Permanent Magnets Limited (PML) recently reported its financial results for the second quarter, revealing a 12% year-on-year decline in revenue to INR 49.00 crores. The company, however, remains optimistic about its future growth prospects, projecting a 15% growth for the current year and a 20-30% growth for the following fiscal year.

Q2 Performance and Challenges

PML's Q2 performance was primarily affected by two key factors:

1. Lower US exports due to tariff policy changes
2. Weaker domestic demand in the energy meter segment

Despite these challenges, PML's management expressed confidence in the company's ability to navigate through the current market conditions.

Future Growth Drivers

PML is focusing on several initiatives to drive growth:

1. New Alloy Furnace Capacity: The company plans to bring a new alloy furnace online in December, which is expected to boost production capacity.

2. Relay Facility: A new relay facility is scheduled to become operational in Q4, potentially opening up new revenue streams.

3. Quantum Magnetics Joint Venture: PML has formed a joint venture with Lorentic Pte Limited to manufacture rare earth permanent magnets, with a long-term goal of achieving INR 3,700.00 crores in revenue by FY30.

Product Mix and Margin Outlook

PML's product mix for the last quarter was as follows:

The company expects its EBITDA margins to stabilize between 16-18% in the coming year, depending on the product mix.

Expansion into New Markets

PML is actively exploring new markets and applications:

• Standard current sensors for EV two-wheelers and other automotive applications
• Potential expansion into UPS and industrial applications
• Development of Stator-Rotor manufacturing for automotive coolant pumps

Challenges and Opportunities

While PML faces challenges such as US tariffs and fluctuating demand in certain segments, it also sees significant opportunities:

• Growing demand for non-Chinese sources of rare earth magnets
• Potential government support for the rare earth magnet industry in India
• Increasing interest from automotive and electronics industries for locally sourced components

Looking Ahead

Sharad Taparia, Managing Director of PML, stated, "Our expectation is roughly about maybe 10% to 15% growth. So we may end up between, let's say, INR 220.00 crores to INR 230.00 crores top line roughly, that is the expectation today."

The company's focus on diversification, capacity expansion, and entry into high-potential markets like rare earth magnets positions it for potential long-term growth, despite short-term challenges.

Investors and industry observers will be keenly watching PML's progress in executing its growth strategy, particularly the development of its Quantum Magnetics joint venture and the ramp-up of its new alloy and relay facilities.

Permanent Magnets Limited , a leading player in the engineering and current sensing applications sector, has released its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company's performance shows a mixed picture with some areas of growth and others facing challenges.

Revenue and Profitability

For Q2 FY2026, Permanent Magnets Limited reported standalone revenue from operations of Rs 48.74 crore, compared to Rs 53.16 crore in the previous quarter and Rs 50.60 crore in the same quarter last year. This represents a sequential decline of 8.30% and a year-on-year decrease of 3.70%.

The company's net profit for the quarter stood at Rs 3.73 crore, showing a significant decrease from the previous quarter's Rs 7.28 crore. However, it remained stable compared to the Rs 3.73 crore reported in the same quarter last year.

Half-Year Performance

For the half-year period ended September 30, 2025, Permanent Magnets Limited achieved:

• Consolidated revenue: Rs 102.68 crore
• Consolidated net profit: Rs 8.53 crore
• Standalone revenue: Rs 101.90 crore
• Standalone net profit: Rs 11.17 crore

Financial Position

As of September 30, 2025:

• Consolidated total assets: Rs 208.58 crore (up from Rs 194.16 crore at the end of the previous fiscal year)
• Total equity: Rs 150.85 crore (increased from Rs 144.04 crore)

Earnings Per Share

• Standalone Q2 EPS (basic and diluted): Rs 4.52
• Consolidated half-year EPS: Rs 9.92

Operational Highlights

• Cost of materials consumed (half-year, consolidated): Rs 54.80 crore
• Employee benefits expenses (half-year): Rs 7.49 crore (up from Rs 6.59 crore in the same period last year)
• Inventories: Rs 62.75 crore (increased from Rs 54.15 crore at the end of the previous fiscal year)

Management Commentary

Sharad Taparia, Managing Director of Permanent Magnets Limited, signed off on the financial results. The Board of Directors reviewed and approved the results, which have been subject to limited review by the statutory auditors.

Auditor's Review

Jayesh Sanghrajka & Co. LLP, the statutory auditors, conducted a limited review of the financial results. They reported that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Legal Update

The auditors noted that the Honorable Bombay High Court has given an interim stay order against a winding-up order previously passed against the company. The next hearing is scheduled as per the court's listing.

Subsidiary Operations

Quantum Magnetics Private Limited, a wholly-owned subsidiary, entered into a Joint Venture Agreement with Lorentic Pte Limited and the Holding Company on August 28, 2025. As of September 30, 2025, the entity continues to be consolidated as a subsidiary since effective control is still retained by the Holding Company.

Investors and stakeholders can access detailed financial results on the company's website at www.pmlindia.com and on the BSE website at www.bseindia.com .

Permanent Magnets Limited continues to navigate through market challenges while maintaining its operational focus. The company's ability to sustain profitability despite revenue pressures demonstrates resilience, but the decline in quarterly performance suggests ongoing market headwinds that warrant close monitoring in the coming quarters.