Poojaa Precision Engg. Q2 FY27 Earnings Call — Analysis (BSE: 544844)
Poojaa Precision reported 68% YoY revenue growth in H1FY27 to ₹210 Cr with an 18.9% EBITDA margin, supported by a ₹1,180 Cr order book and capacity expansion targeting ₹1,000 Cr revenue by FY30.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
H1FY27 Revenue from Operations ₹210 Cr ( +68% YoY ) . New guidance — FY27 fy27 total revenue growth 50% . New story: Revenue Diversification into Non-Auto and Power .
Results
H1FY27 revenue surged 68% YoY to ₹210 Cr, EBITDA increased 73% to ₹40 Cr (19.0% margin), and PAT grew 88% to ₹25 Cr (12.0% margin).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹210 Cr | +68% | yoy · H1FY27 · vs ₹125 Cr in H1FY26 |
| Operating EBITDA | ₹40 Cr | +73% | yoy · H1FY27 · vs ₹23 Cr in H1FY26 |
| EBITDA Margin | 19% | +60bps | yoy · H1FY27 · vs ~18.4% in H1FY26 |
| Profit After Tax | ₹25 Cr | +88% | yoy · H1FY27 · vs ₹13 Cr in H1FY26 |
| PAT Margin | 12% | +160bps | yoy · H1FY27 · vs 10.4% in H1FY26 |
| Order Book | ₹1,180 Cr | point_in_time · Q2FY27 · Oct-26 | |
| Non-Auto Revenue | ₹53 Cr | +194% | yoy · H1FY27 · vs ~₹18 Cr in H1FY26; 25% of sales |
| Debt to Equity | 0.08x | point_in_time · H1FY27 · Sep-26 |
Guidance
Management guided ~50% revenue growth for FY27 and 30-35% CAGR over FY28-FY30 to achieve ₹1,000 Cr in annual turnover by FY30.
What management committed to
- [Poojaa Precision Engineering] expects to increase melting capacity to 28,800 metric tons and casting/finishing capacity to 12,600 metric tons by [FY28]. — 28,800 metric tons and 12,600 metric tons, FY28
- [Poojaa Precision Engineering] is targeting approximately 50% revenue growth in [FY27]. — 50%, FY27
- [Poojaa Precision Engineering] expects revenue of around ₹630 crores to ₹640 crores in [FY28]. — INR630 crores to INR640 crores, FY28
- [Poojaa Precision Engineering] expects annual revenue to reach around ₹800 crores to ₹820 crores in [FY29]. — INR800 crores and INR820 crores, FY29
- [Poojaa Precision Engineering] targets achieving ₹1,000 crores in annual turnover by [FY30]. — INR1,000 crores, FY30
- [Poojaa Precision Engineering] aims to achieve a 50:50 revenue mix between automotive and non-automotive sectors in [next 2 to 3 years]. — 50-50%, FY29
- [Poojaa Precision Engineering] plans to repay its entire outstanding loan by [H2FY27]. — entire loan, Q2FY27
Key themes
Capacity ramp-up and non-auto revenue diversification
How the narrative shifted
- Revenue Diversification into Non-Auto and Power: Management is actively transitioning from an auto-heavy foundry to a precision engineering supplier with 50% non-auto exposure, driven primarily by strong power and energy distribution demand.
- Pre-emptive Capacity Expansion: Company is doubling its melting and casting capacities ahead of customer demand, leveraging IPO proceeds to capture multi-year structural tailwinds in lightweighting and China+1.
- Raw Material Pass-Through Mechanism: Fluctuations in aluminum prices are insulated by standard contract pass-through clauses, ensuring top-line indexation without P&L margin risk.
- Long-Term Aerospace and Defense Qualification: Receipt of vendor code and prototype approvals from HAL and IAF initiates a 4-year qualification cycle for aerospace aluminum and magnesium castings.
Operational commentary
- Capacity expansion underway: Melting capacity expanding from 13,800 MT to 28,800 MT and casting/finishing from 6,000 MT to 12,600 MT by FY28 to double overall installed base.
- Current capacity utilization stands at ~82% on an expanded base of 610 tons/month (500 base + 110 tons from initial Unit 3 ramp-up).
- Process mix currently comprises 70% Gravity Die Casting (GDC), 25% Low-Pressure Die Casting (LPDC), and 5% High-Pressure Die Casting (HPDC).
- Customer base expanded to 58 clients in H1FY27 compared to 39 in FY24, gaining traction across Fortune 500 power distribution and Tier 1 automotive accounts.
- Received initial prototype vendor approvals from Hindustan Aeronautics Limited (HAL) and audit clearance from the Indian Air Force; production commercialization anticipated in ~4 years.
- Raw material indexing mechanism allows complete pass-through of aluminum price fluctuations to customers, insulating operational EBITDA.
Analyst Q&A
Q. Can management break down how the ₹1,180 Cr order book will execute across FY27, FY28, and FY29?
The order book is 52% auto and 48% non-auto. Execution is expected to drive ₹630-640 Cr revenue next year (FY28), ₹800-820 Cr the year after (FY29), and reach ₹1,000 Cr by FY30 at a 30-35% CAGR.
Q. Why did gross margins compress from 59% to 53% despite revenue growth?
Compression was due to a shift in product mix toward larger casting parts (50 kg to 80 kg vs previous 1-9 kg), which have higher raw material value content, though absolute and operational margins remain expanding.
Q. Could management disclose specific OEM and automobile client names?
Management stated non-disclosure agreements prevent naming specific OEMs on the call, describing them broadly as Fortune 500 companies.
Q. Will Unit 3 start-up cause margin dilution from under-absorbed fixed overheads?
Management indicated that all fixed costs for Unit 3 are already absorbed in the September figures, meaning future additions will predominantly carry variable costs and not dilute margins.
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