1. Forward-Looking Statements
This Management Discussion and Analysis Report contains forward-looking statements relating to the Companys objectives, projections, estimates, expectations and plans that may qualify as forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events over which the Company exercises no control.
Actual results may differ materially from those expressed or implied, on account of factors including but not limited to changes in demand for commercial vehicles and industrial products, volatility in polymer and metal input prices, customer concentration, changes in the product plans and launch calendars of our customers, availability and cost of capital, changes in government policy, taxation and regulation, litigation, industrial relations and other incidental factors.
The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such statements.
2. Economic Environment
2.1 Global economy
The global economy in the financial year 2025-26 continued to navigate a period of moderate but uneven growth. Disinflation in most advanced economies allowed central banks to begin easing policy rates, which improved credit conditions and supported industrial activity through the second half of the year. At the same time, growth remained constrained by the persistence of trade frictions and tariff actions between major economies, elevated geopolitical tension, subdued demand in parts of Europe and East Asia, and continued volatility in commodity and freight markets.
For manufacturers of engineering and polymer-based products, the year was characterised by two competing forces: softer crude-linked feedstock costs for parts of the year, which supported input cost management, and continued reconfiguration of global supply chains, which is progressively creating sourcing opportunities for Indian component manufacturers.
2.2 Indian economy
India retained its position as the fastest-growing major economy during FY 2025-26. Growth was underpinned by sustained public capital expenditure on roads, railways, ports and logistics infrastructure; a broad-based revival in private consumption; moderating headline inflation; and a supportive monetary stance, with the Reserve Bank of India reducing the policy repo rate over the course of the year.
Two policy developments were particularly relevant to the Companys end markets. First, the rationalisation of the Goods and Services Tax structure ("GST 2.0") announced during the year reduced the effective tax incidence on a wide range of vehicles and improved affordability across segments. Second, continued production-linked incentive support for advanced automotive components and continued policy emphasis on localisation strengthened the case for domestic value addition in the auto component supply chain.
Together, lower financing costs, tax rationalisation and infrastructure-led freight demand created a constructive backdrop for the commercial vehicle industry, which is the Companys principal end market.
3. Industry Structure and Developments
3.1 Structural drivers for plastic components in vehicles
Beyond the volume cycle, the Company benefits from a durable structural trend: the rising polymer content per vehicle. Vehicle manufacturers continue to substitute metal with engineered plastics in interior, exterior and under-the-hood applications for four reasons:
Weight reduction, which improves fuel efficiency in internal combustion vehicles and directly extends range in electric vehicles, where every kilogram removed is regulatory and commercial value; Part consolidation and design freedom, allowing several metal parts and fasteners to be replaced by a single moulded assembly, reducing assembly time and warranty risk at the OEM; Corrosion resistance and durability, particularly relevant for commercial vehicles operating in demanding Indian duty cycles; Cost and tooling efficiency at scale, once a mould is amortised across a platforms production life.
For commercial vehicles specifically, the trend toward more comfortable, better-finished driver cabins - driven by driver-shortage economics and regulatory attention to cabin standards - is increasing both the number and the value of interior plastic parts per vehicle. This raises the addressable content per vehicle for suppliers who can deliver Class-A surface finish, complex geometry and plastic-metal hybrid assemblies.
3.2 Adjacent markets
The Companys non-automotive verticals are exposed to their own growth drivers. Industrial and electrical plastic parts benefit from capital expenditure in electrical equipment, switchgear and machinery. Solar connectors and junction-box components are exposed to Indias renewable energy build-out and domestic content requirements. Specialised moulded packaging for precision equipment is linked to electronics and instrumentation manufacturing under the broader electronics manufacturing push. The sheet metal vertical commissioned in January 2025 addresses the industrial fabrication market while backward-integrating the Companys own requirements.
3.3 Competitive landscape
The Indian plastic auto component sector is fragmented, with a small number of large organised players and a long tail of regional suppliers. Entry barriers for Tier-1 OEM supply are meaningful and rising: IATF 16949 certification, demonstrated PPM performance, tool room and design capability, proximity to customer assembly lines, ability to fund customer tooling and working capital, and the multi-year qualification cycle required to be nominated on a new platform. The Company competes on the strength of a three-decade supply relationship record, quality performance and design-optimisation capability rather than on price alone.
4. Company Overview
Premium Plast Limited ("Premium Plast" or "the Company") was incorporated in November 1995 and has, over three decades, grown from a two-machine operation into a Tier-1 supplier of precision plastic components to commercial vehicle original equipment manufacturers, and a supplier of industrial, electrical and specialised packaging components to a range of other industries. The Company was converted into a public limited company in December 2019 and its equity shares were listed on the NSE Emerge platform in 2024.
The Company designs, manufactures and supplies exterior components, interior cabin components and under-the-hood components using injection moulding, blow moulding and extrusion technologies, and maintains an in-house tool room and design-optimisation capability that allows it to work with customers from the concept stage through to series production.
