Permanent Magnets Ltd (PERMAGN) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Permanent Magnets Limited Q2 and H1 FY '27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Sanyam Pokharna from TIL Advisors. Thank you, and over to you, sir.
Sanyam Pokharna (TIL Advisors): Thank you, Iqra. Good afternoon, everyone. We appreciate you all taking out the time to join us today on a Saturday for this call. The press release for quarter 2 FY '27 has already been uploaded on the stock exchange. To take us through today's results, we have with us from the management team, Mr. Sharad Taparia, Managing Director; and Mr. Ayush Jain, Chief Financial Officer. We will begin with a brief overview of the quarter and half year from Mr. Taparia, followed by the Q&A session. Please note that any forward-looking statements made during this call must be viewed in conjunction with the risks and uncertainties that we face. These risk factors have been outlined in our annual report. With that, I would now like to hand over the call to Mr. Taparia. Over to you, sir.
Sharad Taparia (Permanent Magnets Ltd): Yeah. Thank you, Sanyam. Good afternoon, everyone, and thank you for joining us today for the Permanent Magnets Limited quarter 2 and first half of '27 earnings conference call. We have reported a healthy financial performance in quarter 2 across key parameters. Stand-alone revenue from operations for the quarter stood at INR 72.5 crores, an increase of 49% year-on-year. Good demand in our EV segment, where supplies have picked up, drove this growth. The demand from our customers in the West is healthy, and based on current projections, we expect EV demand to remain at similar levels for the rest of the financial year.
Sharad Taparia (Permanent Magnets Ltd): Our domestic smart meter business has also picked up during the quarter. EBITDA for the quarter stood at Rs 17.8 crores, an increase of 159% year-on-year, and EBITDA margin improved to 25% from 14% in quarter two of last year and 19% in quarter one, financial year '27. The margin improvement both on sequential and year-on-year basis came from a better product mix due to higher EV demand and positive operating leverage from higher business throughput. Now, on the project front, in the alloys division, revenue for the first half of this year increased significantly compared to the first half of the last year. However, we could not utilize the full capacity of the new furnace due to some teething issues. These issues have since been resolved and we expect better utilization of the new furnace capacity in the second half of financial year '27. On the relays project, we expect to make some pilot supplies in the second half of this year. However, commercial lamp ramp-up will now move to the financial year '28. We remain in constant engagement with domestic OEMs on product approvals and commercialization of the relays business segment. For Quantum Magnetics, the phase two capex covering block cutting, machining, and surface treatment was commissioned in October in line with the quarter three timeline we shared earlier. We expect the product approval process to start soon. Looking ahead, our focus for the rest of the year is on improving utilization in the alloys division, starting pilot supplies in relays, and starting product approvals in Quantum Magnetics. With these updates, I would now like to open the floor for any questions. Thank you.
Moderator: Thank you very much, sir. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. Now, we will wait for a moment while the question queue assembles. The first question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead.
Ankit Gupta (Bamboo Capital): Yeah. Thanks for the opportunity and congratulations for a great set of numbers after a long time. Sir, on the EV side, you know, it has come as a surprise to us, you know, given how has been our outlook on the EV side. So, what has changed in this quarter which has led to some such a significant, you know, turnaround in the EV business? If you can talk about that. And you have also spoken about the demand sustaining, given the forecast that we have got from our customer for the rest of the year. So, if we can talk about what is what has changed in the demand and how do you see this demand sustaining, not just in this financial year, but for FY '28 also. And on electricity meters also, you know, smart meters also you have talked about, you know, demand reversal. So, both the segments if you can talk about. First, we can start with EV and then go to the smart meters.
Sharad Taparia (Permanent Magnets Ltd): Yeah. Our customers had higher demand, particularly from export market, and that is the main reason why we were able to increase the sales for EV applications in this quarter. And based on their current forecast what they have given us, this seems to be remaining at the at similar levels in the next half of this year also. For FY '28, right now we don't have any forecast, any specific forecast from them, but
Sharad Taparia (Permanent Magnets Ltd): as long as that it should remain that similar level This is regarding the EV business and the second question what you asked about energy meter business. For energy meter business, we are depending on a select few customers to whom to whom our our product contributes much more towards the revenue and those customers have increased demand in recent times. So, it has increased. It has not increased significantly, but it has increased in this first half of this financial year.
Ankit Gupta (Bamboo Capital): Sure and any views on the sustainability of this demand on smart meter front?
Sharad Taparia (Permanent Magnets Ltd): It is expected to remain similar only as per our today's information that we have. It depends a lot on the installations being done by the utilities and sometimes the installations become slower and therefore the demand goes down. But right now what we are expecting is at similar levels.
Ankit Gupta (Bamboo Capital): Sure, sir. And sir, the second question was on you know given how things are currently on the EVs, smart meters and relays which is expected to ramp up in FY '28 and you know alloys also will be getting the benefit of the new line coming for operating for the full year in FY '28 itself. So, what kind of revenues and margins are we looking for in FY '28 given you know EV demand is back and both this segment along with smart meter also is expected to do well for us?
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