Permanent Magnets Limited declared a final dividend of ₹2.20 per equity share for the financial year ended March 31, 2026, during its 65th Annual General Meeting (AGM) held on August 5, 2026. The meeting, conducted via video conferencing from 2:30 p.m. to 2:47 p.m., also saw shareholders approve critical strategic resolutions, including an increase in borrowing limits and the creation of charges on company assets, signaling management’s intent to scale operations in FY27.

The AGM was chaired by Nirmal Kumar Jain, Chairman, with Sharad Taparia, Managing Director, overseeing proceedings. The Board adopted the audited financial statements for FY26 and re-appointed Sunaina Taparia (DIN: 07139610) as a director following her retirement by rotation. Arun Dash & Associates, Practicing Company Secretaries, were appointed as scrutinizers to ensure transparency in the e-voting process managed by Central Depository Services (India) Limited (CDSL).

Key Resolutions Passed

Shareholders approved eight agenda items, comprising ordinary and special resolutions. The approval of special resolutions regarding borrowing and asset encumbrance provides the company with greater financial flexibility for future capital expenditures.

Governance and Compliance

The meeting adhered to Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI Listing Regulations, with e-voting facilities available both remotely and during the meeting. Three members registered as speakers, and their queries were addressed by the Managing Director. The requisite quorum was present as per Section 103 of the Companies Act, 2013.

Company Secretary Rachana Sawant confirmed that the results of the remote and live e-voting would be submitted to the stock exchanges and published on the company’s website within the stipulated timeline. The filing was submitted pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

Permanent Magnets Limited reported a standalone net profit of ₹6.25 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 14% year-on-year decline from ₹7.28 crore in the corresponding period of FY26. Although revenue from operations expanded by 19% to ₹63.23 crore against ₹53.16 crore previously, profitability was constrained by rising operational costs and increased finance charges. The divergence between top-line growth and bottom-line contraction highlights margin compression driven by higher input expenses that the company could not fully pass on to customers.

The Board of Directors approved the unaudited financial results on August 04, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The figures were prepared in accordance with Ind AS and reviewed by the statutory auditors, Jayesh Sanghrajka and Co LLP, who issued an unmodified limited review report. In compliance with Regulation 47, the company published the results on its website and submitted the advertisement details to the Bombay Stock Exchange.

Financial Performance

Revenue growth was broad-based, with standalone gross sales reaching ₹63.23 crore compared to ₹53.16 crore in Q1FY26. Consolidated revenue stood at ₹63.23 crore, up from ₹53.55 crore in the year-ago period. EBITDA rose to ₹117M from ₹112M; however, EBITDA margin contracted to 18.54% from 21%, reflecting the impact of higher input and operating costs. Cost of materials consumed rose significantly to ₹35.49 crore (standalone) from ₹27.29 crore, eroding gross margins, while employee benefits expenses also increased to ₹4.11 crore from ₹3.31 crore.

The table below summarises key financial metrics for the quarter:

EBITDA performance details are captured below:

Finance costs emerged as a key pressure point, particularly in the consolidated accounts. Standalone finance costs were ₹1.12 crore, up from ₹0.57 crore in Q1FY26. In the consolidated statement, finance costs nearly quadrupled to ₹2.37 crore from ₹0.62 crore, directly impacting the bottom line. Other expenses also rose to ₹14.01 crore (standalone) from ₹11.87 crore, while depreciation and amortization increased to ₹3.11 crore from ₹2.16 crore.

Legal Proceedings Update

The company disclosed that the Honourable Bombay High Court has granted an interim stay order against the winding-up order passed against the company on April 15, 2015. Permanent Magnets Limited has deposited ₹0.19 crore with interest as per the directions of the High Court. The statutory auditors drew specific attention to this legal proceeding in their review report, noting that the report remains unmodified regarding this matter.

What the Numbers Show

The divergence between revenue growth and profit contraction highlights margin compression in Q1FY27. While top-line growth of 19% indicates healthy demand for engineering and current sensing applications, the contraction in EBITDA margin to 18.54% from 21% resulted in lower net margins. Standalone net margin declined to approximately 9.90% from 13.70% in the previous year. The sharp rise in consolidated finance costs suggests increased debt servicing obligations at the group level, which disproportionately affected consolidated profitability compared to standalone figures.