Pricol Limited Q2FY26 Concall Decoded: – Plastics, chips, and a dash of déjà vu
1. Opening Hook
If the Indian auto industry is a soap opera, Pricol’s the one with the most plot twists — rare earth crises, chip shortages, and still a blockbuster 52% revenue growth. Vikram Mohan opened the call sounding like a man juggling a semiconductor and a steering wheel at the same time, yet smiling about it. Between an acquisition that’s molding profits (literally) and a new disc brake dream, Pricol’s turning engineering grit into entertainment.
And wait till you hear the part about CAPEX — ₹250–300 crores this year, another ₹250 next — because who needs sleep when there are plants to build? 😏
2. At a Glance
Revenue up 52% YoY: Half from new plastic toys (Pricol Precision), half pure horsepower.
EBITDA ₹123.35 cr; margin 12.49%: Margins didn’t skid, just adjusted for some new plastic polish.
PAT ₹64 cr (Q2): Up smartly, thanks to synergy, not sorcery.
EPS ₹5.25 (Q2) / ₹9.34 (H1): Investors got something to smile about after years of dashboard watching.
CAPEX ₹250–300 cr: Expansion spree continues — because depreciation is the new cardio.
Dividend ₹2/share: First-ever payout, but don’t expect an encore this year — CAPEX ate the dessert.
Stock up: Auto suppliers don’t often flex 50% topline growth. Traders noticed.
3. Management’s Key Commentary
“Our revenue grew 52% both organically and inorganically.” (Read: The plastic acquisition came pre-packaged with growth stickers.)
“Pricol Precision’s margin improved from 6.3% to 9.5% in six months.” (Translation: Cost-cutting done right; no layoffs, just better molding machines.)
“The rare earth magnet crisis is behind us.” (So we survived that… only to meet the ‘Nexperia’ chip apocalypse.) 😅
“Festive season’s over, and Q3 is always weaker in auto.” (Read: Don’t blame us if volumes dip — it’s a seasonal religion now.)
“A semiconductor crisis is unfolding; we’ll be short of internal targets by 4–5%.” (At this point, even supply chain gods need therapy.)
“Disc brakes and ABS will be mandatory across all CCs.” (Government mandates = guaranteed order books. Thank you, regulators.)
“CAPEX this year and next — ₹250–300 cr each.” (Expansion so steady, even the CFO’s Excel got tired of copying formulas.)
“We aim for ₹8,000 cr revenue by FY31.” (Auto firms love round numbers — even if they’re seven years away.) 😏
