Poojaa Precision H1 FY27: Revenue Rises 68% YoY

H1 performance reflects higher scale

Poojaa Precision Engineering reported revenue from operations of ₹210.08 crore for H1 FY27, up 68% year-on-year from about ₹124.9 crore in H1 FY26. EBITDA rose 73% year-on-year to ₹39.6 crore, while net profit increased 88% to ₹24.92 crore. The company reported an EBITDA margin of 19% and a PAT margin of 12% for the period ended September 30, 2026. The results were approved by the board on October 22, 2026. The aluminium die-casting component maker subsequently held its H1 FY27 performance conference call on October 23. It has also made the audio recording of that call available on its investor website under its Regulation 30 disclosure.

Revenue growth was supported by changing mix

Management linked the growth to automotive, EV and non-automotive demand. Automotive accounted for about 62% of H1 FY27 revenue, while non-auto contributed about 38%. This compares with a 72:28 auto-to-non-auto mix in FY26. The energy business generated about ₹48 crore in H1 FY27, compared with about ₹17 crore in the corresponding period a year earlier and approximately ₹31 crore in all of FY26. Management said this business is largely tender-based and includes work associated with Fortune 500 customers, whose names are under confidentiality agreements.

The company said EV revenue rose 80% year-on-year to about ₹25 crore. Its stated long-term mix objective is to build roughly equal contributions from automotive, EV and engineering businesses. This would reduce the relative concentration of conventional automotive revenue, although the company did not provide a timeline for achieving that target. Customer count rose to 58 in H1 FY27 from 39 in FY24.

Margins held despite a lower gross margin

EBITDA margin remained around 19%, even as gross margin declined to about 53% from roughly 59% to 61% in H1 FY26, based on the disclosures. Management attributed the change primarily to a shift towards larger components weighing 40 kg to 80 kg, compared with components in the 1 kg to 9 kg range earlier. Larger parts carry a different raw-material and processing profile.

Revenue per tonne increased by about 39% to 40% in H1. Management said around 8 to 9 percentage points of that rise came from raw-material escalation, with the balance coming from product mix. Aluminium prices moved from about $2,800 per tonne to about $3,300 per tonne, according to the call highlights. The company said the full raw-material increase is passed through to customers and therefore does not affect its profit and loss account. Management expects fixed costs related to the new plant to be absorbed already, with future costs largely variable, but gave no specific margin target.

Order book provides execution visibility

Poojaa Precision reported an order book of about ₹1,180 crore. The order book comprises approximately 52% automotive applications, including two-wheelers, three-wheelers, passenger vehicles and commercial vehicles, with engineering and non-auto accounting for the remaining 48%. Management said new business additions have been about ₹160 crore to ₹180 crore annually over the past three years.

The company also cited a request-for-quotation pipeline above ₹2,000 crore and indicated an 8% to 10% strike rate. A quotation pipeline is not equivalent to confirmed orders, and conversion depends on customer awards. Management outlined a revenue path of about ₹630 crore to ₹640 crore in the next year, ₹800 crore to ₹820 crore in the following year, and about ₹1,000 crore by FY30. It has guided for about 50% revenue growth in FY27 over FY26 revenue of ₹294 crore, followed by 30% to 35% CAGR in FY28 through FY30.

Unit III expansion is central to the plan

The Unit III expansion at Khed, Pune, is intended to support the company’s turnover objective. About 20% of the additional capacity, or roughly 110 tonnes per month, has already been added. Full machine deliveries are targeted by September 2027. On completion, melting capacity is expected to increase from about 13,800 MTPA to 28,800 MTPA. Casting and machining capacity is planned to rise from approximately 6,000 MTPA to 12,600 MTPA.

Current utilisation was around 82% after including expanded capacity, management said. Monthly capacity was about 610 tonnes and September output was approximately 480 tonnes. The company raised about ₹159.8 crore through its IPO, though it did not disclose the total Unit III capex on the call. Management said IPO proceeds are being deployed according to schedule.

Working capital and balance sheet position

Inventory stood at around ₹60 crore against sales of ₹42 crore in the preceding month. This included die stock of about ₹20 crore. Management said dies account for roughly 7% to 8% of revenue, meaning some level of die inventory will remain necessary. It expects the normal inventory cycle of about one month to reduce further.

The company reported debt-to-equity of 0.08 times, a current ratio of 4.18 times, ROCE of 36% and ROI of 22%. Management said it plans to repay the entire loan by the second quarter, which would leave minimal finance cost thereafter. These metrics point to a low-debt balance sheet while the company continues its capacity build-out.

Defence, aerospace and new materials remain early-stage

Hindustan Aeronautics has approved Poojaa Precision for prototype parts, while the Indian Air Force has completed an audit and issued a vendor code, according to management. Commercial production will require further certifications and is at least four years away, with initial volumes expected to be low. Defence production is planned from Unit III, while aerospace work is envisaged from Unit IV, also about four years away.

The company has started prototyping magnesium components and expects to finalise its magnesium and aluminium-magnesium strategy over the next two years. These initiatives should be viewed separately from the current revenue base because they remain in development or qualification stages. At present, the company serves exports indirectly through Indian OEMs and expects direct OEM exports over the coming years.

Operations remain focused on integrated manufacturing

Poojaa Precision said its integrated capabilities include in-house tooling, casting, machining, surface treatment and testing. Its testing infrastructure includes coordinate measuring machines, spectrometers, radiographic equipment and helium leak testing. The process mix is about 70% gravity die casting, 25% low-pressure die casting and 5% high-pressure die casting. High-pressure die casting is retained mainly as a customer-support process.

About 10% of revenue-related work is offloaded within other expenses, according to management. Outsourcing is used for simple components and surface treatment, while critical machining remains in-house. The company sources about 40% of alloy as primary material for in-house conversion and buys the remaining 60% as ready-made alloy from customer-validated suppliers. Management said technology, manufacturing capability and infrastructure, rather than price alone, are key factors in customer wins.

What investors will track next

The H1 FY27 numbers show sharp year-on-year growth, sustained EBITDA margin and a broader non-auto contribution. The order book and Unit III timeline are central to management’s revenue path towards about ₹1,000 crore of annual turnover by FY30. Gross-margin movement, inventory levels, capacity ramp-up and conversion of the RFQ pipeline will remain relevant operational indicators. Investors will also monitor progress on planned debt repayment and the completion of machine deliveries by September 2027. Defence, aerospace and magnesium programmes remain longer-term opportunities rather than near-term volume drivers.