1. Opening Hook
Another quarter, another reminder that global geopolitics can mess up even magnets. U.S. tariffs spooked customers, smart meters went on a diet, and exports politely stepped back. Q2 FY26 for Permanent Magnets Limited was less “attraction” and more “repulsion.”
But just when numbers looked dull, management started talking big — rare earth independence, Chinese supply disruption, and a JV roadmap stretching all the way to FY30 with revenues bigger than the company’s current market cap dreams.
This call wasn’t about how Q2 went wrong. It was about how the next five years might go spectacularly right — assuming everything works perfectly.
Read on, because the magnets may be permanent, but the optimism is definitely supercharged.
2. At a Glance
- Revenue down 12% YoY – U.S. tariffs said “not today.”
- H1 revenue down 7% – Slow bleed, not a collapse.
- EBITDA margin ~12% – Product mix playing villain.
- Alloy volumes up QoQ – One segment quietly doing push-ups.
- Relay project delayed – Customers testing like it’s a NASA launch.
- Quantum Magnetics JV active – China risk turned into capex ambition.
3. Management’s Key Commentary
“Revenue decline was mainly due to lower exports to the U.S.”
(Translation: One tariff policy, many sleepless nights 😏)
“The situation has since improved with resumption of business.”
(Translation: Customer blinked first.)
“Alloy facility expansion will immediately increase production.”
(Translation: We’re sold out and like it.)
“Relay approvals are taking longer than anticipated.”
(Translation: Utilities want 10-year warranties, not startup enthusiasm.)
“Quantum Magnetics aims for a full Indian rare earth supply chain.”
(Translation: China risk is our business opportunity.)
“500 tons pilot can generate ₹300–350 crore revenue.”
(Translation: Small pilot, very large Excel sheet 📊)
4. Numbers Decoded
Metric Q2 FY26 / Guidance What It Really Means
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Revenue ₹49 cr Export & meter pain
H1 Revenue ₹102.7 cr Flat-ish year
EBITDA Margin ~12% Mix turned ugly
FY26 Revenue Guidance ₹220–230 cr Alloy to the rescue
FY27 Growth Expectation 20–30% If projects behave
Alloy FY27 Revenue ₹40–70 cr Conservative optimism
Relay FY27 Potential ₹20–50 cr Approval gods permitting
- Alloy running at 100% capacity is the real hero of the quarter.
- Relays remain a “trust-building exercise,” not a revenue engine yet.
- Quantum Magnetics numbers are aspirational, but directionally massive.
5. Analyst
