Auto components manufacturer Pricol Ltd reported a 34.34% year-on-year increase in consolidated profit after tax (PAT) to ₹67.02 crore for the first quarter of FY27, driven by healthy revenue growth, even as higher input costs and currency headwinds weighed on profitability.
The company’s revenue from operations rose 23.46% to ₹1,083.58 crore during the June quarter, reflecting sustained demand across its automotive business.
Revenue growth remains strong
Pricol’s operating performance remained resilient during the quarter, with EBITDA increasing 21.42% year-on-year to ₹123.69 crore. The company reported an EBITDA margin of 11.41%, while earnings per share (EPS) rose 34.47% to ₹5.50.
The strong topline growth underscores continued momentum in the automotive sector, although cost inflation continued to erode margins.
Margins under pressure
Pricol Chairman & Managing Director Vikram Mohan said profitability remained under pressure despite the company’s positive growth trajectory.
He attributed the margin squeeze to rising raw material prices, higher inventory holding costs, increased freight expenses and the depreciation of the Indian rupee.
“While the company continued to deliver positive growth, profitability remained under pressure during the period. The increase in raw material prices, inventory holding costs and freight expenses, together with the depreciation of the Indian rupee, adversely impacted margins,” he said.
Cost recovery to take time
The company said it has initiated cost optimisation measures, productivity improvements and pricing interventions to mitigate the impact of rising costs.
However, Mohan noted that only a part of these additional costs can be recovered from customers, typically with a three- to six-month lag, meaning the pressure on margins is likely to persist in the near term.
He also flagged geopolitical uncertainties and disruptions in global trade and supply chains as additional risks to the operating environment.
Outlook
Pricol said it remains focused on maintaining business continuity, strengthening operational efficiency and exercising cost discipline while continuing to invest in innovation, manufacturing capabilities and customer relationships.
With demand from the automotive sector remaining healthy, the company’s ability to improve cost recovery and protect margins will be a key factor influencing earnings over the coming quarters.