Permanent Magnet Q2 FY27 Results (NSE: PERMAGN)
Signal: Growth reaccelerated
The read
The operating inflection is clear: standalone EBITDA margin expanded to 24.6% from 14.1% a year ago and 18.9% in Q1FY27, while revenue accelerated 49% YoY to ₹72.46 Cr. EBITDA growth of 159% outpaced revenue growth by 110 percentage points as operating expenses rose only 31%, but the next proof point is whether higher EV demand and new-furnace utilisation can sustain margins through H2FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹72.46 Cr | 49% | N/A |
| Net profit | ₹9.98 Cr | 156% | |
| EPS | ₹11.61 | 156% | |
| EBIT margin | 24.6% |
P&L walk
Standalone revenue increased 49% YoY to ₹72.46 Cr, while EBITDA rose 159% to ₹17.81 Cr and margin expanded 1,048bps to 24.6%; management attributed the improvement to higher EV demand, smart-meter demand and better mix, with positive operating leverage from higher throughput.
Key positives
- Revenue from operations increased 49% YoY to ₹72.46 Cr, led by EV demand and a pick-up in domestic smart-meter demand.
- EBITDA rose 159% YoY to ₹17.81 Cr and margin expanded 1,048bps to 24.6%; EBITDA growth exceeded revenue growth by 110 percentage points.
- Operating leverage is supported by total operating expenses growing 31% YoY versus 49% revenue growth, while depreciation grew 25% and finance cost grew 88%.
- EPS increased 156% YoY to ₹11.61, tracking the 156% PAT growth and passing the PAT-to-EPS quality check cleanly.
Key concerns
- Alloys capacity was not fully utilised because of teething issues at the new furnace; the margin trajectory depends partly on the stated H2FY27 utilisation improvement.
- Relays pilot supplies are expected only in H2FY27, with material ramp-up deferred to FY28, leaving the contribution timing uncertain.
- Quantum Magnetics Phase 2 capex was commissioned in October 2026, but customer approval is only expected to start soon, so near-term monetisation remains execution-dependent.
- Finance cost increased 88% YoY to ₹0.81 Cr, although the absolute amount remained modest relative to operating profit.
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