Financial Performance Highlights
Permanent Magnets Limited reported strong FY26 results with standalone revenue growing 13% to ₹225.46 crores and net profit increasing 36% to ₹20.69 crores. Consolidated revenue reached ₹226.24 crores (up 10.3% YoY) with net profit of ₹14.77 crores (EPS: ₹17.52). EBITDA margin improved to 17% on standalone basis and 16% consolidated, driven by alloys division scale-up and operational efficiencies.
Operational and Strategic Updates
The company commissioned a new furnace in January 2026 which operated at near-optimum capacity in Q4, obtaining AS9100D certification for aerospace and defense applications. Relays manufacturing is progressing through customer qualification with commercial production expected in H2 FY27. The Quantum Magnetics subsidiary is advancing its rare earth permanent magnets venture, targeting integrated capacity of 5,000 tonnes by FY31, though Phase 2 implementation is delayed to Q3 FY27.
Dividend and Corporate Actions
The Board recommended a final dividend of ₹2.20 per equity share (22% on face value) with record date of July 28, 2026. The company seeks shareholder approval to increase borrowing limits to ₹300 crores from ₹100 crores to fund expansion initiatives. Credit ratings were reaffirmed at ACUITE BBB (Long Term) and ACUITE A3+ (Short Term).
Auditor Report and Financial Controls
Auditors Jayesh Sanghrajka & Co. LLP issued an unqualified opinion confirming the financial statements give true and fair view and adequate internal financial controls. The balance sheet shows total assets of ₹282.15 crores with current assets of ₹172.83 crores including cash equivalents of ₹28.11 crores. Borrowings stood at ₹70.31 crores with term loans from Central Bank of India and State Bank of India.
Market Opportunity and Positioning
PML is positioned to benefit from India's smart metering opportunity under the Revamped Distribution Sector Scheme (RDSS) targeting 250 million installations with only 65 million completed as of April 2026. The company also supplies to global EV manufacturers amid growing EV sales of ~21 million units globally in 2025 and ~2.3 million units in India.
Risk Factors and Contingencies
The company disclosed contingent liabilities of ₹22.01 crore for interest on Central Excise loan and pending litigations including a winding up petition where ₹0.19 crores has been deposited with court. Other risks include product lifecycle changes, macroeconomic impacts on exports, competitive intensity, forex fluctuations, and project execution delays.
Corporate Governance and Compliance
The Board comprises 6 Directors including 1 Women Director, with key managerial personnel including Sharad Taparia (Managing Director), Sukhmal Jain (CFO), and Rachana Sawant (Company Secretary). CSR expenditure was ₹0.61 crores (2% of average net profit) focused on education, rural development, and healthcare initiatives.