4.1 Key facts
| Particulars | Details | |
| Incorporated | November 1995 (Vasai, Maharashtra) | |
| Listing | NSE Emerge – Symbol: PREMIUM | ISIN: INEOM1F01011 |
| Business | Plastic injection, blow and extruded components; sheet metal components | |
| Product portfolio | Over 600 components across automotive, industrial, electrical, solar and packaging applications | |
| Certifications | IATF 16949, ISO 9001:2015, ISO 14001:2015 | |
| Manufacturing footprint | Vasai (Maharashtra) – plastics; Pithampur (Madhya Pradesh) – two units; Vasai East – sheet metal unit (commissioned January 2025) | |
| Customer profile | Commercial vehicle OEMs (approximately 85–90% of automotive revenue), tractor OEMs, Tier-1 customers, industrial and electrical customers | |
| Segment reporting | The Company operates in a single reportable segment |
4.2 Business verticals
Automotive components
The Companys largest vertical. Products include steering wheels, instrument panel and interior trim parts, exterior body parts, air intake systems and ducts, fluid reservoirs and tanks (including brake oil and clutch oil tanks), logos and branding elements, lock assemblies and under-the-hood components. The Company supplies directly to commercial vehicle OEMs as a Tier-1 supplier and also supplies certain Tier-1 customers on a Tier-2 basis. The Company does not participate in the independent aftermarket: design ownership rests with the customer, and aftermarket distribution for these parts is contractually the customers domain.
Industrial and electrical plastic parts
Precision moulded components for electronic, electrical and solar applications, including connectors and junction-box components. This vertical carries a different customer set and a different order rhythm from automotive, and is being expanded through joint development work with existing and prospective customers.
Moulded industrial packaging
Specialised moulded packaging solutions for precision equipment, including protective packaging and bud boxes, supplied to instrumentation and equipment manufacturers.
Sheet metal components
Commissioned in January 2025 at Shiv Kubernetes Industrial Estate, Vasai East, this vertical manufactures components in aluminium, brass, copper and steel. It was established primarily as a backward-integration measure: a growing share of the Companys higher value-added products are plastic-metal hybrid assemblies for which metal inserts and brackets were previously bought out. The vertical also addresses external industrial demand. FY 2025-26 was its first full year of operation.
4.3 Competitive strengths
Three decades of continuous supply relationships with commercial vehicle OEMs, including award-recognised performance in supply chain management, new product development and zero-PPM quality. Tier-1 status with direct OEM access, which places the Company in the design and development loop rather than downstream of it. In-house design optimisation and tool room capability, enabling participation from the concept and prototyping stage. Breadth of process capability — injection moulding, blow moulding, extrusion and, since January 2025, sheet metal — supporting complex multi-material assemblies that single-process suppliers cannot offer. Strategic plant locations adjacent to customer assembly operations in Maharashtra and Madhya Pradesh, reducing freight cost and supporting just-in-time delivery.
5. Operational Review
5.1 Manufacturing and capacity
The Company operates plastics manufacturing units at Vasai (Maharashtra) and two units at Pithampur (Madhya Pradesh), together with the sheet metal unit at Vasai East.
During FY 2025-26 the Company substantially expanded its manufacturing asset base. Property, plant and equipment (net of depreciation) increased from ?2497.01 lakhs at 31 March 2025 to ?4035.40 lakhs at 31 March 2026, on additions of ?1902.13 lakhs during the year, with a further ?312.14 lakhs held as capital work-in-progress at the year end. This capacity was commissioned progressively through the year and, as is normal, carried its full cost — depreciation, power, manpower and commissioning expense — ahead of reaching steady-state utilisation.
5.2 Quality and delivery
The Company maintains IATF 16949, ISO 9001:2015 and ISO 14001:2015 certification. Quality performance is measured by customers on parts-per-million rejection and on-time delivery, and the Company has been recognised by customers for zero-PPM performance and for contribution to new product development on multiple occasions. Quality performance is a prerequisite for nomination on new platforms and is therefore a direct input into future revenue, not merely a cost-of-quality measure.
5.3 Footprint expansion after the balance sheet date
On 28 July 2026, subsequent to the year under review, the Company completed the acquisition of an under-construction plant situated on a leasehold plot of the Madhya Pradesh Industrial Development Corporation admeasuring 3,107.81 square mts at Khasra No 705, Village Bagroda, Tehsil Huzur, District Bhopal, Madhya Pradesh - 462 026, for a consideration of 99.00 lakh excluding stamp duty and registration charges. The transaction was not a related party transaction. The acquisition extends the Companys presence in the Madhya Pradesh industrial belt and provides built-up capacity for future programmes at a low entry cost.
