Q1 2026 PPAP Automotive Ltd Earnings Call Transcript
Key Points
- PPAP Automotive Ltd (BOM:532934) secured lifetime orders worth INR86 crores, including INR11 crores from EV programs, highlighting growing traction in the EV space.
- The company's lifetime order book stands at INR3,439 crores, providing healthy revenue visibility over the next three to five years.
- The aftermarket business under Elpis saw a revenue increase of 27% year on year in quarter one, supported by both offline and online sales channels.
- The commercial toolroom business under Meraki Precision Tool Engineering showed a healthy order book increase of 30% year on year in quarter one.
- The company is optimistic about achieving its revenue guidance for FY26, supported by new program launches and improved execution.
- Consolidated revenue from operations declined by 4.9% year on year, primarily due to subdued demand and deferment of project launches by key OEMs.
- Capacity utilization in the parts business was low at 62%, reflecting lower volumes and irregular order inflows from major customers.
- The automotive industry faces challenges with a 5.1% sales decline in quarter one, impacting overall growth prospects.
- Margins were under pressure due to lower capacity utilization and weaker top-line performance.
- Some new model launches were delayed, affecting the company's ability to meet its revenue targets in the short term.
(audio in progress) to you, sir.
Yeah, thank you very much. A very good morning to everyone. I extend a very warm welcome to all the participants joining us on this call. I'm also joined today by Mr. Sachin Jain, the CFO of the company; along with our Investor Relations Advisors, Strategic Growth Advisors.
I hope all of you have had a chance to look at our results and investor presentation, which are available on the stock exchanges as well as on our website. I'd like to start today with the industry highlights.
India's automobile industry registered an overall sales decline of 5.1% in quarter one of financial year '26. Passenger vehicle volume fell by 1.4% year on year. And two-wheelers is contracted by 6.2%, while three-wheelers inched up by 0.1%. Commercial vehicle sales were marginally down 5.6%.
Looking ahead, SIAM maintains a cautiously optimistic outlook for '22, supported by expectations of a normal monsoon, festive season
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