Pricol Ltd — Q3 FY26 earnings call

Call held 30 Jan 2026

Management summary

Pricol Ltd delivered a robust performance in Q3 and the first nine months of FY26, driven by strong sales growth across consolidated operations and key segments. The company highlighted significant progress in new product development, strategic partnerships for backward integration, and capacity expansion plans for its polymer division. Management expressed confidence in outperforming market growth and effectively managing operational risks like commodity price fluctuations and supply chain disruptions.

Highlights

  • Q3 FY26 revenue from operations crossed ₹1,000 crores, with consolidated sales growing 65.67% YoY.

  • Q3 FY26 EBITDA stood at ₹125 crores, marking a 12.19% growth YoY.

  • Q3 FY26 EPS was ₹5.22, a 53.53% increase from ₹3.4 in the corresponding Q3 last financial year.

  • Nine-month consolidated revenue reached nearly ₹2,900 crores, growing 54.42% YoY.

  • Nine-month consolidated EBITDA was ₹350 crores, with a margin of 12.11%, growing 42.24% YoY.

  • Pricol Precision (P3L) division reported Q3 revenue of ₹233 crores and an EBITDA margin of 9.33%.

  • The company plans a CAPEX of approximately ₹500 crores over the next two to three years, funded by internal accruals.

  • Nexperia supply chain risks have been fully de-risked with approved alternate suppliers.

Key financials

3 periods

Headline

  • P3L Q3 Revenue
    ₹233 Cr

Q3

  • Revenue
    ₹1,000 Cr
    YoY +65.7%
  • EBITDA
    ₹125 Cr
    YoY +12.2%
  • EPS
    ₹5.22
    YoY +53.5%

9M

  • Revenue
    ₹2,900 Cr
    YoY +54.4%
  • EBITDA Margin
    12.1%

What they filed

Q1 FY27: revenue up 24.7%, net profit up 25.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue664 630 624 683 758 +14%800 +27%856 +37%852 +25%
EBITDA74 69 65 78 88 +19%90 +30%95 +46%93 +19%
Net profit42 36 28 39 46 +10%44 +22%78 +179%49 +26%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Pricol Precision (P3L)
    ₹233 Cr Q3 Revenue9.3% Q3 EBITDA Margin
  • ACFMS Division
    15% Q3 Export Growth

Guidance & targets

Capex

  • Total CAPEX Capex · next two, three years · High confidence ~Rs. 500 crores
    we are looking at a CAPEX of about Rs. 500 crores for the group.

    — P.M. Ganesh

  • Polymer Division CAPEX Capex · next two to three years · High confidence ~Rs. 400-500 crores
    overall, we will be investing close to about Rs. 400 crore to Rs. 500 crores over the next two to three years on new product and bulk of it will be invested for our polymer division to create new capacities.

    — Siddharth Manoharan

Volume

  • Disc Brake Production Start Volume · coming financial year · High confidence Q1 or beginning of Q2
    the start of production will be there during Q1 or latest by beginning of Q2 [coming financial year].

    — P.M. Ganesh

  • BMS Production Start Volume · FY27/FY28 · High confidence next maybe four or five quarters
    the battery management system also will find a start of production in the next maybe four or five quarters.

    — P.M. Ganesh

  • BOE Partnership Production Start Volume · FY27/FY28 · High confidence next four to five quarters
    Yes, production will start from the next four to five quarters.

    — P.M. Ganesh

Other

  • BOE Partnership Investment Start Other · FY27 · High confidence next three to four quarters
    Investment. We will start from the next three to four quarters.

    — P.M. Ganesh

Profitability

  • P3L EBITDA Margin Profitability · implied future · Medium confidence 10.5%
    We had indicated guidance of 10.5% as an aspirational margin for this business... we expect the margins to hit the desired numbers or optimal numbers that we have indicated in the past.

    — Siddharth Manoharan

Revenue

  • PRICOL Standalone Revenue Growth Revenue · next year · Medium confidence much more than 8% to 9%
    If the industry is going to grow by 8% to 9%, we are sure that we will grow much more than that.

    — P.M. Ganesh

Risks & concerns

  • Capacity Constraints in PRICOL Precision (P3L)

    medium

    P3L is currently stretched for capacities, temporarily hampering growth, but new investments are underway to create additional capacity.

