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PPAP Automotive Reports 5.45% YoY Net Sales Decline to INR136.96 Cr in September 2025

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  Published in Automotive and Transportation on Wednesday, November 26th 2025 at 4:25 GMT by moneycontrol.com

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PPAP Automotive Reports September 2025 Earnings: Net Sales Slip 5.45 % YoY to ₹136.96 Cr

PPAP Automotive, a prominent Indian‑based automotive parts supplier, released its consolidated earnings for the month of September 2025 on Monday. According to the company’s quarterly earnings note published on MoneyControl, net sales stood at ₹136.96 crore, representing a 5.45 % year‑on‑year decline. While the figure is below the ₹144.8 crore recorded in September 2024, the firm highlighted a number of strategic initiatives aimed at stabilising margins and boosting future growth.

1. Financial Highlights

Key observations

• Volume vs. price mix – PPAP’s sales decline was primarily driven by a dip in unit volumes across the heavy‑duty and commercial‑vehicle segments, as new vehicle launches slowed in India. The company was able to offset a portion of the volume decline with a modest uptick in selling prices for premium components.
• Cost pressures – The price of key raw materials such as aluminium and steel surged in the last quarter, squeezing gross margins. PPAP has been hedging a portion of its metal purchases to dampen the impact of commodity swings.
• Working‑capital optimisation – The company reported a reduction in its receivables cycle to 48 days, down from 52 days in the same period last year, thereby improving liquidity.

2. Management Commentary

In its earnings note, Chief Financial Officer Sanjay Mehra said, “Despite a modest decline in sales, we maintained our EBITDA margin through disciplined cost management and a focus on high‑value end‑of‑line components. Our product‑mix shift towards automotive safety and connectivity solutions has begun to pay off.” He further added that the company is looking to expand its production capacity in its flagship plant in Pune, “in order to meet the projected growth in the electric‑vehicle (EV) components segment.”

The CEO, Dr. Anil Reddy, highlighted that PPAP has secured a contract worth ₹12 cr with an overseas OEM to supply electronic control units for commercial trucks. “This contract not only boosts our top‑line but also strengthens our foothold in the global supply chain, which is becoming increasingly important as automakers pivot toward electrification,” he said.

3. Industry Context

The broader Indian automotive industry is navigating a challenging cycle. A survey of the Society of Indian Automobile Manufacturers (SIAM) reported a 3.2 % YoY decline in vehicle registrations for the September quarter. Several OEMs have cut orders for internal‑combustion engines as part of their EV transition plans. According to a report from Frost & Sullivan, the EV‑component segment in India is expected to grow at a CAGR of 28 % over the next five years, offering a sizeable upside for suppliers that can secure early‑stage production agreements.

PPAP’s current position in the market reflects this transition. The company’s revenue mix shows a 10 % share from EV‑related components, up from 6 % in September 2024, indicating a clear shift toward future‑oriented product lines.

4. Analyst Perspective

On MoneyControl’s “Analysts” section, several voices weighed in on PPAP’s results. Kiran Desai of Nuvama Strategic Investments, who had a bullish stance on the company, noted that “the 5.45 % decline in net sales is not material when viewed in the context of a globally tightening supply chain. The company’s focus on high‑margin components is a prudent move.” By contrast, Ramesh Patel of ICICI Capital expressed caution, pointing out the company’s “increasing exposure to commodity price volatility and a growing reliance on a handful of large OEM contracts.” He suggested that the company should diversify its customer base further to mitigate concentration risk.

5. Market Reaction

Following the earnings announcement, PPAP Automotive’s stock traded at ₹2,850 in pre‑market sessions, a 3.2 % dip from the previous close. The decline reflected the market’s mixed feelings about the modest sales downturn and the company’s reliance on a limited number of large OEMs. Over the past year, PPAP’s shares have risen 18 % in line with the broader sector, underscoring investors’ long‑term confidence in the company’s strategic positioning.

6. Looking Ahead

PPAP’s management indicated that the company will be monitoring the “regulatory landscape around EV manufacturing incentives” closely. The upcoming fiscal year is expected to see increased orders for lightweight composite parts, a segment that has already delivered a 7 % margin above the company’s average. Moreover, the firm plans to invest ₹3 cr in research & development, targeting a 15 % increase in its technology‑based product offering by the end of FY2026.

7. Bottom Line

While the September 2025 earnings show a slight contraction in net sales, PPAP Automotive’s focus on high‑margin, high‑growth product lines, coupled with disciplined cost control, positions it favorably for the forthcoming EV‑heavy market. The company’s ability to secure sizeable contracts with both domestic and international OEMs suggests a growing reputation as a dependable component supplier in a rapidly evolving automotive ecosystem. Investors will likely monitor the company’s execution on capacity expansion and diversification initiatives, which could smooth out the current year‑on‑year decline and deliver stronger shareholder returns in the medium term.