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.) 😏
4. Numbers Decoded
| Metric | Q2FY26 | Q1FY26 | Q2FY25 | Comment |
|---|---|---|---|---|
| Consolidated Revenue | ₹988 cr | ₹877 cr | ₹650 cr | Up 52% — partly from new plastic kingdom. |
| EBITDA | ₹123.3 cr | ₹101.7 cr | ₹87.2 cr | 41% jump — shiny new assets helped. |
| EBITDA Margin | 12.5% | 11.6% | 13.4% | Dipped slightly with low-margin acquisition. |
| PAT | ₹64 cr | ₹49.8 cr | ₹40 cr | Profit kept up with horsepower. |
| H1FY26 Revenue | ₹1,865.6 cr | — | ₹1,253 cr | 49% YoY growth — double-engine drive. |
| H1FY26 EBITDA | ₹225 cr | — | ₹168 cr | Margin 12.07% — stable, despite consolidation load. |
| CAPEX (FY26 est.) | ₹250–300 cr | — | — | More plants, more plastic, more depreciation. |
TL;DR:A massive growth quarter fueled by M&A, disc brakes, and a chip crisis still politely “under control.”
5. Analyst Questions
Q:What’s Pricol Precision contributing now?A:₹235 cr revenue, 9% margin — up from 6%. (Translation: cleanup working.)
Q:Any impact from semiconductor shortage?A:Yes, but we’ve found alternate parts — revenue may lag by two weeks.
Q:CAPEX plan looks aggressive — why?A:New product verticals and switch tech licensing need fresh capacity.
Q:Dividend policy?A:Don’t get used to it — next few years are “CAPEX years.”
Q:Disc brakes outlook?A:Mandatory ABS = Disc brakes for all. Government just wrote us a bonus check. 😎
Q:Progress on BOE tech tie-up?A:Plant under construction; backward integration for screens — not new
