Poojaa Precision Engg. Ltd (PPEL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Poojaa Precision Engineering Limited H1 FY27 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 the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shreyas Samant from Stellar Investor Relations Advisors. Thank you, and over to you, sir.
Shreyas Samant (Stellar Investor Relations Advisors): Thank you. Good morning, everyone, and thank you for joining us today. I have with us today the senior management team of Poojaa Precision Engineering Limited: CA Dushyant Agrawal, Promoter; Sanket Anil Kulkarni, Managing Director; Radheya Agrawal, Promoter and CFO, who will represent Poojaa Precision Engineering Limited on the call. The management will be sharing the operating and financial highlights for the half year ended September 30, 2026, followed by a question-and-answer session. Please note, this call may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinions, and expectations as of today. These statements are not a guarantee of the company's future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made. I now hand over the conference to Mr. Sanket Anil Kulkarni. Thank you, and over to you, sir.
Sanket Anil Kulkarni (Poojaa Precision Engineering Limited): Yeah. Good morning, everyone, and a very warm welcome to all of you. It is my pleasure to welcome you all to the maiden earnings conference call of Poojaa Precision Engineering Limited. I hope you have got an opportunity to review our investors presentation and the financial results, which are available on the stock exchange, as well as on our company's website. Speaking to all of you today for the very first time as a publicly listed company is truly special milestone for all of us. As many of you are looking at our business closely for the first time, I want to give you a complete panoramic view of Poojaa Precision Engineering Limited: what we do, why OEMs choose us, how we operate across end markets, and where we plan to take this company over the coming years. Starting with our core, Poojaa Precision is a highly, is a high-precision engineering and manufacturing partner. Simply put, when the critical industrial need complex parts, high-tolerance components that cannot afford to fail, they turn to us. Our story began in 1992 as a modest manual casting manufacturer. Over the past three decades, we have
Sanket Anil Kulkarni (Poojaa Precision Engineering Limited): transformed Pooja Precision from a basic foundry setup into an advanced technology-driven precision engineering powerhouse. We have modernized our facilities to handle the state-of-the-art gravity die casting, low-pressure die casting, and high-pressure die casting components and high precision tooling technologies. What truly sets us apart is our value chain integration. We do not operate as a job work foundry. Instead, we provide an end-to-end solution ecosystem. We start with co-engineering and design where we engage the OEM engineering teams at the concept stage, translating the customer's blueprint into optimized lightweight part geometries. We have our in-house tooling and simulation software using internal tool design and mold flow simulation softwares. We manufacture high durability dies in-house, cutting development lead time and maintaining full IP control. Additionally, we have advanced alloy castings utilized for LPDC and HPDC technology. We cast dense, defect-free aluminum alloys built to withstand extreme pressure and heat. On top of that, we also do micro-tolerance precision machining. Our multi-axis CNC machines machining center executes tight dimensional tolerance, finishing complex surfaces to exact client specification. We focus on quality assurance and testing. Our components undergo CMM inspection, spectro analysis, radiographic testing, and pressure leak testing before delivery as ready-to-use assembly units. We operate multiple units across strategic industrial hub in Pune, ensuring high operational flexibility and proximity to key OEM's assembly lines. Our current installed capacity stands at approximately 13,800 metric tons for melting and 6,000 metric tons for casting and finishing, which is expected to increase to 28,800 metric tons and 12,600 metric tons respectively by financial year '28, nearly doubling our overall capacity. Our strong technical execution has enabled us to build a long-standing relationship with the leading Tier 1 OEMs in India and globally while continuously expanding our customer base from 39 in FY24 to 58 in first half of FY27, reflecting our growing reach across customers and sectors. I would like to highlight that order books in our is our strength. As we speak today, we are backed by a robust order booking of almost 1,180 crores, giving us strong revenue visibility over the coming financial year. A key cornerstone for our strategy is revenue de-risking through diversification. We