1. Opening Hook
The Indian auto industry sneezed in Q2, and PPAP caught a full-blown cold. While OEMs talked optimism, PPAP quietly slipped into a loss—blaming batteries, approvals, and “model mix.”
Capacity sat idle, EBITDA sulked, and the lithium-ion dream chose to remain lithium-ion theory. Yet management stayed upbeat, waving a ₹4,171 crore lifetime order book and promising that Q2 was just a bad chapter, not the whole book.
Festive demand, new model launches, aftermarket growth, tooling spin-offs—everything is expected to magically align in H2. The question isn’t what PPAP wants to do. It’s when execution finally shows up.
Read on. The numbers are more honest than the optimism.
2. At a Glance
- Revenue down 5.2% YoY – OEMs blinked, PPAP felt it first.
- EBITDA down 22% – Fixed costs stayed loyal even when volumes didn’t.
- PAT at –₹2.3 cr (H1) – Battery business quietly draining cash.
- Capacity utilization 65% – Machines waiting for customers.
- Order wins ₹707 cr (H1) – Pipeline strong, cash flows not yet invited.
- Battery plant at 5% utilization – Lithium-ion, but enthusiasm discharged.
3. Management’s Key Commentary
“The industry remained subdued through most of Q2.”
(Blame shared evenly with OEMs, inventories, GST, and sentiment 😏)
“Consolidated revenue declined due to delayed program ramp-ups.”
(Orders exist, production schedules didn’t cooperate)
“Battery business losses were due to delayed approvals.”
(Same story, new quarter 🔁)
“We secured lifetime orders worth ₹621 crores in Q2.”
(Long-term visibility, short-term pain)
“Aftermarket business grew 37% YoY.”
(One bright spot quietly doing its job 🚀)
“Battery division will improve in H2.”
(Hope officially deferred, not cancelled)
“We see FY26 revenue of ₹575–600 crores.”
(Back-loaded confidence activated)
4. Numbers Decoded
Metric Q2 / H1 FY26 What It Means
------------------------------------------------------------
Revenue (H1) ₹253.6 cr Volume pain visible
EBITDA (H1) ₹22 cr Operating leverage vanished
EBITDA Margin ~8.7% Far from mid-term goals
PAT (H1) –₹2.3 cr Loss led by batteries
Capacity Utilization 65% Idle assets, full depreciation
Battery Utilization 5% Pilot plant mode continues
Lifetime Order Book ₹4,171 cr Comforting, but slow burn
Strong order book ≠ immediate profitability. Timing remains the villain.
5. Analyst Questions
- “Industry grew, why did PPAP decline?”
Answer:
