Pavna Industries Limited (PAVNAIND)
₹15.00 +0.67% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Pavna Industries' revenue was ₹91.9 Cr (+52.1% year on year, +68.7% on the previous quarter), and net profit ₹0.9 Cr (-47.2% year on year); the operating margin was 8.5%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹91.9 | +52.1% | +68.7% |
| Operating profit | ₹7.8 | +55.3% | -2.8% |
| Net profit | ₹0.9 | -47.2% | -60.8% |
| EPS (₹) | 0.06 | — | -64.7% |
| Operating margin | 8.5% | — | — |
No EPS growth against Q1 FY26: ₹10 to ₹1 split in Sep 2025.
PAVNAIND delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 69.91% of the PAVNAIND shares traded on NSE were taken to delivery, against the stock's own 20-session average of 71.3%. That is close to its usual level. Turnover was only ₹1 lakh, so a handful of trades can move this figure. Volume was under a tenth of its average.
Delivery in the last 5 sessions: 86.8% · 64.2% · 89.0% · 91.6% · 69.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Pavna Industries has completed the disinvestment of its entire 50.74% stake (30,901 equity shares) in subsidiary Pavna Auto Engineering Private Limited (PAEPL) on October 13, 2026. The stake was sold to promoter group member Mrs. Priya Jain for a total cash consideration of ₹8.80 crore. PAEPL contributed ₹15.34 crore (5.40%) to standalone revenue and ₹17.79 crore (9.07%) to net worth in the last financial year. The company stated that the proceeds will be used to strengthen core operations and reinvest into high-growth 2W/3W auto segments.
- Sold 100% of its 50.74% holding (30,901 shares) in Pavna Auto Engineering Private Limited for ₹8,79,72,057
- Buyer Mrs. Priya Jain belongs to the Promoter Group, making it a related-party transaction executed at arm's length
- PAEPL contributed ₹15.34 crore (5.40%) to standalone revenue and ₹17.79 crore (9.07%) to net worth in the last FY
- Disinvestment agreement executed on September 23, 2026, and share transfer finalized on October 13, 2026
Pavna Industries Limited has completed the sale and transfer of its entire 50.74% stake (3,09,001 equity shares) in subsidiary Swapnil Switches Private Limited (SSPL) on October 9, 2026. The total consideration received is ₹2.53 Cr (₹2,52,79,372), sold to promoters Mrs. Asha Jain, Mrs. Priya Jain, and PJ Wealth Management. SSPL contributed ₹2.48 Cr (0.87%) to standalone turnover and ₹4.87 Cr (2.48%) to standalone net worth in the last financial year. Consequently, SSPL ceases to be a direct subsidiary, with proceeds planned for deployment into core 2W/3W auto components.
- Transferred 100% of its 50.74% stake (3,09,001 equity shares) in Swapnil Switches Private Limited.
- Cash consideration received stands at ₹2,52,79,372 (~₹2.53 Cr).
- Target contributed ₹2.48 Cr (0.87%) to turnover and ₹4.87 Cr (2.48%) to standalone net worth.
- Buyers are promoter entities Mrs. Asha Jain, Mrs. Priya Jain, and PJ Wealth Management; transaction done at arm's length.
- Disinvestment completed on October 9, 2026, following shareholder approval on September 23, 2026.
Pavna Industries has announced the completion of construction at its upcoming manufacturing facility in Hosur, Tamil Nadu. Effective September 21, 2026, the company has transitioned warehousing operations from rented premises to this owned location. Post-festive season, assembly lines will begin relocating from Aligarh to Hosur, with the complete assembly process planned to shift by the end of calendar year 2026. This move strengthens proximity to South Indian OEM automotive clusters, serving customers like TVS and Royal Enfield.
- Construction of upcoming manufacturing facility at Hosur, Tamil Nadu completed as of September 21, 2026
- Shifted warehousing operations from rented premises to owned facility effective September 21, 2026
- Assembly lines to start shifting from Aligarh to Hosur post-festive season
- Targeting 100% completion of assembly process shift to Hosur by the end of calendar year 2026
Pavna Industries conducted its 32nd Annual General Meeting on September 21, 2026, with 31 members present in person. Key agenda items placed for shareholder approval include the 100% disinvestment in subsidiaries Swapnil Switches Private Limited and Pavna Auto Engineering Private Limited, alongside related-party transactions. The meeting concluded within 20 minutes (09:15 AM to 09:35 AM), and the final voting results will be declared within two working days.