6. Tooling and Mould Development
Because tooling is central to how a development supplier such as the Company creates future revenue, and because the level of tooling activity in FY 2025-26 differed from the two preceding years, management believes it is appropriate to set out in some detail how tooling works in this business, what happened during the year, and how shareholders may most usefully assess it.
6.1 How tooling works in our business
The Company is a development supplier, not a proprietary parts brand. Every component it manufactures originates in a dedicated mould built to a design owned by the customer. A mould has four defining characteristics:
Single-part specific. One mould produces one part. It cannot be reconfigured for a different component, and it has no alternative use or resale value outside the programme for which it was built. Capital intensive. Tool cost ranges from approximately 1 lakh for a small part to 1.5-2 crore for a large, complex, multi-cavity tool. Tool cost bears no fixed relationship to part price; an expensive tool may produce a low-value part and vice versa. Long-lived. A well-maintained mould has a useful life of approximately 10 to 20 years, frequently spanning the entire production life of the vehicle platform it serves. Customer-owned. The Company designs and builds the tool, carries it through the development cycle, and invoices it to the customer on part approval, at which point title passes to the customer. Component supply then continues for the life of the platform.
Two consequences follow, and both are structural rather than discretionary.
First, tooling activity is set by the customers product calendar, not by ours. A new mould is initiated only when an OEM freezes a new platform, variant or part and issues a nomination. The Company cannot and does not build tools speculatively — a mould with no nominated part is a stranded asset from the day it is completed. Restraint in this area is a capital allocation discipline, not an absence of activity.
Second, tooling is inherently lumpy. Development cycles run across financial year boundaries. For a company of the Companys size, with a concentrated customer base, it is normal — and close to arithmetically inevitable — that an intensive tooling build phase is followed by a phase in which the tooling already created is converted into series production revenue rather than added to. Tooling activity in any single twelve-month window is therefore a poor indicator of either the health of the business or the size of its future earnings base.
6.2 What happened in FY 2025-26
FY 2023-24 and FY 2024-25 were an unusually intensive tooling and development phase for the Company, undertaken in anticipation of new programmes with existing customers. This is visible directly in the balance sheet of those years. Inventories rose from 992.67 lakhs at 31 March 2023 to 1527.00 lakhs at 31 March 2024 and 1847.67 lakhs at 31 March 2025, with inventory days peaking at approximately 182 days, and cash flow from operations turned negative at 135.39) lakhs in FY 2024-25 as working capital was absorbed by tools under development.
FY 2025-26 was the conversion year for that cycle. Programmes tooled in the preceding two years moved into series production and began generating recurring component revenue. The financial evidence of that conversion is unambiguous:
| Indicator | FY 2024-25 | FY 2025-26 | Movement |
| Total Revenue from operations (? in lakhs) | 5703.28 | 7537.38 | +32.16% |
| (a) Product Sales | 5083.21 | 5974.68 | +17.54% |
| (b) Sales of Tools | 620.07 | 1562.70 | +152.02% |
| Inventories (? in lakhs) | 1847.67 | 1488.45 | ?359.22 lakhs released |
| Inventory turnover (revenue + average inventory) | 3.38 x | 4.52 x | +33.7% |
| Inventory days (on cost of materials consumed) | 182 |
113 |
69 days faster |
| Working capital days | 120 |
61 |
59 days faster |
| Trade receivables (? in lakhs) | 867.24 | 675.68 | ?191.56 lakhs released |
| Cash flow from operations (? in lakhs) | (135.39) | 1901.20 | ?2036.59 lakhs swing |
In summary: the Company grew revenue by 32.2%, released 359.22 lakhs of inventory and 191.56 lakhs of receivables, and generated 1901.20 lakhs of operating cash flow - in the same year. That combination is only achievable when tooling created in earlier periods is being monetised through volume production. A year in which little or no new tooling was added is precisely what a successful harvest year in this business looks like. Had the Company instead commenced a fresh heavy tooling build in FY26, inventories and working capital would have risen again and operating cash flow would have been materially weaker, notwithstanding identical component revenue.
6.3 Why this does not reduce the revenue-earning base
The Companys revenue-earning base is its installed bank of moulds - supporting over 600 components across automotive, industrial, electrical, solar and packaging applications - not the number of tools added in any particular twelve-month window. Because a mould runs for 10 to 20 years,
a tool built in FY 2022-23 or FY 2024-25 continues to earn revenue for the balance of the platforms production life. The installed base did not contract during FY 2025-26; it was more intensively utilised.
The appropriate analogy is capacity, not consumables. Building a mould is the equivalent of commissioning a production line; supplying components from it is the equivalent of running that line. Assessing the business by tools added in a single year, while disregarding the fact that utilisation of the existing tool bank and machine base rose materially and translated into 32.16% revenue growth, would be the equivalent of assessing a plant solely by the number of new lines commissioned during the year.
