Permanent Magnets Limited (PML) has announced a significant strategic move in the magnetic materials industry. The company's wholly owned subsidiary, Quantum Magnetics Private Limited (QMPL), has entered into a joint venture agreement with Singapore-based Lorentic Pte. Ltd., aiming to strengthen its position in the neodymium magnets market.

Joint Venture Structure

The joint venture will see an equal partnership between QMPL and Lorentic, with each holding a 49.02% stake in the new entity. The remaining 1.96% of shares will be reserved for an Employee Stock Ownership Plan (ESOP). This structure ensures that both partners have equal participation in board representation and decision-making power, fostering a balanced approach to management and operations.

Scope of Operations

The joint venture will focus on several key areas:

1. Manufacturing of neodymium magnets and related magnetic assemblies
2. Marketing and distribution of these products
3. Research and development of advanced magnetic products

A significant part of the venture's scope includes setting up new plants for neodymium magnets and assemblies, indicating a commitment to expanding production capabilities.

Strategic Rationale

PML's Managing Director, Sharad Taparia, highlighted the strategic benefits of this joint venture in a disclosure to the BSE:

"The JV will enable QMPL to expand its product portfolio, strengthen R&D capabilities, enhance market reach (including international markets), and improve competitiveness, creating long-term strategic value for all stakeholders."

This move is expected to bolster QMPL's position in both domestic and international markets, leveraging Lorentic's expertise and network.

Financial Implications

While the financial details of the joint venture are yet to be fully disclosed, it's worth noting QMPL's recent financial performance:

The significant jump in turnover from FY 2023-24 to FY 2024-25 suggests that QMPL has been on a growth trajectory, making this joint venture a timely strategic move to capitalize on its momentum.

Regulatory Compliance

The joint venture agreement was approved by the Board of Directors of Permanent Magnets Limited on August 28, 2025. The company has duly informed the BSE Limited of this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Looking Ahead

As the magnetic materials industry continues to evolve, driven by advancements in technology and increasing demand for high-performance magnets, this joint venture positions QMPL and PML to capitalize on emerging opportunities. The collaboration with Lorentic is expected to bring in new perspectives, technologies, and market access, potentially accelerating growth and innovation in the neodymium magnets sector.

Investors and industry observers will be keenly watching how this partnership unfolds and its impact on Permanent Magnets Limited's market position in the coming years.

Permanent Magnets Limited , a specialist in electrical components and assemblies for automobiles and electricity meters, has announced its financial results for the first quarter, showcasing significant improvements in profitability despite a marginal decline in revenue.

Financial Highlights

The company reported revenue from operations of ₹53.55 crores for Q1, representing a slight 1% year-over-year decline. However, Permanent Magnets Limited demonstrated remarkable profitability improvements:

Improved Profitability

The company's EBITDA grew by 27% to ₹10.69 crores, with the EBITDA margin expanding to 20% from 16% in the previous year. This significant improvement in profitability was attributed to favorable changes in the product mix across both EV and Smart Meter segments.

Profit after tax increased by 22% to ₹6.17 crores, while earnings per share rose to ₹7.17, also marking a 22% increase year-over-year.

Management Commentary

Sharad Taparia, Managing Director of Permanent Magnets Limited, commented on the results: "We saw an improvement in profitability margins in Q1, largely driven by a favorable shift in product mix across both EV and Smart Meter product segments. While topline performance remained largely flat YOY, with a marginal 1% decrease, we did see sequential improvement compared to the previous quarter."

Ongoing Projects and Future Outlook

The company provided updates on its ongoing projects:

1. Relay Manufacturing Facility: The facility is progressing as planned, with customer testing and trials underway. Initial orders are expected to coincide with the facility becoming operational in the fourth quarter.

2. Alloys Business: This segment has moved to commercial operations. Additional capacity from a new furnace is expected to be commissioned in December, which will enhance the company's ability to take on larger orders.

Taparia added, "Profitability margins may continue to evolve depending on future product mix changes. However, we remain focused on optimizing this through strategic product development. Overall, we are on a path to good growth for the future."

Permanent Magnets Limited continues to leverage its 65+ years of experience in magnets, magnetic assemblies, and shunts domains. The company maintains strong expertise in five core product categories: magnetic sensing, current sensing, magnetic assemblies, alloys, and ZAMAK die-casting.

As a preferred supplier to many tier-1 automobile companies globally and top electricity meter companies worldwide, Permanent Magnets Limited is well-positioned to capitalize on opportunities in both traditional ICE vehicles and emerging technologies like electric vehicles.