Permanent Magnets Limited reported a 19% year-on-year rise in standalone revenue from operations to ₹63.23 crore for the quarter ended June 30, 2026 (Q1FY27), driven by strong contributions from its Alloys division following new capacity commissioning. Despite the top-line growth, net profit declined by 14% to ₹6.25 crore from ₹7.28 crore in Q1FY26, as rising input costs and increased finance charges compressed margins. The divergence between revenue expansion and profit contraction underscores the impact of higher operational expenses that could not be fully passed 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 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 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 ₹11.93 crore from ₹11.15 crore; however, EBITDA margin contracted to 19% 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.

Strategic Updates

Sharad Taparia, Managing Director, attributed the revenue growth to a favourable product mix and the commercial contribution from the Alloys division, which began operations after commissioning new capacity in Q4FY26. The company continues to engage with customers across Oil & Gas, Aerospace, and other sectors. Taparia noted that the Relays project is progressing towards commercial business in the second half of the financial year. Additionally, Phase 2 CAPEX for Quantum Magnetics, covering block cutting, machining, and surface treatment, remains on track for commissioning in Q3FY27.

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 19% 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.

Permanent Magnets Limited shareholders approved a final dividend of ₹2.20 per equity share for FY26 and authorized increased borrowing limits during its 65th Annual General Meeting (AGM) held on August 5, 2026. The meeting, conducted via video conferencing, saw a voting participation rate of 61.86%, with all eight resolutions passing with near-unanimous support of 99.99%. These approvals provide the company with enhanced financial flexibility to scale operations in FY27.

The AGM was chaired by Nirmal Kumar Jain, Chairman, with Sharad Taparia, Managing Director, overseeing proceedings. Shareholders also re-appointed Sunaina Taparia (DIN: 07139610) as a director following her retirement by rotation. Arun Dash & Associates, Practicing Company Secretaries, served as scrutinizers for the e-voting process managed by Central Depository Services (India) Limited (CDSL). The cut-off date for voting eligibility was July 28, 2026, with 17,891 shareholders entitled to vote.

Consolidated Voting Results

A total of 53,19,367 votes were polled out of 85,98,453 shares held by eligible shareholders. Promoter and promoter group entities voted in favor of all resolutions, while public non-institutional shareholders showed 99.9985% support. Only five votes were cast against any resolution across the agenda items.

Governance and Compliance

The meeting adhered to Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Remote e-voting was open from August 1, 2026, to August 4, 2026. The unblocking of votes was witnessed by independent witnesses Devika Kharde and Akshat Somani. Company Secretary Rachana Sawant confirmed that the results would be submitted to stock exchanges within the stipulated timeline.