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.

PPAP Automotive Limited's Board of Directors convened on May 11, 2026, and approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial results were reviewed by the Audit Committee and audited by statutory auditors T R Chadha & Co LLP, who expressed an unmodified opinion. The results were subsequently published in Business Standard (Hindi & English) on May 12, 2026. The Board also approved several significant corporate actions, including the merger of its wholly owned subsidiary Avinya Batteries Limited, the slump sale of its Tools Manufacturing Division, and the recommendation of a final dividend.

Standalone Financial Performance

On a standalone basis, PPAP Automotive reported revenue from operations of ₹53,629.54 lakhs for the year ended March 31, 2026, compared to ₹53,764.17 lakhs in the previous year. Total income for the year stood at ₹54,203.43 lakhs against ₹54,222.62 lakhs in the prior year. The company recorded a net profit of ₹3,343.48 lakhs for the year, significantly higher than ₹1,409.27 lakhs in the previous year, aided by exceptional items. The following table presents the key standalone financial metrics:

The standalone results for the year include exceptional items comprising a gain of ₹4,978.61 lakhs on the sale of the company's equity stake in its joint venture PPAP Tokai India Rubber Private Limited, partially offset by an impairment loss of ₹1,711.61 lakhs on investment in and loan to its subsidiary. Additionally, consequent to the introduction of New Labour Codes, the company provided a one-time increase in employee benefits expenses of ₹338.09 lakhs towards gratuity and compensated absences for the quarter and year ended March 31, 2026.

Consolidated Financial Performance

On a consolidated basis, PPAP Automotive reported revenue from operations of ₹56,705.22 lakhs for the year ended March 31, 2026, compared to ₹55,400.55 lakhs in the previous year. The consolidated net profit for the year stood at ₹4,319.39 lakhs against ₹699.71 lakhs in the prior year. The consolidated results include the performance of five subsidiaries and the joint venture PPAP Tokai India Rubber Private Limited up to December 31, 2025, the date of its divestment. Consequent to the introduction of New Labour Codes, the Group provided a one-time increase in employee benefits expenses of ₹364.45 lakhs towards gratuity and compensated absences for the quarter and year ended March 31, 2026. The key consolidated financial metrics are presented below:

The consolidated Group is primarily engaged in the manufacturing of automotive components, development and sale of plastic injection molds, components for consumer goods, trading of automotive accessories, and development and sale of battery packs for electric vehicles and storage applications. The Group operates in one reportable segment — automotive components — as per Ind AS 108.

Key Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects total assets of ₹74,561.37 lakhs compared to ₹59,220.47 lakhs as at March 31, 2025. Total equity stood at ₹35,625.83 lakhs, with equity share capital of ₹1,411.51 lakhs and other equity of ₹34,214.32 lakhs. On a consolidated basis, total assets stood at ₹74,134.78 lakhs as at March 31, 2026, with total equity of ₹34,111.55 lakhs, comprising equity share capital of ₹1,411.52 lakhs and other equity of ₹32,700.03 lakhs.

Merger of Avinya Batteries Limited

The Board approved the merger of Avinya Batteries Limited (ABL), a wholly owned subsidiary engaged in the manufacturing of lithium-ion battery packs, with PPAP Automotive Limited by way of a Scheme of Amalgamation under Sections 230–232 of the Companies Act, 2013. The appointed date for the amalgamation is April 1, 2026. As part of the Scheme, equity shares held by PPAP Automotive in ABL shall stand cancelled, and no new shares or consideration shall be issued. The Scheme is subject to approval from regulatory authorities and sanction by the relevant bench of the National Company Law Tribunal (NCLT). The merger is aimed at simplification of management structure, reduction of administrative and operational costs, and better co-ordination of business activities. The capital structure of both entities as at March 31, 2026 is detailed below:

The amalgamation will be accounted for using the Pooling of Interest Method as laid down in Appendix C of Ind AS 103. All assets and liabilities of ABL will be recorded at their respective carrying values in the books of PPAP Automotive as on the Appointed Date, and the identity of ABL's reserves shall be preserved. Upon the Scheme becoming effective, ABL shall stand dissolved without being wound up.

Slump Sale of Tools Manufacturing Division

The Board also approved the transfer of PPAP Automotive's Tools Manufacturing Division on a going concern basis by way of a slump sale to Meraki Precision Tool Engineering Limited, a wholly owned subsidiary of the company, through execution of a Business Transfer Agreement (BTA). The objective is to create a scalable platform for expansion of tooling capabilities and customer base, and to enable independent and focused management of the tooling business. The consideration for the slump sale shall be determined based on the net worth of the business undertaking and shall be discharged by way of issuance of equity shares by Meraki to PPAP Automotive. The transaction is expected to be completed by October 30, 2026, or such other date as mutually agreed, subject to necessary approvals.

Dividend and Other Corporate Developments

The Board recommended a final dividend of ₹1.50 per equity share of ₹10 each, subject to approval of shareholders at the ensuing Annual General Meeting. The Board also approved the re-appointment of Mr. Ajay Kumar Jain for a term of three years with effect from November 1, 2026 to October 31, 2029. Mr. Ajay Kumar Jain is a Commerce Graduate from Shriram College of Commerce, Delhi, with over four decades of industry experience, and is the father of Mr. Abhishek Jain, CEO & Managing Director, and husband of Mrs. Vinay Kumari Jain, Non-Executive Director of the company. Additionally, the company's outstanding qualified borrowings stood at ₹90.71 crores at the start of the financial year and ₹66.12 crores at the end of the financial year, with a long-term credit rating of CRISIL A-/Stable (Reaffirmed) and a short-term rating of CRISIL A2+ (Reaffirmed).

Source: None/Company/INE095I01015/8c3399a3631e4096.pdf