- 32nd AGM held on September 21, 2026, spanning 20 minutes (09:15 AM to 09:35 AM)
- Approval sought for 100% disinvestment in subsidiary Swapnil Switches Private Limited (SSPL)
- Approval sought for 100% disinvestment in subsidiary Pavna Auto Engineering Private Limited (PAEPL)
- Total of 31 members attended the meeting in person
Pavna Industries Limited has issued the notice for its 32nd AGM scheduled for September 21, 2026. Key special resolutions include the divestment of its 50.74% stake in Swapnil Switches Private Limited to promoter group entities/individuals for ₹2.53 Cr (at ₹81.81/share). Additionally, the company seeks approval to sell its 50.74% stake in Pavna Auto Engineering Private Limited to Mrs. Priya Jain for up to ₹8.80 Cr.
- 32nd AGM scheduled for September 21, 2026, with remote e-voting from September 18 to September 20, 2026.
- Proposed divestment of 3,09,001 shares (50.74% stake) in Swapnil Switches Pvt Ltd to promoters for ₹2.53 Cr (₹81.81/share).
- Proposed divestment of 30,901 shares (50.74% stake) in Pavna Auto Engineering Pvt Ltd to Mrs. Priya Jain for up to ₹8.80 Cr.
- Record date / cut-off date for e-voting entitlement set as September 14, 2026.
Pavna Industries has approved a portfolio restructuring involving the acquisition of a 52.38% controlling stake in Pavna Electric Systems Private Limited (FY25 turnover of ₹25.78 Cr) at ₹154.50 per share. Concurrently, the company is divesting its entire 50.74% stakes in two subsidiaries—Pavna Auto Engineering Private Limited for up to ₹8.80 Cr and Swapnil Switches Private Limited for up to ₹2.55 Cr—to promoter group entities. The total divestment consideration of up to ₹11.35 Cr represents ~10.4% of Pavna's market cap (₹109 Cr) and proceeds will be redeployed into core automotive growth segments. All transactions are related-party deals subject to shareholder approval at the AGM scheduled for September 21, 2026.
- Acquiring 52.38% stake (11,000 shares) in Pavna Electric Systems Private Limited at ₹154.50 per share.
- Target Pavna Electric Systems reported FY25 revenue of ₹25.78 Cr and net worth of ₹0.23 Cr.
- Divesting 50.74% in Pavna Auto Engineering for up to ₹8.80 Cr (contributed 5.40% of standalone revenue).
- Divesting 50.74% in Swapnil Switches for up to ₹2.55 Cr (contributed 0.87% of standalone revenue).
- Both divestments are to promoter group buyers on an arm's length basis, targeting completion within 120 days post shareholder approval.
Pavna Industries has approved a portfolio restructuring involving three related-party transactions. The company will acquire a 52.38% controlling stake in Pavna Electric Systems Private Limited (FY25 turnover of ₹25.78 Cr) at ₹154.50 per share to enhance its electrical components capabilities. Concurrently, it will divest its entire 50.74% stake in two subsidiaries—Pavna Auto Engineering (for up to ₹8.80 Cr) and Swapnil Switches (for up to ₹2.55 Cr)—to promoter group members. Total expected divestment proceeds of ~₹11.35 Cr (approx. 10.4% of market cap) will be redeployed toward core 2W/3W auto business opportunities.
- Acquiring 52.38% stake (11,000 shares) in Pavna Electric Systems Pvt Ltd at ₹154.50/share in cash.
- Target entity Pavna Electric Systems reported FY25 revenue of ₹25.78 Cr and net worth of ₹0.23 Cr.
- Divesting 50.74% stake in Pavna Auto Engineering to promoter group for up to ₹8.80 Cr (contributed ₹15.34 Cr revenue in FY25).
- Divesting 50.74% stake in Swapnil Switches to promoter group for up to ₹2.55 Cr (contributed ₹2.48 Cr revenue in FY25).
- Transactions are subject to shareholder approval at the upcoming AGM scheduled for September 21, 2026.
Pavna Industries has approved a corporate restructuring involving the acquisition of a 52.38% stake (11,000 shares at ₹154.50/share) in Pavna Electric Systems (FY25 turnover ₹25.78 Cr). Simultaneously, the company will divest its entire 50.74% stakes in two subsidiaries—Pavna Auto Engineering for up to ₹8.80 Cr and Swapnil Switches for up to ₹2.55 Cr—to members of the promoter group. The net proceeds of ~₹11.35 Cr are slated to strengthen core operations and fund high-growth 2W/3W opportunities.
