Permanent Magnets Ltd reported a 13% revenue increase and 36% standalone profit growth for FY26. The company recommended a final dividend of ₹2.20 per share and plans to raise borrowing limits for expansion.
Standalone Revenue Up 13% to ₹225.46 Cr, PAT Jumps 36% to ₹20.69 Cr Reader Takeaway: Standalone growth and margin expansion are positive; relay commercialization delay is a key concern. ## What just happened Permanent Magnets Ltd (PML) announced its financial results for FY26, showcasing a significant recovery and growth. Standalone revenue rose by 13% to ₹225.46 crore, while standalone profit after tax (PAT) surged by 36% to ₹20.69 crore. Consolidated revenue saw a 10% increase to ₹226.24 crore, though consolidated PAT saw a minor dip of 4% to ₹15.07 crore, attributed to investments in a subsidiary. ## Why this matters The strong standalone performance, driven by operational efficiencies and a favorable product mix, indicates improved profitability. The proposed increase in borrowing limit to ₹300 crore signals a readiness for future capital expenditure to fuel expansion. The recommended final dividend of ₹2.20 per share offers a direct return to shareholders. ## The backstory The company experienced a recovery in FY26 after a period of consolidation in the previous fiscal year. Growth was particularly strong in the latter half of FY26. ## What changes now PML has commissioned a new furnace in its Alloys Division in Q4 FY26, which has AS9100D certification, potentially opening doors to the aerospace and defense sector. The Relay business is on the verge of commercial ramp-up, with contributions expected from H2 FY27. Quantum Magnetics is progressing with its Phase 2 development, targeting integrated capacity of 5,000 tonnes by FY31. ## Risks to watch The commercialization of the Relay business faces delays due to extended customer endurance testing, posing a short-term growth risk. Additionally, Quantum Magnetics' reliance on global rare-earth supplies, particularly from China, presents a supply chain risk. ## Peer comparison While specific peer data is not provided in the filing, the company's focus on specialized divisions like aerospace-certified alloys and advanced magnetics suggests a strategy to move up the value chain. Investors may compare PML's growth and profitability metrics against other industrial manufacturing companies in similar niche segments. ## Context metrics (time-bound) * **Standalone Revenue:** ₹225.46 crore in FY26 vs ₹199.54 crore in FY25 (+13%). * **Standalone PAT:** ₹20.69 crore in FY26 vs ₹15.16 crore in FY25 (+36%). * **Consolidated Revenue:** ₹226.24 crore in FY26 vs ₹205.05 crore in FY25 (+10%). * **Consolidated PAT:** ₹15.07 crore in FY26 vs ₹15.74 crore in FY25 (-4%). * **EBITDA Margin:** 17% in FY26 vs 14% in FY25. * **Dividend:** ₹2.20 per equity share recommended for FY26. ## What to track next Investors will be keen to monitor the actual commercialization timelines for the Relay business and the progress of Quantum Magnetics' Phase 2 development. The successful utilization of the increased borrowing limit for expansion projects will also be crucial.
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