The document is a transcript of the Q1 FY27 Earnings Conference Call held on Monday, 10th August, 2026, to discuss financial results for the quarter ended 30th June, 2026.
The event was an earnings conference call with management presentations followed by a Q&A session with analysts and investors.
Management participants included Mr. Abhishek Jain (Managing Director and Chief Executive Officer) and Mr. Sachin Jain (Chief Financial Officer), along with Strategic Growth Advisors as Investor Relations Advisor.
The transcript is available on the company's website at: https://www.ppapco.in/financials#conferencecalltranscript
The company disclosed that the call contained forward-looking statements based on beliefs, opinions and expectations as of the call date, with the usual disclaimer that these are not guarantees of future performance.
Financial & Business Performance Highlights
Consolidated Financials: Revenue from operations reached INR 156.4 crores in Q1 FY27, representing 34.1% year-on-year growth. EBITDA increased by 33.3% year-on-year to INR 12.4 crores.
Automotive Parts Business: Continued as the largest revenue contributor. Secured lifetime orders worth INR 131 crores (51.8% YoY growth), with EV programs contributing INR 64 crores of this total.
Technology Partnership: Announced technology partnership with Hutchinson for advanced automotive sealing systems, focusing initially on glass run channel solutions for the Indian market.
Aftermarket Business: Revenue grew 30% YoY in Q1 FY27. Launched 345 new SKUs, expanding total portfolio to 1,312 SKUs. Distribution network expanded to 155 distributors. Currently contributes 6% of total revenue with a target to reach 10%.
Tooling Business: Maintained healthy order pipeline with 84% capacity utilization. Received orders for 30 molds with a pipeline of 124 molds. Business to be hived off into wholly owned subsidiary Meraki Precision Tools Engineering Limited by Q3 FY27.
Industrial Products Business: Witnessed moderation in Q1 FY27 due to seasonal demand, but 30% of revenue came from exports. Contributes less than 1% of total revenue with target to reach 10% medium-term.
Battery Business: Revenue increased 4x year-on-year in Q1 FY27 (on a lower base). Business continues to operate in challenging environment with raw material cost increases and pricing pressures. Focus remains on minimizing losses.
Strategic Initiatives & Restructuring
Unified Identity: Decision to bring company and all subsidiaries under unified identity of Ajay Group to create future-ready organization.
Tooling Business Restructuring: Process underway to hive off tooling business into Meraki Precision Tools Engineering Limited (wholly owned subsidiary), expected completion by Q3 FY27.
Merger Process: Initiated process to merge Avinya Batteries Limited with PPAP, expected completion by Q4 FY27.
Operational Highlights & Challenges
Raw Material Inflation: 4% raw material cost increase in Q1 FY27, with only 2% successfully passed through to customers. Balance 2% under discussion with customers, expected settlement by end of Q2 or early Q3 FY27.
Capacity Utilization: Stood at 73% in Q1 FY27 across operations.
Debt Reduction: Target to become net debt free within next 3 years.
Margin Guidance: Sustainable EBITDA margins expected at 12-13% long-term (compared to current ~8%).
Industry Context
Auto industry delivered exceptionally strong Q1 performance with record quarterly sales across passenger vehicles, commercial vehicles and 3-wheelers.
Passenger vehicle sales increased 25% YoY to 1.27 million units; two-wheeler sales grew 20.3%; commercial vehicle sales rose 18.3%; three-wheeler sales grew 29.7%.
Growth supported by lower GST rates, improved finance availability, new model launches, and strengthening consumer demand.
Additional Notes
The document represents an edited transcript of the earnings conference call, with disclaimer that in case of discrepancy, the audio recordings uploaded on the stock exchange on August 10, 2026 will prevail.
The transcript includes full Q&A session with analysts covering various aspects of business performance, strategy, and outlook.
