Permanent Magnet - Permanent Magnet

📊 BSE: 504132 🏢 Other Electrical Equipment 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company reported a 41.44% YoY revenue growth in FY2023 to INR 183.53 Cr, followed by a 9.77% growth to INR 201.47 Cr in FY2024. Segment-wise revenue mix as of Q2 FY2026 shows Energy Meters at 37% (down from 45%), Automotive at 22% (down from 30%), Current Transformers (CT) at 10%, Magnetic Assemblies at 9%, and Alloys at 7%.

Geographic Revenue Split

PML maintains a global presence across India, the USA, Europe, and Brazil. While specific percentage splits per region are not disclosed, the company notes that its largest customer for the energy meter segment is based in the USA, making it sensitive to US trade policies.

Profitability Margins

Net profit margins (PAT) stood at 16.21% in FY2023 (INR 29.75 Cr) but declined to 11.29% in FY2024. For H1 FY2025, the operating margin was 14.53%. The decline is primarily attributed to a change in the sales product mix and lower demand in the high-margin EV segment.

EBITDA Margin

EBITDA margins were 24.98% in FY2023, which compressed to 18.70% in FY2024 and further to approximately 12% in recent quarters. Management expects a recovery to a sustainable range of 16% to 18% as the product mix stabilizes with higher alloy and relay contributions.

Capital Expenditure

PML is undertaking a major CAPEX of INR 25-30 Cr to shift its entire plant and machinery to a new site, expected to be completed by FY2027. Additionally, the company is expanding its alloy capacity to 750 tons annually to support growth in the aerospace and oil & gas sectors.

Credit Rating & Borrowing

The company's credit rating was upgraded in April 2024 to 'ACUITE BBB- | Stable' for long-term and 'ACUITE A3' for short-term facilities totaling INR 34.48 Cr. The upgrade reflects a healthy financial risk profile with a low gearing of 0.05 times as of March 31, 2023.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Alnico (Aluminum, Nickel, and Cobalt) and virgin alloys. The company also utilizes recycled materials for specific alloy production depending on customer requirements and margin targets.

Import Sources

Not specifically disclosed, though the company mentions exposure to foreign exchange fluctuations, suggesting significant international sourcing for specialized magnet components.

Key Suppliers

Not disclosed in available documents; however, the company maintains long-term associations with suppliers spanning over two to three decades.

Capacity Expansion

Current alloy capacity is being scaled to 750 tons per year post-furnace installation. The company is also expanding into block cutting and magnetic assembly through its Quantum Magnetics division.

Raw Material Costs

Raw material costs are a significant driver of margins; volatility in Alnico component prices (Nickel/Cobalt) directly impacts the EBITDA. The company uses a natural hedge to mitigate some forex-related cost risks.

Manufacturing Efficiency

The company reported a high Return on Capital Employed (ROCE) of 41.70% in FY2023, up from 35.95% in FY2022, indicating high capital efficiency despite recent margin compression.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

20-30%

Growth Strategy

Growth will be driven by a 20-30% revenue CAGR target for FY2027 through the scale-up of the alloy and relay businesses, forward integration into modules and components, and the relaxation of import restrictions for the Quantum Magnetics assembly business.

Products & Services

Alnico Magnets, Magnetic Assemblies, parts for Electricity and Gas Meters, EV components, Alloy castings, Relays, and Current Transformers (CT).

Brand Portfolio

Permanent Magnets Limited (PML), Quantum Magnetics.

New Products/Services

New product launches include alloy castings, modules, and forward-integrated components, which are expected to seize growth momentum over the medium term.

Market Expansion

PML is targeting the aerospace, defense, and oil & gas sectors with its new alloy capacity. It is also expanding its footprint in the EV and smart meter markets globally.

Market Share & Ranking

Not disclosed; however, PML is the flagship company of the Taparia Group and has been operational since 1960.

Strategic Alliances

The company operates Quantum Magnetics as a specialized division for magnetic assemblies and block cutting.

🌍 External Factors

Industry Trends

The industry is shifting toward smart meters and EV components. While EV demand was subdued in FY2025, the long-term trend remains positive, and PML is positioning itself through forward integration into assemblies.

Competitive Landscape

The market is highly competitive and fragmented, featuring both large organized players and smaller unorganized manufacturers.

Competitive Moat

PML's moat is built on 60+ years of technical expertise in magnetics and long-term (20-30 year) relationships with global OEMs, which are difficult for new entrants to replicate.

Macro Economic Sensitivity

Highly sensitive to global EV demand and international trade policies, particularly US import tariffs which affect the meter business.

Consumer Behavior

Shift toward green energy and smart infrastructure is driving demand for PML's high-precision magnetic components in meters and EVs.

Geopolitical Risks

US-China trade tensions and resulting US tariffs impact the competitive positioning of PML's products in the American market.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to import/export notifications; for instance, the Quantum Magnetics division's revenue is currently dependent on the official notification of relaxed import restrictions.

Environmental Compliance

Not disclosed in absolute INR values.

Taxation Policy Impact

Not specifically disclosed beyond standard corporate tax compliance.

Legal Contingencies

The company's auditors and management have certified that there are no fraudulent or illegal transactions, and financial statements present a true and fair view.