Permanent Magnets reported a robust Q2 FY27 with revenue rising 49% YoY to Rs 72.5 crore and EBITDA surging 159% to Rs 17.8 crore. Margins expanded to 25%, fueled by strong EV segment growth. While new projects like Quantum Magnetics and Relays are progressing, commercial scaling for these is expected in FY28. Management maintained a positive outlook with FY27 revenue growth guidance of 20-30%.
Permanent Magnets Q2 Profit Surges 159% on EV Momentum
Revenue grew 49% YoY to Rs 72.5 crore; EBITDA margins hit 25%.
Reader Takeaway: Strong EV demand drives immediate margin expansion, while long-term growth hinges on FY28 commercialization of new projects.
What just happened
Permanent Magnets Limited reported a strong financial performance for Q2 FY27. Revenue reached Rs 72.5 crore, a 49% increase compared to the same period last year. The company’s focus on the automotive segment, particularly EV components, saw sales climb to Rs 24 crore for the quarter, up from Rs 10.5 crore in Q2 FY26. Profitability also saw a significant boost, with EBITDA rising 159% YoY to Rs 17.8 crore, bringing the EBITDA margin to 25%.
Why this matters
The margin expansion from 14% in the previous year to 25% highlights the company's ability to capitalize on improved product mixes and operating leverage. Management noted that the surge in EV revenue is driven by existing customer demand, specifically within export markets looking to diversify supply chains away from China.
What changes now
Operational focus is shifting toward new growth engines. The Alloys division has resolved previous furnace teething issues and is guided to generate Rs 40-50 crore in revenue for FY27. Meanwhile, Phase 2 of the Quantum Magnetics project was commissioned in October 2026, and the company has secured benefits under the ECMS PLI scheme. However, commercial revenue for these new ventures is largely deferred until FY28.
Risks to watch
Growth in the Relays and Quantum Magnetics segments remains contingent on customer approvals, which have seen previous delays. The company also faces ongoing import dependence for raw materials in its magnetics division, creating potential supply chain vulnerability. Furthermore, the absence of formal off-take agreements means future revenue is sensitive to the success of pilot projects currently underway.
What to track next
Investors should monitor the plant consolidation project, which involves a Rs 30 crore capex commitment to streamline operations over the next two years. Additionally, progress on pilot supplies for the Relays project in H2 FY27 will be a key indicator for scaling expectations in the coming fiscal year.