Pricol Limited conducted its Q2 FY2027 Earnings Conference Call on November 5, 2026. The company reported revenue from operations of ₹1334.02 crore for the second quarter, achieving an EBITDA margin of 11.82%. Management discussed ongoing headwinds such as rising input costs due to currency fluctuations, bare PCB costs, and memory cost increases. The company also provided insights into segment-wise performance and future strategies, including capacity expansion plans.
Pricol Limited Q2 FY2027 Earnings Conference Call Highlights
Pricol Limited hosted its Q2 and H1 FY2027 Earnings Conference Call on November 5, 2026, providing an update on its financial performance and strategic outlook. The call, hosted by Valorem Advisors, featured key management personnel including Mr. P.M. Ganesh (CEO), Mr. Siddharth Manoharan (Group Executive Director), Ms. Madhura Mohan (Executive Director), and Mr. Priyadarsi Bastia (CFO).
Financial Performance
During the second quarter of FY2027, Pricol reported revenue from operations of ₹1334.02 crore, with an EBITDA margin of 11.82%. For the first half of FY2027 (H1 FY2027), the company’s operations stood at ₹2417.60 crore with an EBITDA margin of 11.64%. Profit After Tax (PAT) for the period was ₹85.21 crore, with a margin of 6.39%. Quarter-on-quarter, revenue growth was 35.03% and EBITDA growth was 27.87%. On a H1 basis compared to the previous year, growth was 29.59% with EBITDA growth of 24.95%.
Key Growth Drivers and Headwinds
The company attributed its strong performance to robust domestic demand, particularly in the two-wheeler segment which saw a record 35% growth. New product launches, such as the Bajaj Pulsar with new TFT clusters, also contributed to value addition. Management highlighted several headwinds impacting the business, including the appreciation of the US dollar against the rupee, leading to rising material costs due to significant import content. Increases in bare PCB costs, attributed to the West Asia crisis, and memory cost increases due to AI disruptions were also cited. These factors are expected to persist for a few more quarters.
Segmental Performance and Outlook
While the company reported overall growth of 35% in Q2 FY2027, all three divisions – DIS, ACFMS, and the plastic business – saw similar levels of growth. The ACFMS division’s top driver is the fuel pump business for two-wheeler applications, complemented by exports of large water pumps to customers like Caterpillar. The plastic business is focusing on capacity expansion, with a budgeted CAPEX of ₹350 crore for the P3L entity over the next six quarters. Management anticipates that the real growth for this segment will materialize from FY2028 onwards.
Raw Material Cost and Pass-Through
Pricol has indexed raw material and FOREX pass-through with its customers on a quarterly basis. However, recent abnormal increases in costs, particularly for bare PCBs and memory, along with rising labor costs, are currently under discussion with customers. The company is working towards recovering these first-time cost increases but is uncertain about a 100% recovery in the immediate future. The estimated impact on EBITDA at an overall level is projected to be between 1% to 2%.
Demerger Process Update
The demerger process is ongoing, with an application submitted to the NCLT. The company expects final orders in a couple of quarters. Internally, the operationalization and divisionalization of the company into DICVS and ACFMS divisions have started and are expected to be completed within the next six months, with full operationalization planned from April 1, 2027.
Source: BSE
