Pricol Limited — Call Transcript 2025

Nov 11, 2025

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PL/SEC/TGT/2025-2026/096

Tuesday, 11[th] November 2025

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Listing Department Corporate Relationship Department
National Stock Exchange of India Limited BSE Limited
“Exchange Plaza’, C-1, Block G 1 [st] Floor, New Trading Ring
Bandra-Kurla Complex, Rotunda Building, P J Towers,
Bandra (E), Mumbai - 400051 Dalal Street, Fort, Mumbai 400 001
Scrip Code: PRICOLLTD Scrip Code: 540293
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Dear Sir,

Sub: Con-call Transcript

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we herewith submit the Transcript for the Con-call held on Friday, 7[th] November 2025 at 04:00 PM (IST) pertaining to Company’s unaudited financial results for the quarter and half year ended 30[th] September 2025.

This is for your information and records.

Thanking you

Yours faithfully, For Pricol Limited

T G Digitally signed by T THAMIZHA G THAMIZHANBAN Date: 2025.11.11 NBAN 17:16:03 +05'30'

T.G.Thamizhanban Company Secretary ICSI M.No: F7897

Encl. As above

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PRICOL Limited Q2 and H1 FY26 Earnings Conference Call November 07, 2025

Moderator:

Ladies and gentlemen, good day and welcome to the Q2 and H1 FY 2026 Conference Call of PRICOL Limited.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone.

Please note that this conference is being recorded. At this time, I would like to hand the conference over to Mrs. Purvangi Jain from Valorem Advisors.

Thank you, and over to you.

Purvangi Jain:

Good afternoon everyone and a warm welcome to you all. My name is Purvangi Jain from Valorem Advisors. We represent the investor relations of PRICOL Limited.

On behalf of the company, I would like to thank you all for participating in the company's Earnings Call for the second Quarter and Financial Year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's Earnings Call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions.

The purpose of today's Earnings Call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review.

Now let me introduce you to the management participating with us in today's earnings call, and hand it over to them for opening remarks. We have with us Mr. Vikram Mohan, Managing Director; Mr. P.M. Ganesh, Chief Executive Officer and Executive Director; Mr. Siddharth Manoharan, Director of Strategy; and Mr. Priyadarsi Bastia, Chief Financial Officer. Without any delay, I request Mr. Vikram Mohan to start with his opening remarks. Thank you, and over to you, sir.

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Vikram Mohan:

Welcome, namaskar, vanakkam to the H1 Earnings Call of Pricol for the financial year ending 31st March 2026. I hope all of you had a good festive season and had a good time with all of your family.

I hope all of you did see the presentation that has been uploaded. I'll give you a very quick synopsis of the same, and then we will move to the questions. I am sure a lot of you have questions to ask us.

We are overall pleased to deliver a good set of numbers for the first half of the year and the second quarter of the year. Our revenue from operations on a consolidated basis stands at around INR 988 crores with an EBITDA of INR 123.35 crores, thereby giving an EBITDA margin of 12.49%, a PAT of INR 64 crores, PAT margin of 6.5% with an EPS of INR 5.25 per share for the quarter. And for the half year, revenue from operations of INR 1,865.59 crores with an EBITDA of INR 225 crores, EBITDA margin of 12.07%, PAT of INR 113.88 crores, PAT margin of 6.1% with an EPS of INR 9.34 per share, which has seen a significant increase from H1 of the prior period and the Q2 of the prior period on a year-on-year basis.

On a consolidated basis for the quarter, our revenue from operations has grown significantly by 52%, both organically and inorganically. This has been affected by the acquisition of the new company, which is the name and style of Pricol Precision Products Private Limited, the injection molding division of Sundaram Auto that we had acquired, and our own very healthy growth has resulted in this 52% growth. Also a 41.59% EBITDA growth. You may feel why has the EBITDA growth been a little lower than the revenue growth. It is because of the consolidation of the plastics business that we acquired at a lower EBITDA, and slowly and steadily improving the EBITDA of that business. Our revenue from operations for the first half has grown by 48.89% and EBITDA by 34.24% compared to the same period in the prior year.