- Acquiring 52.38% stake (11,000 shares) in Pavna Electric Systems Private Limited at ₹154.50 per share
- Divesting 50.74% stake in Pavna Auto Engineering to promoter Mrs. Priya Jain for up to ₹8.80 Cr
- Divesting 50.74% stake in Swapnil Switches to promoter group entities for up to ₹2.55 Cr
- Divestments represent a combined cash inflow of up to ₹11.35 Cr (~10.4% of market cap of ₹109 Cr)
- 32nd AGM scheduled for September 21, 2026 to seek shareholder approval for the transactions
Pavna Industries has confirmed zero deviation in the utilization of proceeds from its ₹210.70 crore preferential issue for the quarter ended June 30, 2026. The company has received ₹119.80 crore to date, which includes the full ₹89.50 crore from equity shares and ₹30.30 crore (25%) from convertible warrants. The issue was priced at ₹505 per unit and is being monitored by CARE Ratings Limited. This filing is a routine regulatory requirement to ensure funds are used for their intended purposes.
- Total aggregate fundraise of ₹210.70 crore through equity shares and convertible warrants
- ₹119.80 crore total received to date, representing approximately 57% of the total issue size
- Preferential issue price of ₹505 per share, including a premium of ₹495
- Zero deviation reported in fund usage for the quarter ended June 30, 2026
Pavna Industries reported a consolidated net profit of ₹0.84 Cr for the quarter ended June 30, 2026. A major development is the forfeiture of ₹30.30 Cr in upfront subscription money after warrant holders (including promoters) failed to pay the remaining 75% balance by the July 28, 2026 deadline. This forfeited amount is highly material, representing approximately 51% of the company's current market capitalization (₹59 Cr). While this provides a non-dilutive cash boost to the company's reserves, it confirms the cancellation of a much larger ₹210.70 Cr capital infusion plan.
- Consolidated Net Profit for Q1 FY27 stood at ₹0.84 Cr (₹83.61 Lakhs).
- Forfeiture of ₹30.30 Cr in upfront deposits after 24,00,000 warrants lapsed on July 28, 2026.
- The forfeited amount represents ~51.3% of the company's current market capitalization of ₹59 Cr.
- The warrants were part of a ₹210.70 Cr preferential issue originally approved in January 2025.
- Basic EPS for the quarter stood at ₹0.06 on a post-split face value of ₹1.
Pavna Industries has appointed Mr. Soumya Sinha as Deputy CEO - Export Business and Senior Management Personnel, effective August 11, 2026. Mr. Sinha brings over 20 years of experience from major automotive and technology firms including Spark Minda, Siemens, and Lear Corporation. This strategic hire is aimed at strengthening the company's international presence and diversifying its revenue stream, which currently sees over 50% of sales coming from just three major customers. Given the company's micro-cap status (₹58 Cr) and TTM revenue of ₹297 Cr, this leadership addition is a significant step toward its 20% growth target.
- Appointment of Mr. Soumya Sinha as Deputy CEO - Export Business effective August 11, 2026
- Appointee brings over 20 years of experience across international business and the automotive industry
- Strategic focus on reducing high customer concentration where top 3 clients contribute >50% of revenue
- Aims to drive growth in the Proprietary segment which saw >20% growth in FY25
- Leveraging experience from global firms like Hella KGaA and Siemens Industry Software
Pavna Industries has forfeited ₹30.30 crore previously paid by promoters as a 25% upfront deposit for 24,00,000 convertible warrants. The promoters failed to pay the remaining 75% balance (approx. ₹90.9 crore) by the July 28, 2026 deadline, likely due to the warrant exercise price of ₹505 being significantly higher than the current market price of ₹15.8. While the company retains the cash without equity dilution, it loses out on the total planned capital infusion of ₹121.2 crore. Additionally, the board identified 38 Senior Management Personnel following an internal restructuring.
