“But in the next year, whatever models we are starting are -- I think 90% of those are in the SUV space. And therefore, we don't see much impact of the market changes coming into our sales.”
Abhishek Jain, page 11 of the filed PDF · View the filing
Risks flagged
Softer-than-anticipated demand and ordering patterns late in Q4 causing a variance against revised guidance
p. 5
“However, during the later part of Q4, demand conditions and due to some ordering patterns remained softer than anticipating, resulting in a variance even against the revised guidance.”
Abhishek Jain, page 5 of the filed PDF · View the filing
Slower-than-expected demand recovery from automotive OE customers
p. 5
“The deviation in guidance was primarily driven by a slower-than-expected demand recovery from the automotive OE customers.”
Abhishek Jain, page 5 of the filed PDF · View the filing
Deferral of tooling and battery orders to Q1, and moderation in consumer durables demand
p. 5
“Some battery-related orders also got deferred to quarter 1, and moderation in the consumer durables demand cycle.”
Abhishek Jain, page 5 of the filed PDF · View the filing
Mark-to-market losses on investments and one-time employee benefit obligation from Labor Code implementation
p. 5
“At the PAT level, profitability was further impacted by mark-to-market losses on investments and an additional one-time employee benefit obligation of approximately INR3.6 crores arising from the Labor Code implementation challenges, which were not factored into the earlier guidance.”
Abhishek Jain, page 5 of the filed PDF · View the filing
Geopolitical uncertainty and logistics disruption from the West Asia conflict
p. 5
“the external operating environment continues to remain dynamic and volatile due to the ongoing geopolitical uncertainties, the disruptions and the logistics-related challenges arising from the West Asia conflict.”
Abhishek Jain, page 5 of the filed PDF · View the filing
Elevated raw material prices due to supply chain disruption
p. 7
“So regarding this supply chain disruption, so there is a significant increase in the raw material prices.”
Abhishek Jain, page 7 of the filed PDF · View the filing
Demand pressure in sedan and entry-level passenger vehicle segments
p. 11
“It's only sedans, whether it's the entry-level sedan or even the premium C-segment or D-segment sedans, that is where the problem has started in the industry.”
Abhishek Jain, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.