PL/SEC/TGT/2026-2027/114 Tuesday, 10th November 2026

Nature of Disclosure: Submission of conference call transcript pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015

Financial Performance Highlights

Q2 FY2027 Results (Quarter Ended 30th September 2026):

  • Revenue from operations: ₹1,334.02 crores
  • EBITDA margin: 11.82%
  • PAT: ₹85.21 crores
  • PAT margin: 6.39%

H1 FY2027 Performance (Half Year Ended 30th September 2026):

  • Revenue from operations: ₹2,417.60 crores
  • EBITDA margin: 11.64%
  • PAT margin: 6.30%
  • EPS: ₹12.49

Growth Comparisons:

  • Q2 FY2027 vs Q2 FY2026: Revenue growth of 35.03%, EBITDA growth of 27.87%
  • H1 FY2027 vs H1 FY2026: Revenue growth of 29.59%, EBITDA growth of 24.95%

Cost Pressure and Margin Challenges

Management identified three primary headwinds affecting margins:

1. Strong dollar appreciation against rupee leading to increased import costs

2. Bare PCB cost increases primarily due to West Asia crisis

3. Memory cost surge due to AI disruption

These cost pressures are expected to continue for "a few more quarters" before normalization. Management estimated the impact on EBITDA margin at 1-2% due to these "first-time cost escalations."

Business Segment Performance

All three divisions (DIS, ACFMS, and plastics business) grew at approximately 35% year-on-year in Q2 FY2027.

ACFMS Division Drivers:

  • Fuel pumps for two-wheeler applications (domestic market)
  • Large water pumps for export customers including Caterpillar in the US

Growth Drivers:

  • Strong domestic demand coupled with festive season
  • Two-wheeler industry recorded 35% growth (highest ever)
  • New product launches including Bajaj Pulsar with new generation TFT clusters
  • Market share gains across segments

P3L (Plastics Division) Update

Financial Performance:

  • Q2 FY2027 Revenue: ₹312 crores
  • Q2 FY2027 EBITDA margin: 9.9%

Capacity Expansion:

  • ₹350 crores CAPEX planned over next six quarters
  • Asset turnover target: 3-3.25
  • Currently operating at 100% capacity
  • Real growth expected from FY2028 onwards

Key Customers: TVS, Ather Energy, Royal Enfield, Autoliv, with Honda Motorcycles becoming key customer in upcoming financial year.

Demerger Update

  • Demerger application submitted and process ongoing
  • Internal operational divisionalization began from 1st October 2026
  • Expected to take "a couple of quarters" until final NCLT orders
  • Complete operationalization into DICVS and ACFMS divisions planned from 1st April 2027

Customer Negotiations

Management confirmed ongoing discussions with customers regarding cost pass-through for:

  • Bare PCB cost increases
  • Memory cost increases
  • Labor cost increases (particularly due to GO incorporation in northern India)
  • Power cost increases in casting operations

Expectations: Hope to conclude negotiations during next quarter (Q3 FY2027), but unlikely to achieve 100% recovery as customers cannot fully pass on increases to end customers.

Management Participants

  • P.M. Ganesh – Chief Executive Officer and Executive Director
  • Siddharth Manoharan – Group Executive Director, Business Strategy
  • Madhura Mohan – Executive Director, Customer Relationship Management and ESG
  • Priyadarsi Bastia – Chief Financial Officer

Moderator: Purvangi Jain from Valorem Advisors (Investor Relations)