I do hope the set of numbers and any other questions related to this, we will answer in the question-and-answer session going forward. May I request all participants to restrict themselves to one question to allow other people to have a chance to ask their questions. If there are more than one question, request them to join the queue again. Thank you.

Moderator:

Vijay Pandey:

Vikram Mohan:

Thank you very much. The first question is from the line of Vijay Pandey from Nuvama. Please go ahead.

Congratulations for an excellent quarter. First, a couple of housekeeping questions. Just can you tell us what was the revenue above from Pricol Precision and what is the EBITDA margin from there?

I will request our CFO to answer the specific question. But EBITDA margin, when we took over the company, was at around 6.3% in March of this year, and it's been steadily growing monthon-month with the actions that we have been taking and has hit a number of about 9.5% in the

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month of September, which we hope to maintain and sustain in the months forward and a marginal improvement on that. So, it's been a steady improvement.

We have been having 0.5% or so EBITDA improvement every month since we have taken over with all the restructuring activities that we have planned. With regard to revenue and EBITDA for the H1, Priyan, I request you to take that.

Priyadarsi Bastia:

Vijay Pandey:

Vikram Mohan:

Good evening. For Q2, the revenue was INR 235 crores with an EBITDA of 9.08%. Thank you.

Secondly, so as we now look forward, we expected that there will be some production issues from rare earth magnets in Q2. Has that transpired? And are you seeing what are the level of orders you are seeing now in the Q3, especially with festive season and going forward over like next 2 months? So, if you can help us, that will be helpful.

Yes. So, there are 3 issues distinctly that you're talking about. What we alluded to in the last call was a rare earth magnet crisis, which was affecting the automotive industry as a whole. I think that crisis has largely passed. And we have been able to manage it very well, ably led by our CEO. We have been able to tide over that crisis, and we have been able to meet the numbers.

And yes, festive season demand is over. Always Q3 in the automotive industry is the weakest quarter in the year, and we will be aligned with that. Automotive industry never does Q2 level of performance in Q3 historically, and this year is going to be no different.

But having said so, I don't know how many of you are aware, there is a bigger crisis that has hit the auto industry, which is the semiconductor crisis caused by one company called Nexperia, right? So, this is not just restricted to Pricol. It has affected the whole industry. About 80, 90 semiconductor parts meant for automotive has gone out of production where they have raised their hands. So, many of the automakers and the Tier-1s like Pricol are affected. This, we believe, will have some degree of impact on the industry this quarter in addition to the overall low demand this quarter. How much? We don't know. Will the sales drop significantly compared to our original plan? No. It will not be significant. I'm quite confident we'll be able to ably manage it because we have found alternate sources, tested alternate parts, given it to the customer for validation. There could be some delays of revenue by 2, 3 weeks, but we will not lose the revenue.

But will we exceed our internal targets? Probably no. We'll probably meet our internal targets or be short of it by 4%, 5%. That's the status for this quarter. I will not be able to comment more or neither will our CEO be able to comment more because the situation is unfolding as it speaks, not just for Pricol, but for the entire automotive industry.

