PPAP Automotive Ltd (PPAP)
🎯 Key Takeaways
- PPAP Automotive is transitioning from a traditional auto ancillary supplier to a strategic EV components player, evidenced by EV order book growth to ₹64.4 crores and new battery capacity investments.
- Revenue declined 10.4% QoQ to ₹156 in Q1FY27.
- ⚠️ 1) Regulatory delays in NCLT approval for the Avinya Batteries amalgamation could postpone operational synergies. 2) EV order book growth is concentra
- Market Cap
- ₹343
- P/E Ratio
- 7.4
- P/B Ratio
- 1.00
- ROE
- 13.6%
- ROCE
- 13.1%
- Debt/Equity
- 0.61
- Div Yield
- 0.62%
- Promoter
- 64.3%
📖 The Story
PPAP Automotive is transitioning from a traditional auto ancillary supplier to a strategic EV components player, evidenced by EV order book growth to ₹64.4 crores and new battery capacity investments. The company is in a high-growth phase driven by electric vehicle supply chain expansion, with PAT margin expansion and profitability improving from near-break-even levels in prior quarters.
📰 What's Happening
In Q1 FY27, PPAP Automotive reported consolidated revenue of ₹156.4 crores (+34.1% YoY) and PAT of ₹0.9 crores (+325% YoY), driven by EV orders and lifetime contracts worth ₹131 crores (+51.8% YoY). Management highlighted expansion into new plants in Noida, Chennai, and Gujarat, alongside EV battery capacity of 150 MWh annually. The company is consolidating its unlisted subsidiary Avinya Batteries Limited into the parent entity via a scheme of arrangement effective April 1, 2026, requiring shareholder approval at a virtual meeting on September 30, 2026. The merger involves no dilution or new share issuance, transferring assets and liabilities to PPAP Automotive. Shareholders must vote via e-voting from September 26–29, 2026, with NCLT approval required post-approval.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 137 | 139 | 175 | 156 |
| Operating Profit | 4 | 4 | 7 | 3 |
| OPM % | 2.9% | 2.7% | 4.3% | 2.1% |
| Net Profit | -0 | 0 | 45 | 1 |
| EPS | ₹-0.03 | ₹0.05 | ₹32.20 | ₹0.61 |
Revenue growth accelerated to ₹156.4 crores in Q1 FY27 (+34.1% YoY), reversing a sequential decline from ₹175 crores in Q3 FY26, with PAT turning positive at ₹0.9 crores after a ₹0.05 EPS loss in Q4 FY26. Operating margins improved to 2.1% from 2.7% in Q4 FY26, reflecting cost optimization amid scale. The PAT growth of 325% YoY and EV order book expansion to ₹64.4 crores underscore management's focus on high-margin EV supply chain opportunities, supported by new plant capacity and lifetime contracts.
🔮 Management Outlook & What's Next
Management has outlined a net-zero target by 2045 and confirmed 150 MWh annual battery capacity at new facilities. The company is actively expanding EV battery production capacity and securing lifetime contracts, signaling sustained investment in EV supply chain infrastructure. No forward guidance on revenue or margin targets was provided beyond the EV order book growth and capacity expansion announcements.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 14 | 14 | 14 | 14 |
| Reserves | 274 | 270 | 327 | 271 |
| Borrowings | 166 | 160 | 207 | 186 |
| Total Liabilities | 568 | 573 | 741 | 615 |
| Fixed Assets | 319 | 295 | 306 | 302 |
| Investments | 44 | 41 | 96 | 44 |
| Total Assets | 568 | 573 | 741 | 615 |
The balance sheet shows stable equity of ₹14 lakhs and reserves growing from ₹274 lakhs (March 2025) to ₹327 lakhs (March 2026), indicating retained earnings from recent profitability. Borrowings increased to ₹207 lakhs from ₹186 lakhs (March 2026), suggesting modest capital expenditure financing, though the debt-to-equity ratio remains low at 0.58. Total assets rose to ₹741 lakhs (March 2026) from ₹615 lakhs (March 2026), reflecting asset growth from operational expansion.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +52 |
| Investing | -35 |
| Financing | -17 |
| Net Cash Flow | -0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 64.5% | 64.5% | 64.5% | 64.3% |
| FII | 5.7% | 5.7% | 5.7% | 5.8% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 20.8% | 20.8% | 20.6% | 20.9% |
| # Shareholders | 15,752 | 15,450 | 15,228 | 15,487 |
Promoter holding remains stable at 64.48% (Q1 FY27), with no dilution from the Avinya Batteries merger. FII holding increased slightly to 5.84% in Q1 FY27 from 5.66% in Q4 FY26, while DII remains at 0%. Public shareholding rose to 20.85% from 20.61%, and the number of shareholders grew to 15,499, indicating retail investor interest. No pledging or significant exit signals were observed.
