Pricol Limited , a leading automotive component manufacturer, has reported robust financial results for the second quarter, showcasing significant growth and strategic expansion.

Strong Financial Performance

Pricol Limited delivered impressive quarterly results, with consolidated revenue from operations reaching INR 988.00 crores, representing a substantial 52% growth compared to the same period last year. This growth was driven by both organic expansion and the strategic acquisition of Pricol Precision Products Private Limited (formerly the injection molding division of Sundaram Auto).

Key financial highlights for Q2 include:

For the first half, Pricol reported:

Maiden Dividend Announcement

In a significant move, Pricol Limited announced its first dividend of INR 2 per share. This decision reflects the company's strong financial position and commitment to shareholder returns.

Business Segment Performance

Pricol's management provided insights into the performance of its key business segments:

1. Polymer Business (Pricol Precision Products):

   • Expected revenue: INR 850-900 crores
   • EBITDA margin improvement from 6.3% to 9.5%
   • Projected growth: 11-15% annually

2. ACFMS (Actuation, Control and Fluid Management Systems) Division:

   • Anticipated growth: 30-35% year-on-year for the next 2-3 years
   • Current revenue: Approximately INR 600 crores

3. DICVS (Driver Information and Connected Vehicle Solutions) Division:

   • Projected revenue: INR 2,100-2,200 crores
   • Expected EBITDA margin: 12.5-13%

Strategic Initiatives and Future Outlook

Pricol is actively pursuing several strategic initiatives to drive future growth:

1. Capacity Expansion: The company plans a significant CAPEX of INR 250-300 crores annually for the next two fiscal years, focusing on capacity expansion across divisions.

2. New Product Verticals: Pricol is entering new product categories, including disc brakes, switches, and smart e-cockpits, which are expected to contribute to growth in the coming years.

3. Technology Partnerships: The company has entered into technology license agreements for handlebar switches and throttle products, with production expected to commence in about 24 months.

4. Backward Integration: Pricol is investing in optical bonding and screen manufacturing capabilities to reduce import dependence and improve cost competitiveness.

Challenges and Opportunities

While Pricol has successfully navigated the rare earth magnet crisis, management highlighted potential challenges from a semiconductor crisis caused by Nexperia, which could impact the automotive industry. However, the company is actively working on finding alternate sources and solutions to mitigate these risks.

Vikram Mohan, Managing Director of Pricol Limited, expressed confidence in the company's ability to manage the current industry challenges and meet investor expectations in the coming quarters.

As Pricol Limited continues to expand its product portfolio and strengthen its market position, the company appears well-positioned to capitalize on the growing opportunities in the automotive component sector, despite potential short-term industry headwinds.

Pricol , a leading automotive component manufacturer, has reported a strong financial performance for the second quarter, showcasing significant growth across key metrics. The company also announced its unaudited financial results for the quarter and half-year ended September 30, 2025.

Financial Highlights

All financial figures in million rupees, except percentages

Key Takeaways

• Robust Profit Growth: Pricol's consolidated net profit surged by 42.00%, reaching 640.00 million rupees compared to 451.00 million rupees in the same quarter of the previous year.

• Substantial Revenue Increase: The company witnessed a remarkable 52.00% growth in revenue, which rose to 9,900.00 million rupees from 6,500.00 million rupees year-over-year.

• EBITDA Expansion: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 29.00% to 1,000.00 million rupees, up from 773.00 million rupees in the corresponding quarter last year.

• Margin Compression: Despite overall growth, the EBITDA margin experienced a slight compression, decreasing to 10.12% from 11.88% in the previous year.

• Interim Dividend: The company declared an interim dividend of ₹2 per share (200%) for the financial year 2025-26, payable to shareholders on record as of November 14, 2025.

Analysis

Pricol's financial results for the second quarter demonstrate the company's ability to achieve substantial growth in a challenging market environment. The significant increase in revenue suggests strong demand for Pricol's automotive components and effective execution of its business strategies.

While the company has shown impressive top-line and bottom-line growth, the compression in EBITDA margin indicates potential cost pressures or changes in the product mix. This could be due to factors such as rising input costs or investments in growth initiatives.

The robust performance in net profit, despite the margin compression, highlights Pricol's effective cost management and operational efficiency. The company appears to be balancing growth with profitability, which is crucial in the competitive automotive component sector.

Additional Information

• The Board of Directors approved the financial results on November 6, 2025.
• Pricol has changed its financial reporting format from INR Lakhs to INR Crores due to increased operational size.
• The company operates primarily in the automotive components segment.
• An investor conference call is scheduled for November 7, 2025, to discuss the quarterly results.
• The financial statements received limited review from statutory auditors Sundaram & Srinivasan, Chartered Accountants.