It is also worth noting that the economics of a mould strongly favour the incumbent supplier. Once a customer has funded a tool that sits on the Companys shop floor and has qualified the resulting part through PPAP, re-sourcing that part to another supplier requires either physically transferring the tool and re-qualifying the part, or funding an entirely new tool. In practice, as management has previously indicated, a Tier-1 nomination of this kind is generally a life-of-platform award. Each mould in the installed base therefore functions less like an annual sale and more like a multi-year annuity.
6.4 Where capital was deployed instead
Capital was not withdrawn from the business during FY 2025-26; it was directed to the binding constraint. Following an intensive tooling cycle, the constraint on revenue is not the availability of tools - it is the availability of press capacity, floor space, manpower and ancillary infrastructure to run the tools already in hand. Accordingly, during the year the Company:
Invested 1902.13 lakhs in additions to property, plant and equipment, taking the net block from 2497.01 lakhs to 4035.40 lakhs, an increase of 61.6%. Carried a further 312.24 lakhs in capital work-in-progress at the year end, representing capacity that will be commissioned in FY 2026-27; Continued deploying IPO proceeds toward the expansion of the Pithampur, Madhya Pradesh facility and the purchase of machinery, with 725.93 lakhs of the earmarked amount remaining to be deployed at 31 March 2026; Completed the first full year of operation of the sheet metal vertical, which backward-integrates metal inserts and sub-assemblies used in the Companys own value-added plastic-metal components; and Subsequent to the year end, in July 2026, acquired an under-construction plant at Village Bagroda, Bhopal, Madhya Pradesh for 99.00 lakh, adding built-up capacity at low entry cost.
Total capital expenditure during FY 2025-26 was 1901.13 lakhs, against a profit after tax of 687.30 lakhs and a net worth of 6027.69 lakhs. This is not the capital expenditure profile of a business in retreat; it is the profile of a business investing ahead of the demand it has already been nominated to serve.
6.5 Effect on the quality of earnings
Tooling revenue and component revenue are economically different. Tooling is substantially a pass-through: the tool is built largely to the customers account and invoiced at close to cost plus a development margin, while absorbing significant working capital for the duration of the build and delivering no recurring benefit once invoiced. Component supply, by contrast, is recurring, structurally higher-margin once the development cost has been recovered, and cash generative.
A revenue mix weighted towards component supply therefore improves the durability and cash quality of earnings, even where headline growth is unchanged. In FY 2025-26 the Company generated EBITDA of 1465.32 lakhs and converted approximately 130% of that EBITDA into operating cash flow, against negative conversion in the preceding year. Reported revenue growth of 32.16% in FY26 was achieved on component supply - the recurring part of the business - rather than on non-recurring tooling invoicing.
6.6 What management measures, and what shareholders may find more informative
Management does not treat "moulds built during the year" as a key performance indicator, because it is a coincident measure of the customers launch calendar rather than a measure of the Companys execution or of the durability of its earnings. The indicators management monitors internally, and which it believes are more informative for shareholders, are:
Parts nominated and start-of-production milestones achieved; Capacity utilisation across the plastics and sheet metal facilities; Revenue per installed machine and revenue per square foot of manufacturing area; Customer additions and share of business within existing customer accounts; Working capital days and the conversion of EBITDA into operating cash flow; Quality performance (PPM) and on-time delivery, which govern eligibility for future nominations.
On each of these measures, FY 2025-26 represented an improvement over FY 2024-25.
6.7 The forward tooling cycle
The level of tooling activity in FY 2025-26 reflects the phase of the development cycle rather than a narrowing pipeline. The Company continues to be engaged with existing customers on new platforms and variants, and with prospective customers across automotive, industrial and non-automotive segments, including electric vehicle applications, automotive bushings and solar connectors. Management has previously indicated that programmes then under development were expected to contribute meaningfully from FY 2026-27 onwards.
The Company has also put the funding for the next tooling cycle in place. Members approved, at the Extra-Ordinary General Meeting held on 19 January 2026, the issue of 43,44,900 convertible warrants at 37 each (face value 10 plus premium 27) aggregating 1607.61 lakhs on a preferential basis to the promoter and to strategic non-promoter investors, expressly for the purpose of meeting long-term funding requirements for capital expenditure, working capital and general corporate purposes. The promoter subscribed to the substantial majority of the issue, which management regards as a direct alignment of promoter capital with the Companys stated growth plan. 401.90 lakhs had been received as subscription money as at 31 March 2026 and the allotment was completed after the balance sheet date but before the date of the auditors report.
A balanced observation
For completeness, management records the following. Tooling activity is a leading indicator of future component revenue, and a sustained, multi-year absence of new tooling would in due course constrain growth. Managements assessment, based on customer engagement and the programme pipeline, is that FY 2025-26 represents the trough of a normal development cycle rather than a structural change in the Companys position with its customers. The Company will continue to report on programme wins and new tooling as they are confirmed, subject to the confidentiality obligations owed to customers, which in this industry restrict the naming of platforms and the disclosure of programme values prior to launch.