- Forfeiture of ₹30.30 crore representing the 25% upfront subscription amount from the promoter group
- Lapse of 24,00,000 convertible warrants originally allotted on January 29, 2025, at an issue price of ₹505
- Failure to infuse the remaining 75% balance consideration (₹90.9 crore) within the 18-month stipulated period
- Identification of 38 employees as Senior Management Personnel (SMP) following internal reporting hierarchy changes
- Appointment of M/s Suri & Sudhir as Internal Auditors for the financial year 2026-27
Pavna Industries has forfeited ₹30.30 crore in upfront subscription money after promoters failed to exercise 24,00,000 convertible warrants by the July 28, 2026 deadline. The warrants were originally priced at ₹505 each, which is significantly higher than the current market price of ₹15.8, making conversion unattractive. This forfeiture provides a massive one-time cash windfall, representing approximately 61.8% of the company's current market capitalization. Additionally, the company has identified 38 Senior Management Personnel (SMP) as part of an internal reporting restructuring and appointed new internal auditors for FY27.
- ₹30.30 Crore forfeited by the company, equivalent to 25% of the total warrant issue value.
- 24,00,000 warrants lapsed as promoters opted not to pay the remaining 75% balance consideration.
- Warrant issue price of ₹505 per share stands in stark contrast to the current market price of ₹15.8.
- 38 employees designated as Senior Management Personnel (SMP) following an internal reporting hierarchy change.
- M/s Suri & Sudhir appointed as Internal Auditors for the financial year 2026-27.
Pavna Industries has forfeited ₹30.30 crore following the lapse of 24,00,000 convertible warrants held by the promoter group. The warrants, issued in January 2025 at ₹505 per share, lapsed as the holders failed to pay the remaining 75% consideration (₹90.9 crore) by the July 28, 2026 deadline. This forfeiture represents a significant cash windfall for the company, equivalent to approximately 62% of its current market capitalization of ₹49 crore. Additionally, the board identified 38 employees as Senior Management Personnel and appointed M/s Suri & Sudhir as internal auditors for FY 2026-27.
- ₹30.30 Crore forfeited by the company, representing the 25% upfront subscription amount paid by promoters.
- 24,00,000 warrants lapsed as promoters (Asha Jain, Swapnil Jain, and Priya Jain) did not pay the balance 75% consideration.
- Warrant exercise price of ₹505 per share was significantly higher than the current market price of ₹15.8.
- 38 employees designated as Senior Management Personnel (SMP) following an internal reporting hierarchy restructuring.
- M/s Suri & Sudhir, Chartered Accountants, appointed as Internal Auditors for the 2026-27 financial year.
Pavna Industries has forfeited ₹30.30 crore following the lapse of 24,00,000 convertible warrants held by the promoter group. The warrants were issued in January 2025 at a price of ₹505 per unit, but the promoters failed to pay the remaining 75% balance by the July 28, 2026 deadline. This forfeiture provides a significant cash infusion to the company's reserves without any equity dilution, which is substantial given the company's current market capitalization of approximately ₹49 crore.
- ₹30.30 Crore forfeited from promoters (Asha Jain, Swapnil Jain, and Priya Jain) representing the 25% upfront subscription.
- 24,00,000 warrants lapsed as the 75% balance payment was not made within the 18-month tenure.
- Warrant exercise price was ₹505 per share, significantly higher than the current market price of ₹15.8.
- 38 employees identified as Senior Management Personnel (SMP) following internal restructuring.
- M/s Suri & Sudhir appointed as Internal Auditors for FY 2026-27.
Financial Performance
Revenue Growth by Segment
Consolidated revenue for FY25 was INR 308.24 Cr, a 2.73% decrease from INR 316.87 Cr in FY24. However, the non-casting segment grew 18.18% to INR 260 Cr (from INR 220 Cr), and the Proprietary business grew by over 20% YoY. This reflects a strategic shift away from the lower-margin Casting segment to higher-margin proprietary products.
Geographic Revenue Split
Not disclosed in available documents, though the company operates strategically located plants in Aligarh (Uttar Pradesh) and Pantnagar (Uttarakhand) to serve domestic OEMs.
Profitability Margins
PAT Margin for FY25 stood at 2.61%, a decrease of 118 bps from 3.79% in FY24. The decline was driven by the strategic transition toward the proprietary segment and a planned reduction in the casting business, alongside higher depreciation of INR 13.05 Cr compared to INR 10.70 Cr in the previous year.
EBITDA Margin
EBITDA Margin for FY25 was 10.72%, a slight decrease of 16 bps from 10.88% in FY24. EBITDA in absolute terms was INR 33.05 Cr, down 4.17% YoY from INR 34.49 Cr.
Capital Expenditure
The company acquired 4,335 sq. mtr. of land in Pantnagar, Uttarakhand, in June 2024 to support long-term capacity creation. Additionally, INR 78.92 Cr from a preferential issue has been allocated for strategic acquisitions to drive future growth.