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Moderator:	Thank you. The next question is from the line of Nishita Shanklesha from Sapphire Capital.
	Please go ahead.
Nishita Shanklesha:	So, I just have a few questions. I wanted to understand about your CAPEX plans. What is the
	total amount of CAPEX that you've done in FY '26? And what is the CAPEX plan for FY '27?
Vikram Mohan:	This year, we will be doing about INR 250 crores of CAPEX and we are again beginning to start
	another CAPEX cycle because of the acquisition of the new business and a lot of the new
	business opportunities, the switches business that we have signed a new technology license
	agreement for. So, we are going to be creating capacities for many of those businesses. We
	have won a lot of new business in the SPM space, the disc brake space. So, we are again getting
	into a CAPEX cycle and also buying some land for expansion of the company. This year, it will
	be somewhere in the region of INR 250 crores to INR 300 crores and next year would be a very
	similar number.
Nishita Shanklesha:	Okay. Okay. Understood. Also, so your depreciation has been increasing quarter-on-quarter in
	this H1 it includes. So, can you give any reason for that?
Vikram Mohan:	Yes. We are continuously investing in new machinery modernization, debottlenecking
	production lines. So, we have been on a heavy CAPEX mode in the last 2 years itself. So, as a
	result, our depreciation is going to keep increasing going forward. As we evolve from being a
	mechanical to an electromechanical to an electronics company and now the plastics business
	is also undertaking expansion and modernization, the more the CAPEX, the more the
	depreciation. And that's going to continue. That's going to be the trend for the next 3 years.
Moderator:	Thank you very much. The next question is from the line of Ashwin Patil from LKP Securities.
	Please go ahead.
Ashwin Patil:	Congratulations on a great set of numbers. My question is on P3L business. Just wanted to
	know the business outlook for this business going forward like in medium and long term? And
	also on the margin front, how much expansion do we see in the margins going forward? And
	also the order wins we would be seeing or the client wins which we have seen in this quarter.
	And going forward, how are we planning to expand our clientele going forward?
Vikram Mohan:	Okay. That's 4 questions bundled into one. Yes, we took over a business with about 6.5%
	EBITDA. We have grown it to about 9.5%. I think PAT for the course for this business would be
	about 10% to 10.5%, which we will hit over the next quarter or 2.
	In terms of margins, will there be scope to expand beyond that at this point in time, no. B, is
	there going to be a huge amount of growth in the next 2 years? The answer again is going to
	be no. It is going to be a reasonable amount of growth of between 11% to 15% because we
	need to create capacity. So, we are in the process of buying land and creating more plants and

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putting in new machinery, etcetera. So, now there is a very healthy pipeline of RFQs and orders, but we are unable to convert it to business because of lack of real estate, which we are now working on.

But having said that, I'm very confident that we will be able to deliver 11% to 14% year-on-year or 15% year-on-year growth for the next year, year and a half. Thereafter, accelerated growth with the capacities being enhanced. It was a very tedious dependent business when we took it over. We have now increased our business. We have won a lot of business from Ather. We have won business from Hanon. We have won business from Autoliv. We have won business from Schneider. We are now in active talks with Hero, Honda and Bajaj and Tata Motors where we are in the final stages of getting business awarded. So, it is going to change the landscape of the business quite significantly in the next 2 years as we add more customers, add more capacity and add more plants to the company.

Moderator:

Vijay Pandey:

Vikram Mohan:

Vijay Pandey:

Vikram Mohan :

P. Ganesh:

Thank you very much. The next question is from the line of Vijay Pandey from Nuvama. Please go ahead.

So, 2 questions. One on our dividend plan. So, this is the first time we have announced dividend. I just wanted to understand what is our dividend payout policy expected to be? Will it be like - - should we expect another 2 rupees in the second half of this year? Or will it be like 2 only for the entire year?

Vijay, this would be for the entire full year. We had planned it actually for the year ending FY '25. But because the semiconductor crisis was hitting, we didn't know what is going to be the degree of the rare earth magnet crisis. We thought there was a lot of doomsday predictions. So, we had deferred it by a quarter to see how we are able to tie it over and then we paid out this dividend. And undertaking a heavy CAPEX cycle again, I think it's prudent to put money back into the business and create wealth for our shareholders, then go through the dividend route, which I don't think is very financially good returns for our shareholders because of the taxation involved.

Okay. That was very helpful and that confirms our view. Can you just speak a little bit about the disc brake business and how is this coming up? What is the revenue--?

Pardon me, Vijay, can you repeat again? Disc brake business coming up. Yes, I will start with production. I will request our CEO to throw some more light about the disc brake business.