7. Financial Review
The financial results discussed below are the audited standalone financial results for the year ended 31 March 2026, approved by the Board of Directors on 31 May 2026 and audited by M/s VRCA & Associates, Chartered Accountants, who issued an unmodified opinion. The Company, being listed on the SME platform, prepares its financial statements under the Accounting Standards specified under Section 133 of the Companies Act, 2013 and is exempt from mandatory adoption of Ind AS. Amounts in the tables below are in ? lakh; amounts in the narrative are also in ? lakhs.
7.1 Statement of profit and loss
| Particulars (? lakh) | FY 2025-26 | FY 2024-25 | Change | Change % |
| Revenue from operations | 7,537.38 | 5,703.28 | 1,834.10 | +32.16% |
| Other income | 45.10 | 21.35 | 23.75 | +111.22% |
| Total income | 7,582.48 | 5,724.63 | 1,857.85 | +32.45% |
| Cost of materials consumed | 4,826.35 | 3,575.68 | 1,250.67 | +34.98% |
| Operating cost | 710.10 | 397.99 | 312.11 | +78.42% |
| Employee benefits expense | 388.85 | 297.25 | 91.60 | +30.81% |
| Other expenses | 191.86 | 213.30 | (21.44) | (10.05)% |
| EBITDA | 1,465.32 | 1,240.40 | 224.92 | +18.13% |
| EBITDA margin (% of total income) | 19.32% | 21.67% | (235) bps | - |
| Finance costs | 162.92 | 154.15 | 8.77 | +5.69% |
| Depreciation and amortisation | 363.74 | 223.88 | 139.86 | +62.47% |
| Profit before tax | 938.66 | 862.39 | 76.27 | +8.84% |
| Tax expense (current and deferred) | 251.36 | 217.04 | 34.32 | +15.81% |
| Profit after tax | 687.29 | 645.34 | 41.95 | +6.50% |
| PAT margin (% of total income) | 9.06% | 11.27% | (221) bps | - |
Revenue
Revenue from operations grew 32.16% to 7537.38 lakhs, the highest in the Companys history and the second consecutive year of growth well ahead of the underlying commercial vehicle industry, which grew 12.6% by volume. Growth was driven by three factors: the movement into series production of programmes tooled in FY 2023-24 and FY 2024-25; higher realisation per component as the Company continued to move toward larger, more complex and higher value-added parts; and the first full year of contribution from the sheet metal vertical commissioned in January 2025.
The first half of the year was the stronger of the two, with revenue from operations of 3850 lakhs in H1 against 3687.38 lakhs in H2. H1 revenue grew 67% year-on-year, reflecting a soft H1 in the prior year, while H2 grew 9.2% on a much higher base.
Margins
EBITDA increased 18.13% to 1465.32 lakhs, while the EBITDA margin moderated by 235 basis points to 19.32% of total income. Management draws attention to the composition of that movement:
The margin effect of newly commissioned capacity is visible in the half-yearly progression: EBITDA margin was 21.78% in H1 FY26 and 16.75% in H2 FY26, as assets capitalised during the year began absorbing overhead and depreciation before contributing full revenue. Management expects this to normalise as utilisation of the FY26 capacity additions rises through FY 2026-27.
Depreciation, finance cost and tax
Depreciation and amortisation rose 62.47% to 363.74 lakhs, a direct and expected consequence of the 1902.13 lakhs of additions to property, plant and equipment during the year. Finance costs rose only 5.69% to 162.92 lakhs despite the larger asset base, as growth was funded primarily from internal accruals, IPO proceeds and preferential issue subscription money rather than from debt. The effective tax rate was 26.78% against 25.17%, principally on account of a higher deferred tax charge arising from the timing difference on accelerated depreciation.
Profit
Profit before tax grew 8.84% to 938.66 lakhs and profit after tax grew 6.5% to 687.30 lakhs. The gap between revenue growth of 32.2% and profit growth of 6.5% is explained almost entirely by the two non-cash and capacity-related items discussed above - the step-up in depreciation and the overhead cost of capacity commissioned but not yet fully utilised. Adjusted for the increase in depreciation alone, profit before tax would have grown approximately 25%.
