* PPAP Automotive Limited released the transcript of its earnings conference call held on 14th November 2025, discussing the financial results for the quarter and half year ended 30th September 2025. * For the first half of financial year 2026 (H1 FY26), consolidated revenue from operations stood at ₹253.6 crores, a decline of 5.2% year-on-year, primarily due to subdued offtake from key automotive customers and delayed production startups for new programs. * Consolidated EBITDA for H1 FY26 was ₹22 crores, down 21.9% year-on-year, attributed to lower asset utilization and under-absorption of fixed costs. * The company reported a consolidated PAT loss of ₹2.3 crores for H1 FY26, largely due to lower operating leverage and a ₹2.1 crores loss from the battery business due to delayed customer approvals and sales. * Capacity utilization for the part business was 65%, tool business 85%, and lithium-ion battery pack facility only 5% in H1 FY26. * During Q2 FY26, PPAP secured lifetime orders worth ₹621 crores, bringing the new order book inflow for H1 FY26 to ₹707 crores (including ₹16 crores from EV programs). The total lifetime order book now stands at ₹4,171 crores, providing long-term revenue visibility. * The company commenced supplies for new vehicles launched by marquee customers, including Tata Altroz, Maruti Victoris, and Vinfast VF6. * Management expressed a more positive outlook for the automotive industry in the second half of the year, supported by festive demand, improving rural sentiment, and policy measures. * New projects, including Tata Sierra (production starting November 2025), Maruti Suzuki e Vitara (full production in Q3 FY26), and Renault Duster (launch in Q4 FY26), are expected to drive improved capacity utilization and financial performance. * The Aftermarket business (Elpis brand) grew 37% year-on-year in Q2 and is expected to contribute about 10% of consolidated revenues in the next two years. * The Commercial Tool Room business (Meraki brand) has an order book of 138 molds worth ₹30 crores and is on track for 20%+ growth this year, with plans to operate as an independent company, Meraki Precision Tool Engineering Limited, from Q4 FY26. * The Industrial Products division anticipates multifold growth this year, backed by strong domestic and export traction. * The Battery division (Avinya Batteries) expects sales to improve in H2 FY26 and a reduction in losses, with ₹15 crores in quarterly sales needed for operational breakeven. * For the full financial year 2026, the company provides guidance of consolidated revenue in the range of ₹575 crores to ₹600 crores, EBITDA in the range of ₹60 crores to ₹65 crores, and PAT in the range of ₹10 crores to ₹12 crores. * H2 FY26 capacity utilization is expected to be between 75% to 80%.