Disc brake has gone into productionization about 6 months back. First, we have started with the new age EVs. And also we have won a large business from the top 5 OEMs in the country. So, that will go into productionization from Q1 of next year. So, as you know that when ABS is becoming mandatory from January onwards, disc brake also will become like an equivalent

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mandatory to an ABS. So, we find that the growth of disc brake is going to be quite good in the coming years. Thank you. Vijay Pandey: Just so that order is for like which category of model? Will it be more than 200cc or in the new range? And how do you see the government regulation? Because a couple of competitors have said that that mandate is not going to come. I just want to see your understanding on that. P. Ganesh: So, the government, what you call, the mandate has come as that all, see irrespective of the cc, ABS would be mandatory. That is what the regulation says from January onwards. So, irrespective of the cc, currently 150cc and above have got ABS. Now irrespective of the cc, all vehicles will have ABS. So, if you have to implement ABS, disc brake is also mandatory to have it. So, that's why you find that the disc brake business will be right, yes. Vijay Pandey: And our orders for, like, 150cc and above or--? Vikram Mohan : Sir, I think we have a lot of people on the queue. I think we are going too deep into one product category, into a vehicle category. I think we should give an opportunity for the others. Thank you, Mr. Vijay. Moderator: Thank you very much. The next question is from the line of Nishita Shanklesha from Sapphire Capital. Please go ahead. Nishita Shanklesha: Yes. So, it's a follow-up question on the CAPEX only. You mentioned that in FY '27 also, we will do INR 250 crores to INR 300 crores of CAPEX. So, is that going to be the acquired business or for our business only? And if you could also... Vikram Mohan: Both. Nishita Shanklesha: Okay. So, it is going to be for the both. And you mentioned that for the acquired business, we are in the process of looking for land and then build a plant. So, like have we already bought a land? Or what's the progress on that? Vikram Mohan: We are in the final process of completing the land purchases. It should be completed in the next 45 days or so whereas all legal due diligence is completed. And in fact, we are drawing up plans to even start construction of the plants. Moderator: Thank you very much. The next question is from the line of Shubham Batra from Ambit Asset Management. Please go ahead. Shubham Batra: Congratulations on a good set of numbers. A couple of questions on the new order wins that you had indicated in the last quarter. You indicated we got an order from Yamaha and Honda. Can you give us an update on is it on track and when do we start seeing revenue from it? Secondly, anything that you could add on to the...

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Vikram Mohan:

One question at a time. I think people are bundling in too many questions. What are the new order wins from the last quarter. Ganesh, what are the new order wins in the last quarter? Any new order win in our DICVS division or ACFMS division from the LOI to SoP, start of production, is always about a 24-month lead time. So, that's a generic answer for most of our things. Plastics, it's more like 6 to 8 months. Ganesh, what are the significant new order wins for the last quarter?

P. Ganesh:

Last quarter, you could have seen that -- you asked specifically for Honda and Yamada, right? I think that was your question.

Shubham Batra:

Right, sir.

P. Ganesh : Okay. Honda, in fact, we have already gone into mass production in the last 2 quarters for their motorcycle model where our instruments are being used. Secondly, the new EV vehicle launch by Honda, we supply the speedometers to them. Both the models actually already have gone into the ramping up stage, and we are working with Honda for much more models in the future to come.

Yamaha actually has made some kind of initial discussion with us and we have also got some requirement from Yamaha, which we are trying to convert into a business.

Vikram Mohan:

They have also completed the audit and certified our facility. So, they've completed the audit of the plant certified us and now engaged in commercial discussions and LOI is not received as yet is under discussion.

Moderator:

Thank you very much. The next question is from the line of Madhav Agarwal from Emerge Capital. Please go ahead.

Madhav Agarwal:

Sir, for our product verticals, the 3 verticals, DIS, Actuation Systems and Precision Products, just wanted to understand what is the current share of revenue between the 3 and the margin profile? And also what is the target share that we are hoping to achieve between the 3?

Vikram Mohan:

This year, the plastics, the Polymer business will be about INR 850 crores to INR 900 crores with a steady-state margin of 9.5%. Of course, we started the year with a much lower margin because we have just acquired the business and a steady-state margin of about 9.5%. The ACFMS division is going to go through a very steep growth curve in the next 36 months because of acquisition of new customers and new product vertical. We are going to be seeing about 30% to 35% growth year-on-year or perhaps even higher in the next 2 to 3 years. And that is at about INR 600 crores. And the DICVS vertical will be at around INR 2,100 crores to INR 2,200 crores, and the margin is likely to be at around 12.5% to 13%. Correct me if I'm wrong, Ganesh.

