Auto Sector Stock: Pavna Industries Ltd Reports a Turnaround Net Profit of Rs 1.68 crore QoQ

Pavna Industries Limited has grown into a leading manufacturer of high-quality automotive components for a wide range of vehicles, including passenger cars, two-wheelers and commercial vehicles. Formerly known as Pavna Locks Limited, the company leverages over 50 years of experience in the industry, supplying parts like ignition switches and fuel tank caps to major OEMs such as Bajaj, Honda and TVS. With state-of-the-art plants strategically located in Aligarh, Aurangabad and Pantnagar, Pavna ensures efficient service to its clients while also maintaining a strong international presence in markets like Italy and the U.S.A. The company's commitment to continuous innovation is driven by extensive in-house research and development, as well as strategic partnerships like its joint venture with Sunworld Moto Industrial Co.

According to Quarterly Results, the company reported net sales of Rs 74.15 crore in Q2FY26 compared to net sales of Rs 60.40 crore in Q1FY26, an increase of 23 per cent. The company reported a turnaround net profit of Rs 1.68 crore in Q2FY26 compared to a net loss of Rs 1.72 crore in Q1FY26, an increase of 198 per cent. In H1FY26, the company reported net sales of Rs 134.55 crore and a net loss of Rs 0.04 crore. In its annual results, the company reported net sales of Rs 308.24 crore and net profit of Rs 8.04 crore in FY25.

Pavna Industries Limited has also announced a dual initiative to significantly boost its technological capabilities and market presence: the establishment of a new R&D Centre in Noida and the formation of a joint venture subsidiary. The state-of-the-art R&D facility will focus on advancing electronic components, lock systems, and switches to enhance Pavna's product sophistication for the evolving automotive market. Concurrently, Pavna has formed PAVNA SMC PRIVATE LIMITED, a strategic 80:20 joint venture with Smartchip Microelectronics Corp., incorporated on November 5, 2025. This new entity will vertically integrate the manufacturing of critical electronic components, not just for the automotive sector (including ICE and EV), but also for Aerospace, medical devices, and residential/commercial hardware, marking a significant expansion of Pavna's business scope and commitment to innovation.

Pavna Industries Limited shares have ex-traded a 10-for-1 stock split. This means that for every one share currently held with a face value of Rs 10, shareholders will have ten shares, each with a face value of Re 1. The ex-date for the stock split was Monday, September 01, 2025. As of September 2025, Promoters own 61.50 per cent stake, FIIs own 6.06 per cent stake (an FII- Forbes AMC holds 3.58 per cent stake in the company) and public shareholders own the remaining 32.44 per cent stake. The company has a market cap of over Rs 500 crore. The shares of the company have a PE of 95x, an ROE of 5 per cent and an ROCE of 10 per cent. The stock is up by 23 per cent from its 52-week low of Rs 29.52 per share.

Disclaimer: The article is for informational purposes only and not investment advice.