    Management acknowledged

  • Commodity Price Up-cycle

    low

    Management stated 100% back-to-back indexing with customers, ensuring recoverability of costs with a 3-6 month lag.

    Analyst acknowledged

  • Impact of New Labor Law on Employee Costs

    low

    Management stated the new labor code has not had a significant impact on employee costs as the company had proactively addressed this in the past.

    Analyst downplayed

Areas of evasion (1)

  • Specifics on P3L inorganic acquisition status

Q&A highlights

2 direct, 1 evasive
Nexperia Crisis Resolution Direct
We have de-risked all the components of nexperia as we talk. We do not see any risk going forward because we have developed alternates and the customer also has approved.

Addresses a significant operational risk previously discussed, confirming its successful resolution and de-risking the supply chain.

Asked by Akhilesh Rawat

CAPEX Outline and Funding Strategy Direct
we are looking at a CAPEX of about Rs. 500 crores for the group... And it will all be planned to be met through internal accrual.

Provides clear figures for future capital expenditure and reassures investors about the company's ability to fund these investments internally without increasing debt.

Asked by Jyoti Singh, Karan Gupta

Status of Inorganic Acquisition in PRICOL Precision (P3L) Evasive
Kush, we constantly keep evaluating opportunities as we used to do. And if something materializes, then we will inform you on it... Nothing in the advanced stage at this point in time.

Indicates a lack of concrete progress or a reluctance to disclose details regarding a previously mentioned strategic growth initiative for the P3L segment.

Asked by Kush Nahar

2 min read 6 chapters

Detailed narrative

Q3 & 9M FY26 Financial Performance Overview

Pricol Ltd reported a robust Q3 FY26, with revenue from operations crossing the ₹1,000 crore milestone. Consolidated sales grew significantly by 65.67% year-on-year, while EBITDA increased by 59.44% to ₹125 crores. The company's Q3 EPS stood at ₹5.22, a substantial rise from ₹3.4 in the prior year. For the nine-month period, consolidated revenue reached nearly ₹2,900 crores, marking a 54.42% growth, with EBITDA at ₹350 crores and a margin of 12.11%.

New Product Development and Market Entry

Pricol is actively pursuing new product initiatives, with disc brake production for a major two-wheeler OEM slated to begin in Q1 or early Q2 of the upcoming financial year. The Battery Management System (BMS) is expected to commence production in the next four to five quarters, following successful development and testing phases. Additionally, the e-cockpit product is currently in the proof-of-concept stage, with mass production anticipated within three to four quarters.

Strategic Partnerships and Backward Integration

The company has forged an exclusive Memorandum of Understanding (MOU) with BOE, a leading global display manufacturer, for backward integration of LCD and TFT development in India. Investments for this partnership are projected to start in the next three to four quarters, with production commencing in four to five quarters. Pricol is also collaborating with Domino on a joint study for switches and throttles targeting premium two-wheeler customers in Europe.

Pricol Precision (P3L) Performance and Capacity Expansion

The PRICOL Precision (P3L) division contributed ₹233 crores to Q3 revenue, achieving an EBITDA margin of 9.33%. Management acknowledged that P3L is currently operating at over 90% capacity utilization, which is temporarily constraining growth. To address this, Pricol plans to invest approximately ₹400-500 crores over the next two to three years, primarily to expand capacities within its polymer division, with an aspirational EBITDA margin target of 10.5% for P3L.

Capital Expenditure and Funding Strategy

Pricol has outlined a CAPEX plan of around ₹500 crores for the entire group over the next two to three years. A significant portion of this investment is earmarked for the polymer division to create new capacities. The company confirmed that all planned capital expenditures will be financed through internal accruals, emphasizing that there are no long-term borrowings on its balance sheet.

Operational Risk Mitigation and Market Outlook

The previously identified Nexperia supply chain crisis has been fully resolved, with all components de-risked through approved alternate suppliers, eliminating future concerns. While commodity prices are on an up-cycle, Pricol maintains 100% back-to-back indexing with customers, ensuring cost recovery with a 3-6 month lag. Management expressed confidence in outperforming the market, expecting PRICOL standalone growth to be 'much more than' the industry's projected 8-9% for the next year.

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