7.2 Balance sheet
| Particulars (? lakh) | As at 31.03.2026 | As at 31.03.2025 | Change | Change % |
EQUITY AND LIABILITIES |
||||
| Share capital | 1,909.71 | 1,909.71 | - | - |
| Reserves and surplus | 4,117.97 | 3,430.68 | 687.29 | +20.03% |
| Net worth | 6,027.68 | 5,340.39 | 687.29 | +12.87% |
| Share application money pending allotment | 401.90 | - | 401.90 | - |
| Long-term borrowings | 18.07 | 196.62 | (178.55) | (90.81)% |
| Deferred tax liabilities (net) | 184.20 | 107.60 | 76.60 | +71.19% |
| Short-term borrowings | 590.80 | 365.25 | 225.55 | +61.75% |
| Trade payables | 717.61 | 771.48 | (53.87) | (7.0)% |
| Other current liabilities | 179.29 | 640.12 | (460.83) | (71.99)% |
| Short-term provisions | 111.65 | 186.63 | (74.98) | (40.18)% |
TOTAL |
8,231.20 |
7,608.10 |
623.10 |
+8.2% |
ASSETS |
||||
| Property, plant and equipment | 4,035.40 | 2,497.01 | 1,538.39 | +61.61% |
| Capital work-in-progress | 312.24 | - | 312.24 | - |
| Non-current investments | 602.35 | 1,024.35 | (422.00) | (41.20)% |
| Inventories | 1,488.45 | 1,847.67 | (359.22) | (19.44)% |
| Trade receivables | 675.68 | 867.24 | (191.56) | (22.09)% |
| Cash and bank balances | 424.77 | 29.96 | 394.81 | +1,317.79% |
| Short-term loans and advances | 632.26 | 1,341.87 | (709.61) | (52.88)% |
| Other current assets | 60.06 | - | 60.06 | - |
TOTAL |
8,231.20 |
7,608.10 |
623.10 |
+8.19% |
The most significant feature of the balance sheet is the shift in the composition of assets. Total assets grew only 8.19%, but within that total, ?2085.00 lakhs migrated out of working capital and financial investments and into productive fixed assets. Inventories, trade receivables and short-term loans and advances together fell by 1260.38 lakhs, and non-current investments (representing unutilised issue proceeds) fell by 422.00 lakhs, while property, plant and equipment and capital work-in-progress rose by 1851.00 lakhs and cash rose by 394.81 lakhs.
Net worth grew 12.87% to 6027.69 lakhs entirely from retained earnings, no dividend having been declared. Book value per share, computed on 1,90,97,100 equity shares and excluding warrant subscription money, rose to approximately 31.56 from 27.96.
The Company remains conservatively financed. Total borrowings at the year end were 608.87 lakhs against a net worth of 6027.69 lakhs, a debt-to-equity ratio of approximately 0.10 times. Long-term borrowings were reduced by 178.55 lakhs during the year and the auditors have confirmed that no term loan was taken during the year and none was outstanding. Against gross borrowings of 608.87 lakhs, the Company held cash and bank balances of 424.77 lakhs and non-current investments of 602.5 lakhs, leaving the Company in a net cash position at the year end; shareholders should note, however, that a portion of these investments represents issue proceeds already earmarked for the Pithampur expansion.
7.3 Cash flow
| Particulars (? lakh) | FY 2025-26 | FY 2024-25 | Change |
| Operating profit before working capital changes | 1,465.32 | 1,240.41 | 224.91 |
| Net cash from / (used in) operating activities | 1,901.20 | (135.39) | 2,036.59 |
| Net cash used in investing activities | (1,792.37) | (2,474.37) | 682.00 |
| Net cash from financing activities | 285.98 | 2,619.28 | (2,333.30) |
| Net increase in cash and cash equivalents | 394.81 | 9.52 | 385.29 |
| Cash and bank balances at year end | 424.77 | 29.96 | 394.81 |
Cash flow is where the years operating progress is clearest. Operating cash flow swung from an outflow of 135.39 lakhs to an inflow of 1901.20 lakhs - a movement of 2036.59 lakhs - driven by 1465.32 lakhs of operating profit before working capital changes and 666.00 lakhs of net working capital release. EBITDA-to-operating-cash-flow conversion was approximately 130%.
Investing outflow of 1792.37 lakhs comprised 1902.13 lakhs of additions to property, plant and equipment and 312.24 lakhs of capital work-in-progress, partly offset by 422.00 lakhs realised from investments. Financing inflow of 285.98 lakhs comprised 401.90 lakhs of preferential issue subscription money and a 225.55 lakhs increase in working capital facilities, less 178.55 lakhs of unsecured loan repayment and 162.92 lakhs of interest paid.
Free cash flow (operating cash flow less capital expenditure) was negative 313.00 lakhs, against negative 1585.00 lakhs in the prior year. Management regards a modest free cash outflow during a period of deliberate capacity expansion as appropriate, and notes that the operating cash flow generated during the year funded approximately 86% of the years capital expenditure.
