Pricol Limited , a leading automotive component manufacturer, has reported a robust performance for the first quarter, with significant growth across key financial metrics. The company's strategic initiatives and product diversification efforts have yielded positive results, despite facing challenges in the automotive sector.

Financial Highlights

Pricol Limited achieved impressive financial results for Q1:

• Revenue from operations stood at INR 877.66 crores, marking a substantial growth of 45.57% year-on-year.
• EBITDA reached INR 101.80 crores, with a margin of 11.61%, representing a 26.30% increase.
• Profit After Tax (PAT) rose to INR 49.89 crores, with a margin of 5.68%, showing a 9.51% growth.
• Earnings Per Share (EPS) improved to INR 4.09.

Segment Performance

The company's revenue mix for Q1 was as follows:

Pricol has outperformed the market across all segments, with the overall automotive industry growing by less than 2% during the quarter.

PRICOL Precision Products Performance

The subsidiary, PRICOL Precision Products, achieved a turnover of INR 205.00 crores with a 7% EBITDA margin in Q1. This marks a significant improvement from the previous year's Q1 performance of INR 170.00 crores turnover and 5% EBITDA margin.

Challenges and Mitigation Strategies

The company faced headwinds due to rare earth magnet shortages from China, affecting Q1 performance and expected to continue in Q2. Pricol is implementing alternative plans to mitigate these risks and maintain stability in operations.

New Product Launches and Strategic Initiatives

1. Disc Brake Products: Pricol has launched disc brake products for startup EVs and expects growth from the mandatory ABS regulation starting January 2026.

2. Technology License Agreement: The company signed an agreement with Italian firm Domino for two-wheeler handlebar components, with revenue expected in 12-16 months.

3. E-Cockpit and Battery Management Systems: These products are currently under testing at various customer locations, with potential for future growth.

4. Expansion in Actuation Control and Fuel Management Systems: The company is seeing growth in this segment, particularly in exports to marquee customers in Europe and the US.

Future Outlook

Pricol Limited has announced plans for INR 500.00 crores consolidated CAPEX over three years, with INR 250.00-300.00 crores allocated to PRICOL Precision Products. The company aims to maintain its growth momentum and continue outperforming the market.

P.M. Ganesh, Chief Executive Officer and Executive Director, commented, "Despite market uncertainties, PRICOL has shown resilience and double-digit growth. We are actively working on new products and technologies to maintain our competitive edge and drive future growth."

With its strategic initiatives and focus on product diversification, Pricol Limited is well-positioned to capitalize on emerging opportunities in the automotive component sector, while navigating challenges in the global supply chain.

Pricol Limited , a leading auto component manufacturer, has announced its financial results for the first quarter, showcasing robust growth and strategic advancements.

Financial Highlights

Pricol Limited reported consolidated revenue from operations of INR 8,776.60 crore for Q1, marking a significant year-on-year growth of 45.57%. The company's EBITDA stood at INR 1,018.62 crore, reflecting a 26.30% increase from the previous year. The EBITDA margin for the quarter was 11.61%.

Profit After Tax (PAT) reached INR 498.94 crore, showing a 9.51% growth year-on-year. The company's Basic Earnings Per Share (EPS) for the quarter was INR 4.09.

Strategic Partnerships and Product Launches

Pricol has entered into a Technology License Agreement with Italy-based DOMINO S.R.L., a global leader in motorcycle control systems. This partnership aims to expand advanced two-wheeler handlebar control technologies across India and Southeast Asia, positioning Pricol for innovation-driven growth in the automotive components sector.

The company also launched several new products during Q1, including:

• LCD display systems for Bajaj RE & Maxima and Chetak models
• TFT display system for TVSM iQube
• LCD display systems for Force Motors T3 CNG, TATA Motors Altroz Facelift & CNG, and TATA Hitachi Backhoe Loader Shinrai Pro

Awards and Recognition

Pricol's commitment to excellence was acknowledged through multiple awards:

• Received the "Special Support In Supply Chain" award from Suzuki Motorcycle India Limited for the fourth consecutive year
• Honored with the "Excellence in Business Competitiveness" award by Ather Energy
• Recognized with the "Supplier Excellence Recognition" award by Mann + Hummel

Market Position

As of the end of the quarter, Pricol Limited's stock closed at INR 458.90, with a market capitalization of INR 5,593.14 crore. The company's shareholding pattern shows promoter holding at 38.51%, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 16.07% and 15.50% respectively.

Management Commentary

Mr. Vikram Mohan, Managing Director of Pricol Limited, commented on the company's performance: "We have made meaningful progress this quarter by staying focused on our core strengths: operational excellence, technology integration, and market-driven solutions. We are closely monitoring the demand across key segments considering the external dynamics due to rare earth magnet shortage and we remain confident in our ability to sustain and build on this momentum. We are also excited about recent technology partnerships which will be an additional growth driver for the company."

Pricol Limited continues to demonstrate its resilience and adaptability in the dynamic automotive components market, with a strong focus on innovation and strategic partnerships driving its growth trajectory.