Permanent Magnet Q2 FY27 Earnings Call — Analysis (NSE: PERMAGN)
Permanent Magnets reported sharp growth in Q2FY27 as revenue grew 49% YoY to ₹72.5 Cr and EBITDA margins expanded to 25% driven by a strong rebound in Western EV export demand.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹72.5 Cr ( +49% YoY ) . New guidance — FY27 fy27 revenue growth 20% to 30% . New story: Alloys Division Teething and Ramp-up .
Results
Revenue reached ₹72.5 Cr (+49% YoY); EBITDA stood at ₹17.8 Cr (+159% YoY) with EBITDA margin expanding to 25%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹72.5 Cr | +49% | yoy · Q2FY27 |
| EBITDA | ₹17.8 Cr | +159% | yoy · Q2FY27 |
| EBITDA Margin | 25% | +1100bps | yoy · Q2FY27 · vs 14% in Q2FY26 |
| Automotive Sales | ₹24 Cr | +128.57% | yoy · Q2FY27 · vs ₹10.5 Cr in Q2FY26 |
| Automotive Sales | ₹24 Cr | +60% | sequential · Q2FY27 · vs ₹15 Cr in Q1FY27 |
| Alloys Division Revenue | ₹12 Cr | none · H1FY27 · First half FY27 | |
| Domestic Revenue Share | 51% | none · Q2FY27 · of Q2FY27 revenue | |
| Export Revenue Share | 49% | none · Q2FY27 · of Q2FY27 revenue |
Guidance
Management guided for 20-30% full-year FY27 revenue growth with EBITDA margins of 20-25%, while pushing commercial ramp-up of the relays business to FY28.
What management committed to
- [Permanent Magnets] expects total overall revenue growth to be somewhere between 20% to 30% in FY27. — 20% to 30%, FY27
- [Permanent Magnets] expects full-year EBITDA margin to be in the range of 20% to 25% for FY27. — 20% to 25%, FY27
- [Permanent Magnets] expects the total turnover coming out of the [alloys division] to be somewhere in the range of INR40 to INR50 crores in FY27. — INR40 to INR50 crores, FY27
- [Permanent Magnets] expects commercial ramp-up of the [relays project] to happen in FY28. — FY28
- [Quantum Magnetics] Phase 2 commercial ramp-up should happen in Financial Year 27-28. — FY28
- [Permanent Magnets] expects building capex of about INR30 crores for consolidating all operations into a single facility over the next 2 years. — INR30 crores, FY29
Key themes
EV export rebound and capex project commercialisation
How the narrative shifted
- EV Export Demand Recovery: Export demand from Western EV OEMs for current sensing modules has sharply rebounded, driving operating leverage and rich margin mix in H1 and committed through H2FY27.
- Alloys Division Teething and Ramp-up: Furnace operational breakdowns caused initial H1 delays and FY27 guidance moderation to ₹40-50 Cr, but technical fixes are complete with H2 ramp underway.
- Relay Commercialisation Deferral: Extended testing iterations and custom OEM specifications pushed commercial revenue realization from H2FY27 to FY28.
- Quantum Magnetics Localization Play: Phase 2 commissioning completes block processing capability under ECMS PLI approval, setting up customer qualification in H2 and commercial scale-up in FY28.
- Transition to Standard Modules: Company is transitioning from bespoke custom components toward higher-scalability standardized PML-designed current sensing modules sold globally.
Operational commentary
- EV customer export demand rebounded sharply, with management confirming firm orders across Western OEM programs for H2FY27.
- Quantum Magnetics Phase 2 capex covering block cutting, machining, and surface treatment was commissioned in October 2026, commencing customer approval processes.
- Alloys division experienced initial furnace breakdown issues in H1FY27 which have now been resolved, targeting better capacity utilization in H2FY27.
- Relays project commercial ramp-up deferred to FY28 due to customer design testing iterations, though pilot supplies are planned for H2FY27.
- Approved under the MeitY ECMS PLI scheme offering a 25% incentive on capex.
- Consolidation of multi-plant rented operations into a unified owned facility ongoing with a 2-year horizon; building capex estimated at ~₹30 Cr on land already acquired for ~₹25 Cr.
Analyst Q&A
Q. What drove the sudden revival in EV demand and is it sustainable into FY28?
Demand picked up across 2-3 Western customers for current sensing inverter components; visibility and orders are firm through H2FY27, but no concrete FY28 forecast is available yet.
Q. Why did alloys division revenue guidance get cut from ₹70-80 Cr to ₹40-50 Cr for FY27?
The newly installed furnace faced breakdown and technical teething issues causing lost sales and delay penalties; issues are now resolved and orders have been pushed back rather than cancelled.
Q. Will Quantum Magnetics face raw material constraints due to Chinese rare earth export restrictions?
Management acknowledged the complication of importing blocks but stated they have proprietary solutions they decline to disclose publicly.
Q. Are commercial off-take agreements signed for the relays division?
In-principle agreements exist, but formal binding buyer-seller agreements will be signed only post pilot lot approvals.
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