Permanent Magnets Limited conducted an earnings conference call on October 24, 2026, to discuss Q2 and H1 FY27 financial results, pursuant to SEBI Regulations 30 and 46.

Financial Performance

Q2 FY27 Standalone Results:

  • Revenue from operations: ₹72.5 crore, representing 49% year-on-year growth
  • EBITDA: ₹17.8 crore, representing 159% year-on-year growth
  • EBITDA margin: 25% (compared to 14% in Q2 FY26 and 19% in Q1 FY27)

H1 FY27 Performance:

  • EBITDA margin for first half: 25%
  • Export vs Domestic split in Q2: 49% export, 51% domestic

Segment Performance & Business Updates

EV Segment:

  • Strong demand driven by increased requirements from export markets
  • Q2 automotive sales: ₹24 crore (Q1 FY27: ₹15 crore; Q2 FY26: ₹10.5 crore)
  • Demand expected to remain at similar levels for rest of FY27
  • Products primarily used in inverters for current sensing applications

Smart Meter Business:

  • Domestic demand picked up during the quarter
  • Expected to remain at similar levels based on current information

Alloys Division:

  • H1 revenue: approximately ₹12 crore
  • Full-year FY27 revenue guidance: ₹40-50 crore
  • Faced teething issues with new furnace affecting capacity utilization
  • Issues resolved, better utilization expected in H2 FY27
  • Expected to operate at breakeven or slightly positive EBITDA margin for FY27
  • FY28 projected revenue: ₹70-80 crore
  • Gross margin expectations: 10-15% for virgin alloys, 15-25% for returned alloys
  • Received orders from oil & gas, aerospace, and industrial applications

Relays Business:

  • Commercial ramp-up delayed to FY28 (previously expected in FY27)
  • Pilot supplies expected in H2 FY27
  • Gross margin expectation: 15-20%
  • Potential to become ₹40-50 crore business
  • Product approved as per UC standard but requires customer-specific modifications

Quantum Magnetics:

  • Phase 2 capex (block cutting, machining, surface treatment) commissioned in October 2026
  • Product approval process to start soon
  • Applied and approved for PLI under ECMS scheme (25% of capex as incentive)
  • FY28 revenue potential: ₹10-40 crore (wide range depending on customer allocation)
  • Phase 2 capacity: ₹40-60 crore at optimal utilization
  • Phase 3 (metal-to-block manufacturing) deferred until after Phase 2 commercialization
  • Talking to 3-4 customers in electronics, automotive, and specialized motors industries

Other Business Updates

Module Business:

  • Started supplies to automotive sector
  • Selling on international online platforms

Water Meter Product:

  • Developing product in pilot lot stage
  • Supplied 2,000-3,000 parts for testing
  • Potential: ₹5-10 crore per product

Plant Consolidation:

  • Planning to consolidate all plants in one location
  • Expected timeline: 2 years
  • Expected building cost: ₹30 crore (land already acquired for ₹25 crore)
  • Expected savings: ₹5 crore annually in rent costs

Management Guidance

FY27 Outlook:

  • Overall growth expected: 20-30%
  • EBITDA margin expected: 20-25% for full year
  • Alloys division expected to contribute ₹40-50 crore revenue

FY28 Outlook:

  • Healthy growth expected across businesses
  • Alloys division potential: ₹70-80 crore
  • Relay business expected to ramp up
  • Quantum Magnetics expected to start commercial operations