PML FY26: Alloys scale-up lifts growth, while Relays and Quantum await ramp-up

Permanent Magnets Limited reported a stronger Q4FY26 and a steadier full-year FY26, driven largely by a visible scale-up in its Alloys division. On a standalone basis, revenue from operations grew 13% year-on-year to INR 225.46 crore in FY26. Q4FY26 revenue from operations rose 47% year-on-year to INR 66.54 crore, supported by higher Alloys volumes along with steady demand in electricity meters and automotive applications.

Profitability improved for the year. Standalone EBITDA (excluding other income) increased 43% to INR 39.01 crore, and the EBITDA margin improved to 17% from 14% in FY25, which management attributed to a better product mix and operating leverage. In Q4FY26, EBITDA margin was 15%, better than the year-ago quarter but lower than Q3FY26.

FY26 performance in numbers

The company reported both standalone and consolidated statements in the investor presentation. On a consolidated basis, FY26 revenue from operations was INR 226.24 crore, up 10% year-on-year. Consolidated FY26 net profit (including OCI) was INR 15.07 crore, down 4% year-on-year, indicating that the bottom line trend differs between standalone and consolidated results.

Alloys: the visible growth lever in Q4

Management repeatedly pointed to the Alloys division as the key driver behind the Q4 acceleration. The investor presentation stated that a new furnace in the Alloys division was commercialised in Q4FY26 and contributed during the quarter. In the earnings call, management added operating context: the furnace was installed in January and utilisation was around 80% to 90% up to the end of the financial year.

The company also indicated the near-term market focus. When asked which end-markets would drive the ramp-up, management said the current emphasis is Oil and Gas, where production has already begun, while engagement with aerospace customers is also underway.

A point worth noting from the call is that the Q4 product mix in Alloys leaned toward virgin metal alloy sales, which management acknowledged carry slightly lower margins than scrap-based alloy sales. The mix in FY27 may vary depending on the nature of customer orders.

Smart metering: value addition through Relays, but timelines moved

A central theme in PML’s strategy is moving up the smart meter value chain. The presentation highlights that adding assemblies such as relays can expand addressable market size and increase value capture compared to supplying only components like shunts and CT-related parts.

However, the Relays project has seen a schedule slip. Management acknowledged on both the presentation commentary and the call that the project is behind the original timeline. Commercial ramp-up is now expected from H2FY27, as testing and customer approvals have taken longer than initially anticipated.

On the call, management shared what the first phase could look like. The company is setting up the relays plant in phases, beginning with a 5 million unit capacity and potentially expanding to 10 million units based on orders. For FY27, management indicated a relay revenue range of around INR 25 crore to INR 50 crore, while also stating that the actual outcome will depend on the pace of customer adoption and order conversion.

Quantum Magnetics: roadmap intact, FY26 disrupted by China restrictions

PML’s rare earth magnet initiative sits under Quantum Magnetics, for which the investor presentation lays out a phased roadmap to localise NdFeB manufacturing, stepping backward from finished magnets to raw materials.

But FY26 had a hard operational constraint. Management stated in the earnings call that there was no revenue in FY26 from this business because of restrictions from China for export of magnets, preventing execution of planned assembly sales. The company expects revenues to begin in FY27.

The next milestone discussed is Phase 2 capex, covering block cutting, machining, and surface treatment. The investor presentation indicated implementation expected in Q3FY27, while the call suggested a FY27 implementation window, after which sales would start. Management also mentioned that future investments for powder-to-block manufacturing are under planning.

Capex and growth outlook

Management offered explicit FY27 guidance on the call. The company indicated revenue growth of 20% to 30% depending on the orders it wins, and EBITDA margins broadly in the 15% to 18% range.

Capex plans were also discussed. Management indicated a potential capex of INR 40 crore to INR 50 crore for PML’s standalone business and another INR 40 crore to INR 50 crore for Quantum. The CFO added that around INR 20 crore out of the PML capex plan would be spent to set up a new factory to consolidate six plants into one location, and the land has already been acquired.

On funding, management said the final plan is not yet decided and may include a combination of debt and equity.

What to track from here

PML’s FY26 story is a mix of delivered execution and pending ramp-ups. The Alloys division showed clear traction in Q4FY26, supporting growth and margin improvement on a standalone basis. At the same time, the Relays project has shifted to H2FY27 for commercial ramp-up, and Quantum Magnetics had zero FY26 revenue due to external supply restrictions, with the next commercial steps tied to Phase 2 implementation.

The next year is likely to be judged on three operational checkpoints: the pace of Alloys scaling beyond the initial furnace utilisation, customer approvals and order conversion in Relays, and the successful completion of Quantum’s Phase 2 capex translating into sales in FY27. Management’s guidance of 20% to 30% revenue growth and mid-teens EBITDA margin provides a clear framework for monitoring that execution.