Poojaa Precision Engineering reported a strong H1 FY27 performance with revenue up 68% at INR 210 crore and net profit surging 88% to INR 25 crore. The company announced plans to double its production capacity by FY28 and targets INR 1,000 crore annual revenue by FY30, supported by a healthy INR 1,180 crore order book.
Poojaa Precision Engineering Reports Strong H1 Performance
Revenue grew 68% to INR 210 crore; Profit After Tax rose 88% to INR 25 crore.
Reader Takeaway: Strong order book and capacity expansion drive growth, balanced by long-term execution risks in the aerospace segment.
What just happened
Poojaa Precision Engineering has delivered a robust set of financials for the first half of FY27. The company's top-line reached INR 210 crore compared to INR 125 crore in the year-ago period. EBITDA improved significantly to INR 40 crore, up 73% year-on-year, while the EBITDA margin stood at 19%.
Why this matters
The growth trajectory is underpinned by a massive order book of INR 1,180 crore. Management is actively diversifying its revenue streams, moving toward a 50:50 mix between automotive and non-automotive sectors to mitigate cyclical risks. A key highlight is the company's protection against commodity volatility, as it maintains a full pass-through mechanism for aluminium prices with its customers.
What changes now
The company has set an ambitious growth roadmap. It expects to achieve 50% revenue growth for the current fiscal year and targets a 30%-35% CAGR over the coming years. To support this, production capacity for melting and casting is slated to more than double by FY28.
Risks to watch
While the aerospace segment has secured approvals from HAL and the Indian Air Force, management noted that moving from prototype to commercial revenue remains a long-term play, estimated at approximately four years. Additionally, the aggressive capacity expansion requires efficient absorption to maintain current margin levels.
Context metrics
The company currently manages a 45-day working capital cycle with inventory levels at INR 60 crore. Non-automotive business is currently providing superior margin contributions, accounting for 60% of the total margin in H1 compared to 40% from the automotive segment.