Permanent Magnets Limited Reports 27% EBITDA Growth in Q1 Despite Flat Revenue
Permanent Magnets Limited announced Q1 financial results with revenue slightly down by 1% to ₹53.55 crores. However, profitability improved significantly with EBITDA up 27% to ₹10.69 crores and EBITDA margin expanding to 20% from 16%. Profit after tax increased by 22% to ₹6.17 crores. The company attributes the improved profitability to favorable changes in product mix across EV and Smart Meter segments. Ongoing projects include a relay manufacturing facility and expansion of the alloys business. Management remains optimistic about future growth prospects.

*this image is generated using AI for illustrative purposes only.
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:
Particulars | Q1 | Q1 (Previous Year) | YoY Change |
---|---|---|---|
Revenue from Operations | ₹53.55 | ₹54.32 | -1% |
EBITDA | ₹10.69 | ₹8.43 | 27% |
EBITDA Margin | 20% | 16% | 400 bps |
Profit After Tax | ₹6.17 | ₹5.04 | 22% |
Earnings Per Share | ₹7.17 | ₹5.86 | 22% |
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:
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.
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.
Historical Stock Returns for Permanent Magnets
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-1.41% | +3.66% | -6.44% | +33.69% | -0.67% | +515.50% |