Permanent Magnets Ltd (504132) Quarterly Report Analysis & Insights

Permanent Magnets Ltd

| Audited Financial Results – Q4 & FY2026

⬤13th May 26

Summary : Permanent Magnets Limited reported growth in FY26, recommended a dividend, and plans expansion despite an ongoing legal matter and new labor code uncertainties.

Quarterly Report Analysis & Insights

Financial Disclosures

Standalone Cost of materials consumed: INR 122.00 Cr (FY26), INR 111.66 Cr (FY25).
Consolidated Cost of materials consumed: INR 122.33 Cr (FY26), INR 112.49 Cr (FY25).
Standalone Employee benefits expenses: INR 14.72 Cr (FY26), INR 12.19 Cr (FY25).
Consolidated Employee benefits expenses: INR 15.69 Cr (FY26), INR 13.03 Cr (FY25).
Standalone Finance Cost: INR 3.12 Cr (FY26), INR 2.17 Cr (FY25).
Consolidated Finance Cost: INR 4.10 Cr (FY26), INR 2.40 Cr (FY25).
Standalone Depreciation & Amortisation Expenses: INR 12.63 Cr (FY26), INR 9.33 Cr (FY25).
Consolidated Depreciation & Amortisation Expenses: INR 14.52 Cr (FY26), INR 11.43 Cr (FY25).
Standalone Other expenses: INR 53.65 Cr (FY26), INR 48.95 Cr (FY25).
Consolidated Other Expenditure: INR 55.15 Cr (FY26), INR 50.33 Cr (FY25).
Standalone Gross Sales/Revenue from Operations: INR 225.46 Cr (FY26), INR 199.54 Cr (FY25).
Consolidated Gross Sales/Revenue from Operations: INR 226.24 Cr (FY26), INR 205.05 Cr (FY25).
Standalone Other Income: INR 6.20 Cr (FY26), INR 4.54 Cr (FY25).
Consolidated Other Income: INR 6.07 Cr (FY26), INR 4.16 Cr (FY25).
Standalone Net cash flow from Operating Activities: INR 31.40 Cr (FY26), INR 36.30 Cr (FY25).
Consolidated Net cash flow from Operating Activities: INR 17.59 Cr (FY26), INR 39.15 Cr (FY25).
Standalone Net cash used in investing activities: (INR 27.75) Cr (FY26), (INR 27.59) Cr (FY25).
Consolidated Net cash used in investing activities: (INR 43.33) Cr (FY26), (INR 29.07) Cr (FY25).
Standalone Net cash from Financing Activities: INR 2.91 Cr (FY26), (INR 8.30) Cr (FY25).
Consolidated Net cash from Financing Activities: INR 48.42 Cr (FY26), (INR 9.50) Cr (FY25).
Interim stay order against winding-up order, with INR 0.19 Cr deposited.
Standalone Total Assets: INR 238.35 Cr (FY26), INR 189.91 Cr (FY25).
Consolidated Total Assets: INR 282.15 Cr (FY26), INR 194.16 Cr (FY25).
Standalone Equity Share Capital: INR 8.60 Cr (FY26), INR 8.60 Cr (FY25).
Consolidated Equity Share Capital: INR 8.60 Cr (FY26), INR 8.60 Cr (FY25).
Standalone Other Equity: INR 156.37 Cr (FY26), INR 137.40 Cr (FY25).
Consolidated Other Equity: INR 148.79 Cr (FY26), INR 135.44 Cr (FY25).
Standalone Non-Current Borrowings: INR 19.03 Cr (FY26), INR 11.05 Cr (FY25).
Consolidated Non-Current Borrowings: INR 66.84 Cr (FY26), INR 8.11 Cr (FY25).
Standalone Current Borrowings: INR 3.47 Cr (FY26), INR 3.27 Cr (FY25).
Consolidated Current Borrowings: INR 3.47 Cr (FY26), INR 3.27 Cr (FY25).
The report presents both standalone and consolidated financial results.

Corporate Overview

Managing ongoing legal proceedings regarding a winding-up order.
Assessing and recognizing impact of new Labour Codes.
Manufacture, process, buy, sell, and deal in permanent magnets, ores, metals, alloys, and their products.
Deal in latching and other relays, forgings, NdFeB, current sensors, laminations, motors and parts.
Smelting, founding, melting, alloying, refining, making, shaping, treating, processing metals and alloys.
Primarily operates in one business segment: Engineering and Current Sensing applications.
Confident in financial reporting and future plans, despite legal matter.
Engineering and Current Sensing applications (primary segment).
Increase in borrowing limits from INR 100 crores to INR 300 crores.
Increase in limits for creation of charge/mortgage to secure borrowings up to INR 300 crores.
Seeking consent for investments/loans/guarantees exceeding prescribed limits.

Risk Factors

Pending winding-up order legal proceedings.
Uncertain impact of new Labour Codes.
Increased borrowing limits raise debt.
Single business segment concentration risk.

Key Drivers

Recommended dividend of Rs. 2.20 per share.
Increased borrowing limits support future growth.
Expanded object clause for new business.
Unmodified audit opinion boosts investor confidence.

Auditor’s Report

Unmodified opinion on both Audited Standalone and Consolidated Financial Results for the year ended March 31, 2026.
Attention drawn to Note 5 regarding an interim stay order from Bombay High Court against a winding-up order, with the report not modified in respect of this matter.

Board Commentary

Approved appointment of M/s. Krishna S & Associates as Cost Auditor for FY 2026-27.
Recommended a final dividend of Rs. 2.20/- per Equity Share (22%) on Face Value of Rs. 10/- for FY 2025-26.
Legal risk related to the pending winding-up order from Bombay High Court.
Interim stay order from Bombay High Court against a winding-up order passed on 15/04/2015.
Company has deposited INR 0.19 Crores with interest as per court direction.
Proposed increase in borrowing limits from INR 100 crores to INR 300 crores.
Proposed increase in limits for creation of charge/mortgage to secure borrowings up to INR 300 crores.
Proposed consent for making investments/loans/guarantees in excess of prescribed limits.

Corporate Governance

Audit Committee recommended appointment of Cost Auditor.

Management Discussion & Analysis

Future Strategy

Seeking shareholder approval to increase borrowing limits to INR 300 crores.
Seeking shareholder approval to increase limits for creating charge/mortgage to INR 300 crores.
Seeking shareholder approval for investments/loans/guarantees exceeding statutory limits.
Alteration in Memorandum of Association (MOA) object clause to expand business scope.

Macroeconomic Outlook

Impact of new Labour Codes implemented by Government of India.

Operational Focus Areas

Compliance with new Labour Codes and assessment of their financial impact.

Performance Drivers

Growth in gross sales/revenue from operations (Standalone: 225.46 Cr in FY26 vs 199.54 Cr in FY25; Consolidated: 226.24 Cr in FY26 vs 205.05 Cr in FY25).
Profit for the period from continuing operations increased (Standalone: 20.39 Cr in FY26 vs 15.17 Cr in FY25; Consolidated: 14.77 Cr in FY26 vs 15.75 Cr in FY25).

Risk Control Measures

Company has deposited INR 0.19 Crores with interest as per court direction for the winding-up order.
Evaluating and recognizing additional impact from new Labour Codes as rules are notified.

Critical Risks

Ongoing legal proceedings regarding a winding-up order from Bombay High Court.
Uncertainty regarding additional impact from new Labour Codes and related rules.
Increased borrowing limits could lead to higher debt levels.