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Madhav Agarwal:

Okay. Just wanted to know the mix between these 3 divisions, any change in the mix that you will see going forward?

Vikram Mohan: So, like I mentioned to an earlier participant, we will see 11% to 15% growth for our Polymer division till we add capacities and then we will see a much higher growth rate. ACFMS will see a growth of about 30%, 35% in the next 2 to 3 years, we aspire to grow. The DICVS division will maintain a steady state growth of above 15%.

Moderator: Thank you very much. The next question is from the line of Vipulkumar Anopchand Shah from Sumangal Investments. Please go ahead. Vipul Shah: Yes. My question has been answered. Vikram Mohan: Thank you, Mr. Shah. Moderator: Thank you very much. The next question is from the line of Chaitanya Hardikar from Purnartha Investment Advisers Private Limited. Please go ahead. Chaitanya Hardikar: I just wanted to ask one question. If I'm not wrong, we had a target of around INR 8,000 crores of annual revenue by FY '30. And what I have understood from your earlier answers is that we are planning around INR 500 crores of CAPEX over the next 2 years. So, just to know if that CAPEX will be sufficient to reach the target or are you planning some more CAPEX or something any opportunity there?

Vikram Mohan: No, this CAPEX is not going to be sufficient to meet that. CAPEX will be an ongoing affair as and when we acquire businesses and create capacity. So, we have carved out the balance sheet all and it's not FY '30, it is December 30, which is FY '31 and it is INR 8,000 crores. And CAPEX will be an ongoing item because there is a sustenance CAPEX of INR 120 crores to INR 150 crores that has to be done every year. It's not that there will be INR 0 CAPEX after that. Chaitanya Hardikar: Okay. So, can you just give me a little bit of guidance on how that CAPEX would be around and just a broad estimate? Vikram Mohan: I think I have given an estimate for this year and next year. It will as it evolves, CAPEX will happen. But I don't remember, we have projected a 5-year balance sheet. I'm not able to remember from memory what exactly is going to be our CAPEX for the next 5 years, I'm sorry. Moderator: Thank you very much. The next question is from the line of Nishita Shanklesha from Sapphire Capital. Nishita Shanklesha: So, I just have 2 more questions. One is on what is the current capacity and its utilization for both the business and the guidance for FY '26, FY '27 sustainable margins? These are my 2 questions.

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Vikram Mohan: Margins, I already spoke about, ma'am, to an earlier person in the Q&A. So, I'm not going to repeat that. In terms of capacity utilization for the Polymer business, it is closer to 94%, 95% today, which is why we are enhancing capacities. Once we enhance capacities for the DICVS division, which will happen over the next 2 quarters, which is a work in progress, then our capacity utilization will come down to about 70% so that we have capacity for more growth in that division. In the ACFMS, it is currently at around 80%, 85% and additional capacities are being created. Moderator: Thank you very much. The next question is from the line of Meenu, an Individual Investor Meenu: Sir, can you give me guidance on tentative EBITDA of your cluster business? Vikram Mohan: I don't want to be giving future-looking numbers. I've already given what the run rate is and what we hope to maintain, ma'am. I don't want to give forward-looking statements, ma'am. Meenu: And sir, can you give me guidance on the growth of Pricol, like the current growth of Pricol and growth from each system at... Vikram Mohan: I just answered that to another investor just now each division, what EBITDA and what growth rates we are expected to maintain ma'am. Moderator: The line for the participant is disconnected. The next question is from the line of Ashwin Patil from LKP Securities. Please go ahead. Ashwin Patil: This question is on ACFMS that we have just said that we are expecting about 30% to 35% kind of growth in this business going forward. So, what would be the composition? From where all this business we are expecting to come from? Vikram Mohan: The first wave will come from FPM, second wave of growth from disc brake, the third wave of growth from the switches. Ashwin Patil: Okay. So, over a period of like 1.5 years or I mean, what period or the duration we would be expecting this kind of... Vikram Mohan : The switches will be 2 years later. Disc brake growth will happen from 18 to 24 months. FPM is as we speak. Moderator: Thank you very much. The next question is from the line of Smit Shah from Monarch Networth Capital Limited. Please go ahead. Smit Shah: Congratulations on a good set of numbers. So, my question is regarding 2 collaborations that we have done. One is the tech license agreement for handlebar and the other is with BOE for

