Pricol has received regulatory approval to establish a new wholly owned subsidiary, marking a significant step in the company's expansion strategy. The automotive component manufacturer has also committed to invest up to ₹10 million in this new business entity.

Corporate Structure Expansion

The establishment of the new subsidiary represents Pricol's strategic approach to diversifying its business operations and exploring new growth opportunities. The company's decision to create a wholly owned subsidiary provides it with greater operational flexibility and control over the new venture.

Investment Strategy

Pricol's commitment to invest up to ₹10 million in the new subsidiary demonstrates the company's confidence in the venture's potential. This investment will likely support the subsidiary's initial operations, infrastructure development, and market entry activities.

Business Implications

The formation of a new wholly owned subsidiary allows Pricol to:

• Expand its operational footprint
• Explore new business verticals
• Maintain complete control over subsidiary operations
• Leverage synergies with existing business units

This strategic move reflects Pricol's commitment to growth and its ability to identify and capitalize on emerging business opportunities in the automotive component sector.

Pricol Limited has delivered impressive financial results for the third quarter of FY26, demonstrating strong operational performance across key metrics. The automotive components manufacturer reported significant growth in both revenue and profitability, reflecting the company's robust market position.

Financial Performance Overview

The company's standalone financial results show remarkable improvement across all major parameters. Revenue from operations surged to ₹780.99 crores in Q3FY26, marking a substantial 27.6% increase from ₹612.10 crores recorded in Q3FY25.

Consolidated Performance Milestone

On a consolidated basis, the company achieved a significant milestone by crossing the thousand crore mark during Q3. Management expressed satisfaction with consolidated revenue from operations reaching ₹1,020.36 crores compared to ₹615.91 crores in Q3FY25, representing a growth of 65.67%. Consolidated net profit increased to ₹63.69 crores from ₹41.45 crores in the previous year.

Strategic Partnerships and New Products

During the earnings call held on January 30, 2026, management highlighted several strategic initiatives. The company has signed an exclusive MOU with BOE, the world's largest display maker, for backward integration of LCD and TFT displays. This partnership aims to enhance localization activities in India for the company's growing display business.

Additionally, Pricol has partnered with Domino, a pioneer in premium switches and throttles for European two-wheeler customers, for joint development of switches and throttle systems.

Business Segment Performance

Pricol Precision (P3L), the company's polymer division, generated ₹233.00 crores in revenue during Q3 with an EBITDA margin of 9.33%. The division is operating at over 90% capacity utilization, prompting plans for capacity expansion and new facility creation.

The ACFMS (Actuation and Control Management System) division contributes approximately one-fourth of total consolidated revenue, with significant export content to US and European markets. The division posted 15% growth compared to Q3 of the previous financial year.

Future Outlook and Product Development

Management confirmed that disc brake production will commence with a large two-wheeler OEM by Q1 FY27, with initial capacity of 0.5 million units. The battery management system is in final development stages with a large two-wheeler customer, expected to enter mass production within four to five quarters.

The company maintains its track record of outperforming market growth, having grown more than 15% in recent quarters while the industry guidance suggests 8-9% growth for the sector.

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