Any current/future new fundraising through debt or equity?

For the Quantum Magnetics subsidiary, Permanent Magnets Limited is planning a phased capital expenditure for expanding production capacity up to 5,000 tons by FY 2030, requiring an investment of INR 550 to INR 750 crores. Regarding funding this expansion, the company is still discussing options between debt, equity, or a combination to finance the capex. In earlier phases, such as the pilot plant setup (500 tons capacity), the capex is estimated between INR 50 crores to INR 100 crores. No specific current fundraising announcements were made, but future equity infusion in joint ventures will be

Any current/future capex/capital investment/strategic investment?

Quantum Magnetics Phase-wise Capex Plan: - Total planned revenue by FY 2030: INR 3,700 crores. - Total investment required: INR 550 crores to INR 750 crores for 5,000 tons production. - Phase 1 (Pilot plant of 500 tons) capex: INR 50 crores to INR 100 crores. - Phase 2: Block cutting facility expected by March (year not specified, likely 2026). - Phase 3: Full-scale manufacturing of blocks in India targeted around 2027. Funding Strategy: - Plans to fund through a mix of debt and equity in the subsidiary. Additional Investment: - Setting up new furnace for alloy production in Ja

Future growth expectations in sales/revenue/volumes?

FY 2025-26 expected growth: ~10-15% revenue growth. FY 2026-27 outlook: 20-30% growth expected, mostly from alloy business expansion and some EV orders. Quantum Magnetics target: INR 3,700 crores revenue by FY 2030 (5,000 tons production capacity). Pilot plant (500 tons) expected revenue: INR 300-350 crores. Alloy business FY 27 revenue potential: INR 40-70 crores, with capacity fully booked or partially booked. Relay business: Commercial larger volume sales anticipated from mid-FY 27; currently in testing phase. EV-related products: Stable demand; some growth expected if pilot projects succee

Future growth expectations in earnings/operating earnings/profits/EPS?

**Revenue Growth:** - Expecting 10% to 15% growth for the current fiscal year (FY26). - Anticipating 20% to 30% growth in FY27, driven mainly by alloy and EV-related orders. **EBITDA Margins:** - Current margins at around 12%-13%. - Expectation to improve to 15%-18% EBITDA margin overall next year (FY27) depending on product mix. - EV and alloy businesses expected to contribute higher margins (15%-40% for EV-related products). **Profitability:** - Margins likely to remain stable around 16%-18% EBITDA with growth in alloy and relay segments. - EBITDA of around INR550 crores ta

Current/ Expected Orderbook/ Pending Orders?

Alloy Business: Partially booked for new 750-ton capacity; visibility from customers with orders generally given 1-2 months in advance. Current demand strong; running at full capacity already. Expected revenue in FY '27: INR40-70 crores, can increase with more customers. Relay Business: Samples submitted to 3-4 companies; in testing and certification phase. Customers doing field tests; commercial volumes expected from mid FY '27 onwards. Quantum Magnetics (Subsidiary): Orders in hand for Phase 1 expansion but unable to supply due to import restrictions (now relaxed). Expected production st

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Permanent Magnets LtdQ3 FY26Electrical Equipment

Permanent Magnets Ltd Q3 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹875P/E: 48.9Market Cap: ₹776 CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→FY 2025-26 expected growth: ~10-15% revenue growth.
→FY 2026-27 outlook: 20-30% growth expected, mostly from alloy business expansion and some EV orders.
→Quantum Magnetics target: INR 3,700 crores revenue by FY 2030 (5,000 tons production capacity).
→Pilot plant (500 tons) expected revenue: INR 300-350 crores.
→Alloy business FY 27 revenue potential: INR 40-70 crores, with capacity fully booked or partially booked.
→Relay business: Commercial larger volume sales anticipated from mid-FY 27; currently in testing phase.
→EV-related products: Stable demand; some growth expected if pilot projects succeed; standard modules launched with early sales.
→Overall EBITDA margins expected at 16-18%, reflecting growth and product mix changes.

Margin guidance

Category 3

→**Revenue Growth:**
→ - Expecting 10% to 15% growth for the current fiscal year (FY26).
→ - Anticipating 20% to 30% growth in FY27, driven mainly by alloy and EV-related orders.
→**EBITDA Margins:**
→ - Current margins at around 12%-13%.
→ - Expectation to improve to 15%-18% EBITDA margin overall next year (FY27) depending on product mix.
→ - EV and alloy businesses expected to contribute higher margins (15%-40% for EV-related products).
→**Profitability:**
→ - Margins likely to remain stable around 16%-18% EBITDA with growth in alloy and relay segments.
→ - EBITDA of around INR550 crores targeted by FY30 with a revenue target of INR3,700 crores for the Quantum Magnetics segment.
→**EPS:**
→ - No specific EPS forecast given, but growth in revenues and margin expansion implies positive EPS trajectory aligned with operational improvements.

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Fundraise plans

Yes

→For the Quantum Magnetics subsidiary, Permanent Magnets Limited is planning a phased capital expenditure for expanding production capacity up to 5,000 tons by FY 2030, requiring an investment of INR 550 to INR 750 crores.
→Regarding funding this expansion, the company is still discussing options between debt, equity, or a combination to finance the capex.
→In earlier phases, such as the pilot plant setup (500 tons capacity), the capex is estimated between INR 50 crores to INR 100 crores.
→No specific current fundraising announcements were made, but future equity infusion in joint ventures will be split 50-50 between the company and the partner.
→The company intends to proceed in an aggressive but cautious manner, balancing debt and equity based on evolving needs and execution phases.

Order book

Yes

→Alloy Business: Partially booked for new 750-ton capacity; visibility from customers with orders generally given 1-2 months in advance. Current demand strong; running at full capacity already. Expected revenue in FY '27: INR40-70 crores, can increase with more customers.
→Relay Business: Samples submitted to 3-4 companies; in testing and certification phase. Customers doing field tests; commercial volumes expected from mid FY '27 onwards.
→Quantum Magnetics (Subsidiary): Orders in hand for Phase 1 expansion but unable to supply due to import restrictions (now relaxed). Expected production start around March 2026.
→Current sensor products: One customer already started using; pilot lots given to others; expected FY '27 sales INR2-5 crores. Engaged with 4-5 customers for alloys including aerospace and defense segments.
→Overall growth optimistic for FY '27, heavily dependent on alloy order bookings and scaling of relay business.

Capex plans

Yes

→Quantum Magnetics Phase-wise Capex Plan:
→ - Total planned revenue by FY 2030: INR 3,700 crores.
→ - Total investment required: INR 550 crores to INR 750 crores for 5,000 tons production.
→ - Phase 1 (Pilot plant of 500 tons) capex: INR 50 crores to INR 100 crores.
→ - Phase 2: Block cutting facility expected by March (year not specified, likely 2026).
→ - Phase 3: Full-scale manufacturing of blocks in India targeted around 2027.
→Funding Strategy:
→ - Plans to fund through a mix of debt and equity in the subsidiary.
→Additional Investment:
→ - Setting up new furnace for alloy production in January-February-March (next fiscal year).
→Government Incentives:
→ - Anticipating participation in INR 7,300 crore government scheme expected by December/January.
→Joint Venture:
→ - 50-50 investment split between partner and PML; equity infusion to be shared equally.

How does Permanent Magnets Ltd rank vs peers in Electrical Equipment?

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