have built a broad based portfolio across automotive, non-automotive, and EV applications catering to multiple industries and end market. In the automotive segment, we serve two-wheelers, three-wheelers, passenger vehicles, and commercial vehicle components, which includes intake manifolds, cylinder head, crankcases, and transmission housings. We are also expanding into EV applications, including motor housing and battery enclosures. Beyond automotive, our presence spans power and energy distribution, agriculture, defense, heavy engineering, and healthcare with products ranging from conductors, electrodes, insulators, switchgear housings, and precision diagnostic equipment components. This diversified portfolio reduces our dependence on any single segment and enables us to tap growth opportunities across multiple industries. I would like to talk about our strategic road map which which centers on clear deliverables. First, our diversified strategy. We are strengthening our presence in the power and energy sector with a long-term target of achieving a balance of 50-50 revenue mix considering automotive and non-automotive sector. In H1 FY27, non-automotive revenue grew by 194% year-on-year to 53 Cr, contributing 25% of sales, up from 15% in H1 FY26, while automotive contributed to 63% of the sales. Second, our growth tar-
Sanket Anil Kulkarni (Poojaa Precision Engineering Limited): Supported by our capacity expansion and order books, we are targeting 50% revenue growth in FY27 and expect to grow at the rate of around 30 to 35% for the coming 2 years with a clear objective of achieving 1,000 crores in annual turnover by FY30. Third, global footprint, accelerating direct exports to tier 1 OEMs across North America and Europe to capture the global China plus one manufacturing transition. With that, I conclude my remarks and handover the floor to our CFO, Mr. Bhavya Agarwal to take you through our financial performance and metrics. Thank you. Thank you.
Bhavya Agarwal (Poojaa Precision Engineering Limited): Thank you, Sanket sir. Very good morning to all the participants. Over the last three fiscal years, our company has delivered exceptional compounding growth across all top-line and bottom-line metrics. Revenue from operations grew from 174 crores in FY24 to 222 crores in FY25, and reached 294 crores in FY26, delivering a revenue CAGR of 30%. Coming to EBITDA, it expanded from 28 crores in FY24 to 37 crores in FY25, and reached 55 crores in FY26, delivering an EBITDA CAGR of 41.3%. This expanded by 300 basis points from 15.18, 15.8% in FY24 to 18.7% in FY26 on the top line. Moving to the net profit, which grew from 16 crores in FY24 to 22 crores in FY25, and reached 34 crores in FY26, reflecting a PAT CAGR of 44.2% year-on-year. On the top line, the PAT margin expanded from 9.3% in FY24 to 11.4% in FY26. Comparing our first half-yearly of FY27 with first half-yearly of FY26, revenue from operations stood at 210 crores in first half of FY27, compared to 125 crores in first half of FY26, reflecting a year-on-year growth of 68%. Historically, our H1 revenue has contributed around 43% to 47% of our full year revenue. Operating EBITDA and margins came in at 40 crores in first half of FY27 versus 23 crores in first half of FY26, giving a year-on-year growth of 73% with EBITDA margin expanding to 19%. Profit after tax stood at 25 crores in first half of FY27 versus 13 crores in first half of FY26, a year-on-year growth of 88% with PAT margin reaching 12% on the top line. We continue to deliver strong capital returns with an ROE of 25% in H1 of FY27. In spite of raising 50% of our capital in August, our ROE is strong at 25%, supported by robust balance sheet with a low debt to equity ratio of 0.08x and fixed asset turnover of 4x reflecting efficient asset utilization and strong revenue generation. With a strong balance sheet, a healthy order book of 1,180 crores, and expanding market opportunities, we are well positioned to sustain our growth momentum. Accordingly, we expect to deliver a revenue CAGR of around 30 to 35% over the coming years. We thank you all for listening affirmatively. I now hand the call back to the operator to open the floor for questions. Thank you very much. Thank you very much.
Moderator: Thank you, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the
Moderator: Q assembles.
Moderator: Our first question comes from the line of Prithvi with Abakkus Investment Managers. Please go ahead.
Prithvi (Abakkus Investment Managers): Hello, sir. Congratulations on the first concall. Our question is related to order book. So, we currently have an order book of 1,180 crores. Can you just provide a bit more information and detail on how this order book is going to be spread across H2, FY27, FY28, and FY29? And just a bit more in the definition of the order book itself. Thank you.
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