PPAP Automotive Reports Revenue Decline in H1, Expects Recovery with New Model Launches

PPAP Automotive Ltd (ISIN: INE095I01015) reported a 5.2% year-on-year decline in consolidated revenue to INR 253.60 crores for the first half, reflecting subdued automotive demand and delayed battery business approvals. Despite the challenges, the company remains optimistic about a recovery in the second half, buoyed by new model launches and diversification efforts.

Financial Performance

The company's financial results for H1 showed:

Metric	H1	YoY Change
Revenue	INR 253.60 crores	-5.2%
EBITDA	INR 22.00 crores	-21.9%
PAT	INR -2.30 crores (Loss)	N/A

The decline in EBITDA was primarily attributed to lower asset utilization and under-absorption of fixed costs due to reduced production volumes. The battery business contributed a loss of INR 2.10 crores, impacting the overall profitability.

Order Book and New Launches

Despite the challenging environment, PPAP Automotive secured new lifetime orders worth INR 707.00 crores in H1, including INR 16.00 crores from EV programs. The company's total lifetime order book now stands at INR 4,171.00 crores, providing long-term revenue visibility.

PPAP has commenced supplies for new vehicle launches, including:

Tata Altroz
Maruti Victoris
Vinfast VF6

Segment Performance

Aftermarket Business

The Elpis brand continued its growth momentum, expanding 37% year-on-year in Q2, with 133 active distribution partners and 1,269 products.

Commercial Tool Room

Operating under the Meraki brand, this division received orders for 106 molds in H1, with a current order book of 138 molds worth INR 30.00 crores.

Industrial Products

This division is expected to see multifold growth compared to the previous year, driven by strong traction in domestic and export markets.

Battery Division

Under Avinya Batteries, the division faced delays in customer approvals, impacting Q2 sales. However, the company anticipates improved performance in H2.

Outlook and Guidance

PPAP Automotive expects a more positive outlook for H2, supported by:

Festive demand
Improving rural sentiment
Impact of GST 2.0 and monetary easing measures
New project start-ups (Tata Sierra, Renault Duster, Maruti Suzuki e Vitara)

For the full year, the company has provided the following guidance:

Consolidated Revenue: INR 575.00-600.00 crores
EBITDA: INR 60.00-65.00 crores
PAT: INR 10.00-12.00 crores

Management Commentary

Abhishek Jain, Managing Director and CEO, commented, "The year has begun with a strong strategic win and a healthy order book even as quarter 2 reflected near short-term revenue moderation amid a subdued industry environment. We expect that the coming quarters will gain momentum, supported by new program launches, enhanced execution and a gradual recovery in automotive sector demand."

As PPAP Automotive navigates through the current challenges, its diversification strategy and new order wins position the company for potential growth in the latter half. Investors will be closely watching the execution of new projects and the recovery in the automotive sector to gauge the company's performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.38%	-6.90%	-9.43%	+18.93%	+22.10%	-10.23%

PPAP Automotive Limited , a leading manufacturer of automotive sealing systems and interior and exterior automotive parts, has reported significant order wins and a robust order backlog, signaling strong future revenue potential despite current financial challenges.

Key Highlights

Lifetime order wins of INR 707.00 crore in H1FY26
Significant order of INR 460.00 crore from Tata Motors
Total order backlog stands at INR 4,171.00 crore
Q2FY26 financial results show mixed performance

Order Book Expansion

PPAP Automotive has secured lifetime orders worth INR 707.00 crore in the first half of FY2026, underscoring its strengthening position in both electric vehicle (EV) and non-EV segments. A major highlight was a significant order from Tata Motors, valued at INR 460.00 crore, covering both plastic and rubber extrusion components. This order is set to be executed over a three to five-year period, providing long-term revenue visibility.

The company's order backlog has reached INR 4,171.00 crore, offering strong long-term revenue potential. This substantial backlog reflects PPAP Automotive's successful strategic partnerships with leading OEMs and growing trust among EV players.

Expanding Customer Base

PPAP Automotive has begun supplies for new programs including Tata-Altroz, Maruti-Victoris, and Vinfast-VF6, further deepening its relationships with key OEMs. The company continues to enhance its engagement with major automotive manufacturers such as Maruti Suzuki, Tata Motors, Toyota, Honda, Renault, Mahindra, and SMG, while also expanding partnerships with emerging EV players.

Financial Performance

While the order book shows promise, the company's financial results for Q2FY26 present a mixed picture:

Particulars (INR Lakhs)	Q2 FY26	Q2 FY25	Y-o-Y Change
Revenue from operations	13,695.82	14,485.89	-5.5%
EBITDA	1,296.23	1,669.44	-22.3%
EBITDA Margin	9.3%	11.3%	-200 bps
Net Profit/(Loss)	(4.56)	285.57	-

The company experienced a 5.5% year-on-year decline in revenue from operations in Q2FY26. EBITDA also saw a significant decrease of 22.3%, with margins contracting by 200 basis points. The quarter ended with a marginal net loss of INR 4.56 lakhs, compared to a profit in the same quarter last year.

Management Commentary

Abhishek Jain, MD & CEO of PPAP Automotive Ltd, commented on the developments: "We are pleased to see our continued strategic focus translating into meaningful business wins across OEMs. The growing engagement with leading passenger vehicle manufacturers reflects the confidence placed in our solutions and manufacturing capabilities. With a robust order pipeline, an expanding presence in EV programs, and sustained quality performance, we remain optimistic about delivering long-term, sustainable growth for all stakeholders."

Outlook

Despite the current financial challenges, PPAP Automotive's strong order book and strategic positioning in both traditional and EV segments suggest potential for future growth. The company's ability to secure significant orders from major OEMs indicates its competitive strength in the automotive components sector.

Investors and stakeholders will be watching closely to see how PPAP Automotive translates its robust order backlog into improved financial performance in the coming quarters. The company's success in executing these orders efficiently will be crucial in determining its future trajectory in the dynamic automotive supply chain landscape.