Pricol (PRICOLLTD) — concall transcript

📢 Key Event
Pricol reported strong revenue growth but faced EBITDA margin pressure due to external cost increases, with plans to recover margins by Q2-Q3 FY27 and execute a demerger to enhance growth in core segments.

🔄 What Changed
EBITDA margin declined to 11.41% from previous period due to polymer, freight, wage, and geopolitical cost pressures; margin recovery expected in Q2-Q3 FY27; demerger of driver information system business announced to improve capital structure and growth focus.

🔮 What's Next
Target 12.5-13% blended EBITDA margins long-term; margin recovery in Q2-Q3 FY27; Rs. 8000 crores revenue target by FY31; 700 crores total CAPEX with 150-180 crores for DICVS and 120 crores for ACFMS; polymer capacity to reach 2000 crores turnover; 25% YoY growth in ACFMS and DICVS; two-wheeler growth at 28% vs industry 23%; TFTPenetration to double in 2-3 years; disc brakes revenue from FY28; no M&A planned in next year; demerger completion in 12-18 months.

💡 Investor Takeaway
Shareholders should note that while revenue growth is strong, near-term margin pressure from external costs is temporary and expected to ease, with structural improvements via demerger and capacity expansion supporting long-term margin recovery and growth targets.

Pricol Ltd reported 23.46% YoY revenue growth in Q1 FY27 driven by new products and industry expansion, but EBITDA margin fell to 11.41% due to polymer price hikes, freight costs, wage increases, and West Asia geopolitical risks. Management expects margin recovery in Q2-Q3 FY27 and targets 12.5-13% long-term EBITDA margins. A proposed demerger of the driver information system business aims to attract specialized investors and improve growth flexibility in ACFMS and polymer segments. Cost pressures are being partially offset through customer indexing, with capacity expansion underway to reach 2000 crores polymer turnover.

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About Pricol Ltd (PRICOLLTD)

Automobile and Auto Components · Auto Ancillaries · Listed on BSE

Market Cap: ₹9,287.37 Cr P/E: 34.7 ROE: 21.4% ROCE: 23.7% Div Yield: 0.26%

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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