Permanent Magnets Q2 Net Profit Surges 212% to ₹7.5 Crore Amid Margin Expansion

Key numbers

P/E Ratio	59.9Industry 36.9
Market Cap	₹743.38 CrSmall Cap
RSI	50.5Neutral Zone
Promoter Holding	58.07%Static QoQ

Key highlights

• Consolidated net profit climbed 212.5% YoY to reach ₹7.5 crore in Q2 FY27
• Revenue from operations rose 47.7% YoY to ₹72.5 crore compared to ₹49.1 crore in Q2 FY26
• Operating margins expanded sharply to 16.7% from 7.3% in the same quarter last year
• Sequential performance improved with net profit growing 97.4% from ₹3.8 crore in Q1 FY27
• Company reiterated FY27 revenue growth guidance of 20% to 30% with target EBITDA margins of 15% to 18%
• Ongoing ₹40-50 crore capex at Quantum Magnetics is on track for Q3 FY27 commissioning

Margin Expansion and Profitability Surge

Permanent Magnets reported a substantial widening of its operating profitability during the September quarter, with consolidated operating margins reaching 16.7% compared to 7.3% in the same period last year. This expansion was driven by a robust top-line performance, with revenue from operations rising 47.7% year-on-year to ₹72.5 crore. The improvement in profitability flowed through to the bottom line, as net profit more than tripled to ₹7.5 crore.

The company managed its cost structure effectively even as the scale of operations increased, with profit before tax climbing to ₹12.3 crore from ₹3.7 crore in the year-ago quarter.

Growth Trends and Strategic Guidance

The quarter's performance aligns with the company's long-term trajectory and the management guidance issued in August 2026, which projected annual revenue growth of 20% to 30% for FY27. Sequentially, revenue grew 14.7% from the ₹63.2 crore recorded in Q1 FY27, indicating sustained demand in its primary engineering and current sensing business segments. Historically, the company has demonstrated steady top-line expansion, moving from ₹48.70 crore in Q2 FY26 to ₹66.54 crore in Q4 FY26.

The current results suggest the company is well-positioned to meet its fiscal year targets as it scales its industrial goods offerings.

Expansion Milestones at Quantum Magnetics

• Ongoing capital expenditure of ₹40 crore to ₹50 crore is currently being deployed at subsidiary Quantum Magnetics
• Phase 2 of the NdFeB magnet machining facility is targeted for commissioning during Q3 FY27
• First commercial sales from the newly commissioned capacity are expected to begin in Q4 FY27
• The subsidiary remains a wholly-owned entity focused on specialized industrial magnet production
• Investments are aimed at capturing growth in precision engineering and high-end sensing applications

Legal Stay on Winding-Up Order

Honourable Bombay High Court has given interim stay order against the winding up order passed against the Company dated 15/04/2015. Next hearing in this matter shall come up as per listing of the court. Company has deposited ₹ 0.19/- Crores with interest as per direction of honourable Bombay High Court.

What to watch next

• Commissioning of Phase 2 NdFeB machining facility targeted for Q3 FY27
• Realization of first commercial sales from the Quantum Magnetics expansion in Q4 FY27
• Next court hearing regarding the interim stay order on the winding-up matter
• Achievement of the guided 20% to 30% revenue growth for the full fiscal year 2027

Permanent Magnets · financial snapshot

Share price	₹864.55
Market capitalisation	₹743.38 Cr
Revenue (annual)	₹226.24 Cr
Net profit (annual)	₹14.77 Cr
Revenue (latest quarter)	₹63.23 Cr-4.97% vs previous quarter
Net profit (latest quarter)	₹3.80 Cr-4.76% vs previous quarter
P/E (TTM)	59.9×Sector 50.57×
Promoter holding	58.07%+0.06% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.