PPAPNSEPPAP Automotive Limited· Auto AncillariesMediumNeutral
Announced Fri, 20 Feb · 17:24 IST

PPAP Automotive Limited has informed the Exchange about Transcript

Cfo Debt Reduction RoadmapOrder Pipeline DisclosedMgmt Guided Margin ImprovementInvestor Communications View source PDF

PPAP · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

PPAP Automotive held its Q3 FY26 earnings call, with the major highlight being the completed sale of its 50% stake in the Tokai Kogyo JV for INR100 crores, against INR48.5 crores invested over 14 years with negligible returns. The company said the proceeds will be used to cut net debt (targeting a ~30% reduction in interest cost) and fund strategic capex. Q3 FY26 consolidated revenue was INR138.9 crores (broadly flat YoY) with a marginal PAT of INR6.61 lakhs, while 9M FY26 revenue declined 3.5% to INR392.47 crores. Management reiterated FY26 guidance of ~INR575 crores revenue, ~INR58 crores EBITDA, and ~INR8 crores PAT (excluding the one-time JV gain). Order book was disclosed at INR752 crores (EV INR38 cr, non-EV INR714 cr), with 95% from passenger vehicles and 5% from 2-wheelers and other segments; FY27 guidance has been deferred to the March Board meeting.

Likely market impact

The JV exit removes a long-standing drag on consolidated profitability and the INR100 crores inflow meaningfully strengthens the balance sheet. Q3 results were weak due to model-specific demand softness at Maruti, Tata, and Honda, but management indicated an encouraging volume ramp-up in Q4; stock action in the near term is likely to track the FY27 guidance due in March.