Mazda Ltd — no, not the Japanese carmaker that vrooms — this one is an Ahmedabad-based hybrid of heavy engineering and fruit jam wizardry. Listed at ₹238 per share with a market cap of ₹478 crore, Mazda Ltd is what happens when vacuum pumps meet mango pulp. The company’s Q2 FY26 (ended September 2025) brought revenue of ₹50.84 crore and PAT of ₹7.58 crore — a quarter where engineering sales did the heavy lifting while jams just sat sweetly in the corner.
Quarterly profit dipped 15.6% QoQ and 10.5% YoY — yes, margins took a bit of a chill, but the engineers are still smiling thanks to new export orders. The company even bagged a USD 11.67 million export order in December 2024, proving Gujarat can build more than just political rallies and dhokla factories. With zero debt, ROCE at 15.2%, and a dividend yield of 1.5%, Mazda looks like that low-profile relative who quietly buys property while everyone else is showing off cars.
2. Introduction
Welcome to Mazda Ltd — a company that manufactures vacuum systems, evaporators, and pollution control equipment by day, and jams and squashes under the brand “B-Cool” by night. If Iron Man had a Gujarati cousin, he’d probably run this kind of business — equal parts technology, flavor, and flair.
Founded in 1990, Mazda has somehow managed to build a dual identity — part engineering powerhouse serving industries like refineries, petrochemicals, and power, and part nostalgic FMCG brand with fruit-based products your nani probably remembers from 2004. Over the years, the Engineering Division has become the main breadwinner (91% of revenue in FY25), while the food segment is the cool kid that occasionally gets pocket money.
Financially, the company’s long-term story is steady and mature. Sales have grown from ₹103 crore in FY14 to ₹201 crore in FY25. Net profit stands stable at ₹25 crore, yielding an EPS of ₹12.73. Mazda is almost debt-free, has a current ratio of 4.5x, and invests ₹78 crore of its money in debt instruments. In short, it behaves less like a risk-taking startup and more like that uncle who won’t spend a rupee unless there’s a tax benefit involved.
3. Business Model – WTF Do They Even Do?
Mazda Limited operates two distinct divisions — Engineering and Food, which sounds like a strange mix until you realize both involve boiling, condensing, and preserving things under pressure.
Engineering Division (91% of FY25 revenue): This is the real moneymaker. The company manufactures industrial equipment like vacuum systems, condensers, crystallizers, evaporators, heaters, and air pollution control systems. Clients include serious names like Siemens, SRF, Triveni Turbine, Lupin, and Vedanta — meaning they’re not just making stuff for random clients but for giants who actually pay on time.
Their equipment is used across a buffet of sectors — refineries, petrochemicals, power, fertilizers, and even sugar. Essentially, if there’s an industrial plant in India that emits steam, Mazda probably has a product there.
Food Division (9% of FY25 revenue): Then there’s B-Cool, Mazda’s in-house FMCG brand for jams, squashes, instant drink powders, and fruit mixes. Think of it as the company’s fun hobby project. While the division contributes little to the bottom line, it offers diversification and brand recall — plus, it makes board meetings smell nicer.
The future focus lies in hydrogen and desalination technologies, along with ion exchange membranes and a patented hybrid MVR/TVR-based evaporation system. Fancy words aside, this means Mazda wants to become the Thermodynamics Tinder of Indian industry — matching heat with efficiency.
4. Financials Overview
Quarterly Results: Figures in ₹ Crores
Metric
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
50.84
56.79
49.63
-10.5%
2.4%
EBITDA
10.46
8.99
3.23
16.4%
223.8%
PAT
7.58
8.98
4.91
-15.6%
54.3%
EPS (₹)
3.79
4.49
2.45
-15.6%
54.7%
The story here is classic engineering volatility. Revenue dipped YoY thanks to slower order execution, but QoQ margins recovered beautifully — a 3x jump in EBITDA. The quarterly EPS of ₹3.79 annualizes to ₹15.16, giving a P/E of 15.7x on current price — far below the industry P/E of 34.5x.
Looks like the market is undervaluing a profit-making, debt-free company — or maybe investors are too distracted by electric vehicles and forgotten that vacuum systems also suck… in a good way.
5. Valuation Discussion – Fair Value Range Only
Let’s crunch the numbers — carefully, because engineers hate exaggeration.
Method 1: P/E Valuation
Annualized EPS (Q2 FY26): ₹15.16
Industry P/E: 34.5
Mazda Current P/E: 18.8
Fair Value Range (P/E 18–26): = ₹15.16 × 18 → ₹273 = ₹15.16 × 26 → ₹394
Fair Value Range (P/E-based): ₹273–₹394
Method 2: EV/EBITDA Valuation
EV = ₹469 Cr
EBITDA (TTM) = ₹38.5 Cr
EV/EBITDA = 12.2x Industry average ~15x At 15x → ₹38.5 × 15 = ₹577 Cr EV → implies equity value around ₹586 Cr → Fair Value ~ ₹290–₹360 per share
Method 3: DCF (Conservative Growth 6%, WACC 11%) Intrinsic value estimate: ₹280–₹320 per share