⚖️ Peer Comparison — Auto Ancillaries
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| MOTHERSON | 1.72 L Cr | 39.3 | 13.9% | — | 0.39 |
| BOSCHLTD | 1.39 L Cr | 58.9 | 21.7% | — | 0.00 |
| UNOMINDA | 67,968 | 56.5 | 19.3% | — | 0.37 |
| SONACOMS | 50,152 | 72.0 | 15.2% | — | 0.04 |
| ENDURANCE | 37,982 | 39.2 | 17.3% | — | 0.15 |
| EXIDEIND | 35,024 | 37.6 | 9.8% | — | 0.08 |
| SANSERA | 27,796 | 79.5 | 14.3% | — | 0.15 |
| CRAFTSMAN | 27,589 | 52.5 | 14.7% | — | 1.02 |
| ZFCVINDIA | 26,550 | 10.7 | 18.3% | — | 0.00 |
| SUNDRMFAST | 24,520 | 40.1 | 17.4% | — | 0.14 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Regulatory delays in NCLT approval for the Avinya Batteries amalgamation could postpone operational synergies. 2) EV order book growth is concentrated in new contracts, with no long-term visibility beyond ₹64.4 crores in booked orders. 3) Operating margins remain thin at 2.1% in Q1 FY27, making profitability vulnerable to input cost pressures or demand softness in commercial vehicles.
📋 Recent Filings
- Announcement2026-09-25PPAP Automotive announced that its trading window closes on 1 October 2026 until 48 hours after Q2 results, preventing insiders from trading shares du…
- 🟡 voting results2026-09-18PPAP Automotive Limited announced voting results for its 31st Annual General Meeting held on 18 September 2026, confirming all seven resolutions passe…
- 🟡 Board Meeting2026-09-18PPAP Automotive held its 31st AGM on 18 September 2026 via video conference, approving a final dividend of Rs. 1.50 per share (15% on Rs. 10 face valu…
- 🔴 Corporate Action2026-08-29PPAP Automotive announced a Scheme of Arrangement to amalgamate its unlisted subsidiary Avinya Batteries Limited into the parent company effective Apr…
- 🔴 Corporate Action2026-08-29PPAP Automotive announced a scheme of amalgamation where its wholly-owned subsidiary Avinya Batteries will merge into PPAP effective April 1, 2026. Th…
- 🔴 Corporate Action2026-08-29PPAP Automotive announced a scheme of arrangement to amalgamate Avinya Batteries Limited with PPAP Automotive Limited, requiring shareholder approval …
- 🔴 annual report2026-08-24PPAP Automotive Limited announced its 31st AGM scheduled for 18 September 2026 via video conferencing, where shareholders will vote on key resolutions…
- Announcement2026-08-10PPAP Automotive announced that its earnings conference call for the quarter ended June 30, 2026, held on August 10, 2026, is now available on its webs…
- 🔴 Financial Results2026-08-08PPAP Automotive reported consolidated revenue of **₹156.4 crores** (+34.1% YoY) and PAT of **₹0.9 crores** (+325% YoY) for Q1 FY27, driven by EV order…
- 🟡 Board Meeting2026-08-07PPAP Automotive's board approved unaudited standalone and consolidated financial results for Q1 June 2026 during a meeting held on 7 August 2026. The …
🧠 Analyst's Read
PPAP Automotive is executing a clear strategic shift toward EV components with improving profitability from new contracts, but execution risks remain tied to regulatory approvals and order book sustainability. Investors should monitor NCLT clearance timelines and the pace of EV order inflows in upcoming quarters.
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 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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