Credit Rating & Borrowing
CRISIL reaffirmed its 'CRISIL BBB-/Stable' rating on long-term bank facilities. Borrowing costs are managed through a mix of loans and internal accruals, with interest coverage expected to improve to 7-7.5 times in fiscal 2026 from 3.1 times in fiscal 2025 due to debt reduction.
Operational Drivers
Raw Materials
Total Raw Materials consumed in FY25 amounted to INR 200.91 Cr, representing 65.18% of total revenue. Specific material names like steel or aluminum are not explicitly listed but are standard for automotive component manufacturing.
Key Suppliers
Not disclosed in available documents; however, the company maintains healthy relationships with principal suppliers to support its long-standing OEM partnerships.
Capacity Expansion
Current capacity is being expanded through the acquisition of 4,335 sq. mtr. of land in Pantnagar. The company is building a future-ready manufacturing ecosystem to support scalable infrastructure and technology integration.
Raw Material Costs
Raw material costs were INR 200.91 Cr in FY25, down 0.77% from INR 202.47 Cr in FY24. The company utilizes a pass-through mechanism to transfer input price increases to customers, maintaining operational efficiency.
Manufacturing Efficiency
Fund-based bank limit utilization averaged 68% for the 12 months through June 2025, a significant improvement from previous levels exceeding 90%, indicating better working capital management and liquidity.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Growth will be achieved through a strategic pivot to the high-margin Proprietary segment (which grew >20% in FY25), capacity expansion in Pantnagar, and the utilization of INR 78.92 Cr for strategic acquisitions. The company is also adding new customers to its portfolio to drive volumetric growth in non-casting revenues.
Products & Services
Manufacturing of automotive parts including locks, switches, casting components, and proprietary automotive solutions for 2W, 3W, PV, CV, and off-road vehicles.
Brand Portfolio
Pavna
New Products/Services
The Proprietary business segment is the primary driver of new growth, contributing to a robust 20% growth rate within that vertical in FY25.
Market Expansion
Expansion is focused on contiguous growth in Pantnagar, Uttarakhand, to strengthen the manufacturing platform for long-term capacity creation.
Strategic Alliances
Maintains long-standing relationships with major OEMs, most notably Bajaj Auto Ltd (since 1971) and Honda Motorcycles and Scooters India.
External Factors
Industry Trends
The Indian auto-component industry is set to cross USD 80 billion in revenue in FY2025. Pavna is positioning itself for this growth by shifting from low-margin casting to high-tech proprietary parts.
Competitive Landscape
Faces competition from both domestic and multinational companies in all operating categories, countered by differentiators in project execution and technology investment.
Competitive Moat
The moat is built on 50+ years of experience and deeply entrenched relationships with major OEMs like Bajaj (54-year relationship). These long-term ties create high switching costs for OEMs and provide a stable revenue base.
Macro Economic Sensitivity
Highly sensitive to the Indian automobile industry cycles; a decline in consumer demand for vehicles directly impacts OEM orders.
Consumer Behavior
Increasing demand for high-quality, reliable automotive parts in the South Asian market supports Pavna's shift toward proprietary, high-margin products.
Geopolitical Risks
Global economic developments and changes in international trade laws are cited as factors that could influence operations.
Regulatory & Governance
Industry Regulations
Operations are subject to changes in government regulations, pollution norms, and tax laws within India.
Taxation Policy Impact
The effective tax rate for FY25 was approximately 27.8%, with a tax expense of INR 3.11 Cr on a Profit Before Tax of INR 11.16 Cr.
Risk Analysis
Key Uncertainties
The primary uncertainty is the high customer concentration risk (>50% from top 3). A secondary risk is the near-term margin pressure during the transition from casting to proprietary segments.
Geographic Concentration Risk
Manufacturing is concentrated in Aligarh and Pantnagar, making the company sensitive to regional economic and regulatory changes in Uttar Pradesh and Uttarakhand.
Third Party Dependencies
High dependency on the production schedules and market success of Bajaj Auto and Honda Motorcycles.
Technology Obsolescence Risk
The company mitigates technology risk by continuously investing in R&D and people to stay ahead of industry shifts toward more advanced automotive components.
Credit & Counterparty Risk
Credit risk is managed through a rigorous credit policy and an aggressive receivables management system to ensure timely collections from mid-sized and large corporations.
