PPAP Automotive Limited has entered into a technology partnership agreement with Hutchinson to manufacture advanced body sealing systems in India for the passenger vehicle segment. The collaboration grants PPAP the rights to manufacture, market, and sell products developed using Hutchinson's advanced technologies, licensed know-how, and ongoing technical support. This strategic move aims to address the evolving requirements of global and domestic OEMs operating in India, with production undertaken through PPAP's existing manufacturing facilities across the country.

The agreement marks a significant step in PPAP's journey towards enhancing technology-driven growth and increasing value-added content per vehicle. By combining Hutchinson's global expertise with PPAP's strong manufacturing presence and customer relationships, the partnership seeks to deliver future-ready, innovative, high-quality body-sealing solutions. This initiative is expected to reinforce PPAP's position in the Indian automotive industry and create sustainable long-term growth opportunities across both conventional and next-generation mobility platforms.

Under the terms of the agreement, PPAP shall pay consideration towards the transfer of technical know-how, licensed technology, and related technical support services. Additionally, PPAP shall pay royalty for the use of licensed intellectual property, know-how, designs, and related rights in accordance with the terms and conditions of the agreement. Hutchinson will provide technical know-how, engineering support, design assistance, and process support services to facilitate product development and commercialization in India.

Abhishek Jain, Managing Director & CEO of PPAP Automotive Limited, stated that the collaboration marks a significant step forward in strengthening the company's technology ecosystem. He emphasized that the partnership aims to meet the evolving requirements of automotive OEMs by delivering high-quality solutions. Frédéric Le Du, Senior Vice President Asia of Hutchinson, noted that the collaboration reflects the ambition to bring technologies to one of the world's most dynamic automotive markets, supporting passenger vehicle manufacturers with reliable and competitive solutions.

PPAP Automotive Limited is a leading manufacturer of Automotive Sealing Systems, Interior and Exterior Automotive Parts in India, with core expertise in plastic and rubber extrusion systems, plastic injection moulding, and precision tooling solutions. Established in 1978, the company supplies to leading automotive OEMs including Maruti Suzuki India Limited, Honda Cars India Ltd., Toyota Kirloskar Motor Pvt. Ltd., Tata Motors Limited, Mahindra & Mahindra Limited, Hyundai Motor India Limited, and Kia India Private Limited.

Hutchinson designs and delivers multi-material solutions for demanding industries, including Aerospace, Automotive, and Industrial markets. The group generated revenues of €5.0 billion in 2025 and employs 40,000 people across 26 countries. The partnership is subject to risks and uncertainties, and actual results may differ materially from forward-looking statements.

PPAP Automotive Limited has released the transcript of its earnings conference call for the quarter and year ended March 31, 2026. The call, held on May 12, 2026, provided detailed insights into the company's financial performance and strategic initiatives. The transcript is now available on the company's website.

Financial Performance

For the fourth quarter of fiscal year 2026, the company reported a strong sequential recovery. Consolidated revenue grew by 18.6% on a year-on-year basis and 25.7% on a quarter-on-quarter basis to INR174.6 crores. EBITDA for the quarter increased by 12.9% year-on-year to INR16.9 crores, supported by improved business momentum and better operational performance. Capacity utilization levels improved to approximately 78%.

For the full fiscal year 2026, the company reported a consolidated revenue of INR567 crores. The Board has recommended a final dividend of INR1.5 per equity share for FY26, taking the total dividend for the year to INR2.5 per equity share, subject to shareholder approval.

Strategic Initiatives

Management announced that the company and its subsidiaries will collectively operate under the unified identity of the Ajay Group. Additionally, the company completed the divestment of its stake in PPAP Tokai India Rubber Private Limited for a total consideration of INR100 crores.

Other restructuring measures include hiving off the tooling business into a wholly-owned subsidiary named Meraki Precision Tool Engineering Limited by Q2 FY27, and merging the battery business subsidiary, Avinya Batteries Limited, with the parent entity by Q4 FY27.

Business Segment Updates

The aftermarket business recorded a growth of 36% over the previous year, driven by an expanding distribution network. The tooling business grew by 12.1% in FY26, while the Industrial Products division saw a growth of 38%. The battery business is moving towards a turnaround phase, with revenue increasing by 1.28x compared to the previous year.