PPAP Automotive Limited (PPAP)

Automobile and Auto Components · Auto Components · NSE · Updated 15 July 2026

₹338.02 ↑ 36.17% (1Y)

🎯 Key Takeaways

PPAP Automotive is undergoing a strategic transformation to reposition itself as a focused automotive components player, marked by the divestment of non-core businesses, restructuring of its tooling and battery segments, and efforts to improve profitability. The company is transitioning from a period of losses in its battery business to anticipated profitability in FY27, while leveraging growth in automotive, aftermarket, and industrial segments driven by new model launches from key OEMs like Honda, Tata, and Mahindra.
Revenue declined 3.9% QoQ to ₹139 in Q3FY25.
⚠️ Geopolitical volatility and supply chain disruptions remain key concerns, as explicitly cited by management for deferring FY27 guidance, which could i

Market Cap

₹304

P/E Ratio

-83.5

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

PPAP Automotive is undergoing a strategic transformation to reposition itself as a focused automotive components player, marked by the divestment of non-core businesses, restructuring of its tooling and battery segments, and efforts to improve profitability. The company is transitioning from a period of losses in its battery business to anticipated profitability in FY27, while leveraging growth in automotive, aftermarket, and industrial segments driven by new model launches from key OEMs like Honda, Tata, and Mahindra. Management is emphasizing operational efficiency, capacity utilization, and capital reallocation to strengthen financial flexibility.

📰 What's Happening

In the latest filings, PPAP Automotive completed the divestment of PPAP Tokai India Rubber for INR100 crores, reducing net debt to INR103 crores, and announced the hiving off of its tooling business into Meraki Precision Tool Engineering Limited by Q2 FY27, alongside the merger of Avinya Batteries Limited with PPAP by Q4 FY27. The company also approved a final dividend of INR1.50 per share for FY26 and reappointed Chairman Ajay Kumar Jain until 2029. Recent board actions include the appointment of Meeta Makhan as an Independent Director effective June 25, 2026, with a two-year term, enhancing governance oversight. Management highlighted sequential revenue growth, 78% capacity utilization, and operational recovery as drivers of EBITDA expansion, with profitability expected in the battery business by FY27.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	132	116	148	122	136	123	145	139
Operating Profit	9	7	13	10	12	12	17	14
OPM %	6.7%	5.4%	8.2%	8.0%	8.5%	9.6%	11.3%	10.1%
Net Profit	-2	-3	1	-3	-8	0	3	2
EPS	₹-1.63	₹-1.96	₹0.39	₹-1.91	₹-5.83	₹0.07	₹2.04	₹1.14

The company has shown signs of operational recovery and revenue stabilization, with Q4 FY26 revenue at INR175.5 crores (25.7% QoQ), contributing to an 18.6% YoY increase in FY26 revenue to INR567 crores. EBITDA rose 12.9% YoY to INR16.9 crores, supported by improved utilization and cost discipline, despite persistent losses in the battery segment, which narrowed to just INR40 lakhs in Q4. While earlier quarters showed volatility — including losses in Q4 FY24 and Q3 FY24 — recent performance reflects a turnaround in core segments. The company has reduced net debt significantly through asset sales, though profitability remains sensitive to macro and supply chain conditions, prompting the deferral of FY27 guidance.

🔮 Management Outlook & What's Next

Management expects profitability in the battery business to be achieved by FY27, with sequential growth anticipated across automotive parts, aftermarket (which grew 36% YoY), and industrial segments. Capacity utilization is projected to improve to 80-82% in FY27, underpinning margin expansion. New model launches from Honda, Tata, and Mahindra are expected to drive demand in the automotive segment. However, FY27 guidance has been deferred due to geopolitical volatility and supply chain uncertainties, with management indicating that formal guidance will be provided in the Q1 FY27 earnings announcement.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Auto Components

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Samvardhana Motherson International Limited	1.37 L Cr	30.6	—	—	—
Bosch Limited	1.11 L Cr	55.0	—	—	—
Bharat Forge Limited	91,463	99.6	—	—	—
UNO Minda Limited	64,785	66.7	—	—	—
Schaeffler India Limited	62,984	67.0	—	—	—
Tube Investments of India Limited	55,168	47.4	—	—	—
MRF Limited	54,558	31.1	—	—	—
Balkrishna Industries Limited	41,530	23.4	—	—	—
Endurance Technologies Limited	35,848	44.7	—	—	—
Sona BLW Precision Forgings Limited	35,667	58.5	—	—	—

🔗 Peer Stock Analyses

MOTHERSON BOSCHLTD BHARATFORG UNOMINDA SCHAEFFLER

⚠️ Risk Factors

1. Geopolitical volatility and supply chain disruptions remain key concerns, as explicitly cited by management for deferring FY27 guidance, which could impact order intake and margins. 2. The battery business, while showing narrowing losses, is still not profitable and forms part of a complex merger with Avinya Batteries, introducing execution and integration risks. 3. The tooling business hive-off to Meraki Precision Tool Engineering is targeted for Q2 FY27 but depends on regulatory and operational readiness, with delays potentially affecting cost-saving expectations. 4. Margin pressure could persist if capacity utilization fails to improve beyond current levels, especially amid competitive pricing in the automotive components space.

📋 Recent Filings

🧠 Analyst's Read

PPAP Automotive is in the midst of a structural transformation aimed at improving profitability and focus, with recent divestments, restructuring, and leadership enhancements supporting a more streamlined operations model. Investors should monitor the successful execution of the tooling hive-off and Avinya Batteries merger, the pace of margin improvement from capacity utilization gains, and the timely release of FY27 guidance once macro conditions stabilize. The company’s ability to convert operational recovery into sustainable earnings will be critical for long-term value creation.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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