7.4 Key financial ratios
The following disclosure is made pursuant to Schedule V (Part B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Explanations are provided for movements of 25% or more, and additionally where management believes an explanation aids understanding.
| Ratio | FY 2025-26 | FY 2024-25 | Change | Explanation |
| Debtors turnover (times) | 9.77 | 8.52 | +14.7% | Improved collection cycle; debtor days reduced. |
| Inventory turnover (times) | 4.52 | 3.38 | +33.7% | Conversion of tooling and development inventory built up in FY24 and FY25 into series production, releasing ?359.00 lakhs of inventory while revenue grew 32.2%. |
| Interest coverage (times) | 6.76 | 6.59 | +2.6% | Higher operating profit; borrowings broadly unchanged. |
| Current ratio (times) | 2.05 | 2.08 | (1.4)% | Substantially unchanged; liquidity comfortable. |
| Debt-equity (times) | 0.10 | 0.11 | (3.8)% | Retained earnings accretion; long-term borrowings reduced. |
| Operating profit margin (EBIT %) | 14.53% | 17.76% | (323) bps | Higher manufacturing overhead and a 62.5% increase in depreciation on capacity commissioned during the year and not yet fully utilised. |
| Net profit margin (%) | 9.06% | 11.27% | (221) bps | As above, together with a higher effective tax rate of 26.78% (FY25: 25.17%). |
| Return on net worth (%) | 11.40% | 12.08% | (68) bps | Full-year effect of the enlarged equity base following the initial public offer in September 2024, partly offset by higher profit. |
| Return on capital employed (%) | 16.61% | 18.01% | (140) bps | Capital deployed during the year in assets that will contribute revenue from FY 2026-27. |
| Book value per share (?) | 31.56 | 27.96 | +12.9% | Retained earnings; no dividend declared. |
8. Capital Allocation and Funding
8.1 Utilisation of IPO proceeds
The Companys statutory auditors have certified the utilisation of the proceeds of the initial public offer as at 31 March 2026 as follows:
| Object of the issue (? lakh) | As per prospectus | Utilised to 31.03.2026 | Unutilised |
| Issue related expenses | 310.51 | 310.51 | - |
| Expansion of manufacturing facility at Pithampur, Madhya Pradesh and purchase of machinery | 1,655.44 | 929.51 | 725.93 |
| Rooftop on-grid solar power plant at existing facility | 104.40 | 104.40 | - |
| Prepayment / repayment of certain borrowings | 223.12 | 223.12 | - |
| General corporate purposes | 326.07 | 326.07 | - |
| Total gross proceeds | 2,619.54 | 1,893.61 | 725.93 |
| Balance lying in monitoring / escrow account | - | - | 12.95 |
There has been no deviation or variation in the use of proceeds from the objects stated in the prospectus. The unutilised amount of ?725.93 lakhs is earmarked for the balance of the Pithampur expansion and machinery purchase and is expected to be deployed in FY 2026-27.
8.2 Preferential issue of convertible warrants
At the Extra-Ordinary General Meeting held on 19 January 2026, members approved by special resolution the issue of 43,44,900 convertible warrants of face value ?10 each at a price of ?37 each (including a premium of ?27), aggregating ?1607.61 lakhs, on a preferential basis to the promoter and to strategic non-promoter investors. The relevant date for pricing was 19 December 2025, and the issue price of ?37 was at or above the floor price computed under Regulation 164(1) of the SEBI (ICDR) Regulations, 2018.
Of the total, 33,00,000 warrants were offered to Mr. Chetan Nagendra Dave, Promoter and Managing Director. Each warrant carries the right to subscribe to one equity share within 18 months of allotment, with 25% of the consideration payable on allotment and the balance 75% on exercise. The objects of the issue are to meet the long-term funding requirements of the Company for capital expenditure, working capital and general corporate purposes.
An amount of ?401.90 lakhs had been received as subscription money as at 31 March 2026 and is disclosed as share application money pending allotment. The allotment was completed after the balance sheet date but before the date of the auditors report, and the auditors have drawn attention to this by way of an Emphasis of Matter, confirming that the monies were utilised or held in compliance with the stated objects. Assuming full conversion, promoter shareholding would increase from 68.73% to approximately 70.07%.
9. Opportunities
10. Threats, Risks and Concerns
The Company operates in a competitive and cyclical industry. The principal risks identified by management, and the mitigating measures in place, are set out below.