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optical bonding. What is the progress on the same, the tentative CAPEX that will be required for the same? And by when can we expect the revenues to start?

Vikram Mohan:

Thank you for your note of congratulations, Mr. Shah. Let me correct you, it's not for the handlebar. It's products of the handlebar. So, handlebar per se is just a metal form product. It's primarily for the switches and the throttle. In fact, we have just had the first engineering workshop and it is not a JV. It's a technology license agreement, TLA, right? So, we are going to start the roadshow to the customers, 2 customers have already -- our anchor customers. They are the ones who actually identified the partner and asked us to go forward with them, 2 large customers, OEMs in India. They will be our anchor customers.

Next in 2 weeks' time, we are starting our roadshow with our partners to not just those 2 customers, but a whole host of other customers. Revenues are about at least 24 months away because it's a completely new vertical. That's what I answered to the gentleman, Mr. Ashwin Patil in the earlier because it now has to get converted to a product into testing and revenue. So, we are talking of about 24 months away.

With regard to BOE, it is for a backward integration to do the optical bonding and screen manufacturing. That way, we make it a little more Atmanirbhar Bharat as per our PM statement, and we reduce our import dependence. And we are also able to get some cost arbitrage because we then get into also the screen because there are 3 important components of instrument cluster, which is, a, all the plastics, which we do; all the PCBs, which we do; and third is the screen, the most expensive part for the touchscreen, which is where we are going into. We are just constructing the premises for the same, and we have concluded on the entire project cost. It will be spent over the next 9 months and productionized. Is it going to give any revenue? No, because it is a backward integration project to make it more self-reliant and to give us cost arbitrage. Because our major competitors are backward integrating also, so if we do not backward integrate, we will not have a cost arbitrage. So, it is not going to be a revenueearning technology license agreement. It is to strengthen our business and our offerings to our customers and reduce our import dependence.

Moderator:

Saurabh Kachhawa:

Vikram Mohan:

Thank you very much. The next question is from the line of Saurabh Kachhawa from IndusInd General Insurance. Please go ahead.

So, this question is regarding the newer verticals, which we are willing to enter in. So, in the last concall, we discussed about the smart e-cockpits and battery management systems being tested at your various customer places. So, I wanted to understand how far we reached in that and any further visibility about that?

We have developed the product. We have showcased it in technology roadshows to our customers. And revenue potential, we are yet to see because now customers know that we are

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able to meet the cost, the quality and have the technology. Now it has to slowly start translating into revenue. Is there any revenue visibility as we speak? The answer is no.

Saurabh Kachhawa: So, would it be okay to assume that it would be a margin accretive business for us as it is a pretty advanced thing? Vikram Mohan: Yes. It will be anything new. When we got into LCD for the first time 5 years ago, it was hugely margin accretive. Now slowly, it is getting commoditized. So, any new technology is slow to start off and then until it picks up pace it's margin accretive, then it gets commoditized. Moderator: Thank you very much. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to management for closing comments. Vikram Mohan: Thank you very much, ladies and gentlemen, for your active participation in this call. We do hope that we are able to tide over the current crisis that has hit the automotive industry, which is the Nexperia crisis, which, of course, is way beyond our control, and we are ably navigating it under the leadership of our CEO and his management team. And we do hope that the impact of this crisis will be minimum, and we will be able to meet and exceed the investors' expectations in this quarter also.

Look forward to connecting with you in the next call after the Q3 results are announced. Thank you. Have a good evening.

Moderator: Thank you very much. On behalf of Pricol Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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