PPAP Automotive , a leading automotive component manufacturer, has announced a final dividend of Rs. 1.5 per equity share, subject to shareholder approval. The company's Board of Directors has recommended this dividend, which represents a 15% return on the face value of Rs. 10 per share.

Dividend Details and Payment Timeline

The proposed dividend, if approved at the upcoming 30th Annual General Meeting (AGM), will be paid to eligible shareholders within 30 days of the AGM. This payout comes with important tax implications that shareholders should be aware of.

Tax Deduction Guidelines

Since April 2020, dividends have become taxable in the hands of shareholders. PPAP Automotive has provided detailed guidelines on the tax deduction at source (TDS) for various categories of shareholders:

For Resident Shareholders:

• No tax will be deducted if the total dividend paid does not exceed Rs. 10,000.
• A 10% TDS rate applies for shareholders with a valid PAN.
• A higher rate of 20% TDS applies for shareholders without a valid PAN or if PAN is not linked with Aadhaar.

For Non-Resident Shareholders:

• The general TDS rate is 20% plus applicable surcharge and cess.
• Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) may avail beneficial tax treaty rates, subject to providing necessary documentation.
• Special rates apply for certain categories, such as Alternative Investment Funds and Sovereign Wealth Funds.

Important Dates and Document Submission

Shareholders seeking to avail lower or nil TDS rates must submit the required documents by September 19, 2025. The company has provided detailed instructions and forms for various categories of shareholders to ensure proper tax treatment.

Bank Account Update Reminder

PPAP Automotive has urged shareholders to update their bank account details with their Depository Participants (for dematerialized shares) or with the company's Registrar and Share Transfer Agent (for physical shares) to facilitate timely credit of dividends.

Electronic Payment Mandate for Physical Shareholders

In line with SEBI regulations, the company has informed that effective April 1, 2024, dividends to shareholders holding physical shares will be paid only through electronic mode. These shareholders must furnish their PAN, nomination choice, contact details, bank account information, and specimen signatures to receive dividend payments.

The company emphasizes the importance of complying with these requirements to ensure smooth processing of dividends and appropriate tax deductions. Shareholders are advised to review the detailed communication provided by PPAP Automotive and take necessary actions before the specified deadlines.

This dividend announcement, coupled with the comprehensive tax guidelines, demonstrates PPAP Automotive's commitment to shareholder value and regulatory compliance in an evolving tax landscape.

PPAP Automotive Limited , a leading automotive component manufacturer, reported a 4.9% year-over-year decline in consolidated revenue for the first quarter, amidst subdued automotive demand and project delays by OEMs. Despite the challenging start to the year, the company maintains its revenue guidance for FY26 and expects a gradual recovery from Q2 onwards.

Q1 Financial Highlights

• Consolidated revenue stood at Rs. 116.60 crores, down 4.9% year-over-year
• Parts business operated at 62% capacity utilization
• Aftermarket business showed strong growth of 27% year-over-year
• Secured new lifetime orders worth Rs. 86.00 crores, including Rs. 11.00 crores from EV programs
• Total order book maintained at Rs. 3,439.00 crores
• Commercial Toolroom business order book increased 30% year-over-year

Performance Across Business Segments

The company's performance varied across its different business segments during Q1:

Automotive Parts Business

This remains the primary growth engine for PPAP Automotive. The segment faced challenges due to subdued demand and deferment of project launches by key OEMs. However, the company continues to focus on enhancing content per vehicle, introducing higher-value-added products, and expanding its customer base.

Aftermarket Business (Elpis)

The aftermarket segment maintained healthy momentum with 1,275 SKUs, supported by both offline and online sales channels. Revenues from this business increased by 27% year-on-year in Q1.

Commercial Toolroom Business (Meraki Precision Tool Engineering)

This segment showed strong performance with a 30% year-on-year increase in the order book. The company is on track with capacity-enhancing plans to reach 150 molds per year.

Industrial Product Division (Avinya Industrial Products)

Sales in this segment remained similar to the same quarter last year. However, the company expects this division to double its business compared to the previous year.

Battery Business (Avinya Batteries)

This segment continues to advance its repositioning towards storage solutions, following a strategic shift from mobility applications last year.

Outlook and Guidance

Despite the challenging start, PPAP Automotive's management maintains its revenue guidance of Rs. 600.00 crores for the fiscal year. The company expects a gradual recovery from Q2 onwards, supported by improved execution and ramp-up of recently secured orders as well as new model launches.

Mr. Abhishek Jain, Managing Director and CEO of PPAP Automotive, commented on the results during the earnings conference call, stating, "We are optimistic that we are on track to deliver our stated guidance for Financial Year '26. We remain confident that our new business initiatives will gain strong traction this year, helping to de-risk our portfolio from sector-specific fluctuations."

The company's order book provides healthy revenue visibility, with newly secured orders expected to be executed over the next 3 to 5 years. PPAP Automotive continues to engage in new business opportunities with OEM manufacturers, leveraging its presence across both ICE and EV sectors.

As the automotive industry navigates through current challenges, including supply constraints on rare earth magnets from China, PPAP Automotive remains focused on its strategic initiatives and diversification efforts to drive growth and maintain its market position in the evolving automotive component landscape.