| Risk | Description | Mitigation |
| Customer concentration | A substantial proportion of revenue is derived from a small number of customers, with the top ten customers historically accounting for over 95% of revenue and a single commercial vehicle group accounting for a majority of automotive revenue. | Three-decade relationship depth and life-of-platform nominations provide stability. Qualification with additional OEM, Tier-1 and industrial customers is in progress, and non-automotive verticals are being expanded. |
| Cyclicality of the commercial vehicle industry | Commercial vehicle demand is closely linked to freight rates, infrastructure spending, interest rates and the broader capital expenditure cycle, and has historically been volatile. | Diversification into industrial, electrical, solar and packaging applications; presence across medium, heavy and small commercial vehicle platforms and tractors; and a low fixed-cost gearing with debt-to-equity of 0.10 times. |
| Raw material price volatility | Polymer prices are linked to crude oil and to global petrochemical supply, and metal prices to global commodity cycles. | Contractual price adjustment mechanisms with customers, typically with a one to two quarter lag on either side; material cost as a percentage of revenue improved 86 basis points in FY26. |
Risk
| Risk | Description | Mitigation |
| Dependence on customer product cycles | New tooling and therefore new component revenue is initiated only when customers freeze new platforms or variants. The timing is outside the Companys control and is inherently lumpy. | Early engagement in customer design and R&D activity; breadth of process capability across injection, blow, extrusion and sheet metal; and a funded balance sheet able to respond quickly when nominations are received. See Section 6 for a fuller discussion. |
| Absence of aftermarket and design ownership | Design ownership rests with the customer and the Company does not participate in the independent aftermarket, so growth is linked to customer volumes. | Increasing content per vehicle and per platform; expanding into segments where the Company can develop proprietary or patented products over time. |
| Capacity absorption risk | Capacity commissioned in FY25 and FY26 carries depreciation and overhead ahead of full utilisation, compressing margins in the interim. | Capacity was added against nominated programmes rather than speculatively. Management expects utilisation to improve through FY 2026-27; progress will be visible in the operating margin. |
| Working capital intensity | Development and tooling cycles can absorb significant working capital, as experienced in FY24 and FY25. | Working capital days reduced from approximately 120 to 61 in FY26; operating cash flow of ?1901.20 lakhs; sanctioned working capital limits in place. |
| Talent and skilled manpower | Tool room, design and process engineering skills are specialised and in demand. | Long-tenure workforce, internal training and continued investment in engineering capability. |
| Regulatory and compliance risk | Emission, safety and environmental regulation continues to evolve, as do listing and disclosure obligations. | IATF 16949 and ISO 14001 systems; internal audit function; company secretarial and compliance oversight. The Company has strengthened its filing processes following observations raised by the Exchange on the FY26 results submission, which were clerical in nature and did not affect the reported figures or the audit opinion. |
11. Internal Control Systems and their Adequacy
The Company maintains an internal control system commensurate with the size, scale and nature of its operations, designed to provide reasonable assurance regarding the reliability of financial reporting, the safeguarding of assets, the prevention and detection of fraud and error, adherence to Company policies and compliance with applicable laws and regulations.
For the year ended 31 March 2026, the statutory auditors have reported that the Company has, in all material respects, adequate internal financial controls with reference to financial statements and that such controls were operating effectively. The auditors have also confirmed that the accounting software used by the Company has an audit trail (edit log) facility which operated throughout the year for all relevant transactions, and that no instance of the audit trail being tampered with was observed.
The Company has an internal audit function whose reports are considered by the statutory auditors in determining the nature, timing and extent of their audit procedures. The auditors have further reported that: proper records of property, plant and equipment and intangible assets are maintained and physical verification was carried out during the year with no material discrepancies; inventories were physically verified with no discrepancy of 10% or more in any class of inventory; title deeds of immovable properties are held in the name of the Company; statutory dues have been deposited regularly; there has been no default in repayment of borrowings; no fraud by or on the Company was noticed or reported; and all related party transactions are in compliance with Sections 177 and 188 of the Companies Act, 2013 and duly disclosed.
The Company has fully spent the amount required to be spent towards Corporate Social Responsibility for the year, with no unspent amount requiring transfer.
12. Human Resources and Industrial Relations
The Company regards its workforce as the foundation of its quality record. The manufacturing model depends on skilled tool room technicians, moulding operators, quality engineers and process engineers, many of whom have long tenures with the Company. During the year the Company continued to add manpower to support the new capacity at Pithampur and the sheet metal unit at Vasai East, and continued to invest in training in process control, quality systems and workplace safety. Industrial relations remained cordial throughout the year and there was no loss of production on account of any industrial relations matter.
13. Environment, Health, Safety and Sustainability
The Company holds ISO 14001:2015 certification for its environmental management system. Sustainability initiatives, several of which also deliver direct cost benefits, include:
Recycling and reuse of residual and runner plastic back into the production process, reducing both material cost and waste to landfill; Operation of zero-discharge units at the manufacturing facilities; Installation of rooftop on-grid solar power at the existing manufacturing facility, funded from IPO proceeds at a cost of 104 lakhs and fully deployed, reducing grid dependence and long-term energy cost; Contribution to customer lightweighting programmes, in which substitution of metal by engineered plastics reduces vehicle weight and therefore lifetime fuel consumption and emissions; Maintenance of workplace safety systems and periodic safety training across all units.
14. Cautionary Statement
Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions in the domestic market, demand and supply conditions in the commercial vehicle and industrial sectors, input price volatility, changes in customer product plans, changes in government regulations and tax regimes, litigation and labour relations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent development, information or event.
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