Permanent Magnets Limited reported a standalone net profit of ₹6.25 crore for the quarter ended June 30, 2026, marking a 14% year-on-year decline from ₹7.28 crore in Q1FY25. While revenue from operations expanded by 19% to ₹63.23 crore against ₹53.16 crore in the prior-year period, profitability was constrained by rising operational costs and increased finance charges. The company’s consolidated net profit fell more sharply to ₹3.80 crore, down from ₹6.17 crore a year ago, reflecting higher interest outflows in the group structure.

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. The Board meeting commenced at 3:15 p.m. and concluded at 3:50 p.m.

Financial Performance

Revenue growth was broad-based, with standalone gross sales reaching ₹63.23 crore compared to ₹53.16 crore in Q1FY25. Consolidated revenue stood at ₹63.23 crore, up from ₹53.55 crore in the corresponding period of the previous year. However, cost of materials consumed rose significantly to ₹35.49 crore (standalone) from ₹27.29 crore, eroding gross margins. Employee benefits expenses also increased to ₹4.11 crore from ₹3.31 crore.

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 Q1FY25. 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. The next hearing in this matter is scheduled according to the court’s listing. 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 Q1FY26. While top-line growth of 19% indicates healthy demand for engineering and current sensing applications, the inability to pass on input cost increases or control operating leverage resulted in lower net margins. Standalone net margin declined to approximately 9.9% from 13.7% in the previous year. The sharp rise in consolidated finance costs suggests increased debt servicing obligations at the group level, which warrants monitoring in subsequent quarters to assess if this is a structural change or a one-off impact.

Permanent Magnets Limited has scheduled its 65th Annual General Meeting for August 05, 2026, to be held via Video Conferencing. The Board of Directors has recommended a final dividend of ₹2.20 per equity share for the financial year ended March 31, 2026, subject to shareholder approval. The record date to determine eligibility for the dividend and electronic voting is July 28, 2026. The Register of Members and Share Transfer Books will remain closed from July 29, 2026, to August 05, 2026.

Remote e-voting will commence on August 01, 2026, at 10.00 a.m. and conclude on August 04, 2026, at 5.00 p.m. Members holding shares in physical form must update their bank account details, PAN, and contact information by July 25, 2026, to receive dividend payments electronically. The Annual Report for FY26 is available on the company's website.

Key AGM Details