Auto Sector Stock: Pavna Industries Strengthens Commitment to Innovation with New R&D Centre in Noida & Incorporates a New Joint Venture Subsidiary

Pavna Industries Limited, a key manufacturer of automotive components for a variety of vehicle segments, has significantly strengthened its commitment to innovation by establishing a new Research and Development (R&D) Centre in Sector-63, Noida, Uttar Pradesh. This state-of-the-art facility is designed to advance the company's capabilities in the development of technologically sophisticated products. The R&D focus areas will include electronic components, lock systems, and switches, ensuring Pavna can better meet evolving customer needs and global standards for both traditional and advanced automotive solutions.

Simultaneously, Pavna Industries has expanded its business scope through a new joint venture subsidiary named PAVNA SMC PRIVATE LIMITED, which was incorporated on November 05, 2025. This company is a collaboration between Pavna Industries Limited and Smartchip Microelectronics Corp. The primary objective of this new entity is to manufacture electronic components not only for the automotive industry (including ICE and EV segments) but also for diverse sectors such as hardware for residential/commercial locks, Aerospace, and medical devices.

Pavna Industries holds a controlling interest of 80 per cent in the new subsidiary, with Smartchip Microelectronics Corp. holding the remaining 20 per cent. The incorporation of PAVNA SMC PRIVATE LIMITED, which belongs to the Automobile industry and is considered a related party transaction, represents a strategic move to vertically integrate the manufacturing of critical electronic components. This dual initiative-the new R&D Centre and the joint venture subsidiary—clearly demonstrates Pavna's dedication to technological advancement and strategic expansion within the dynamic landscape of automotive and adjacent component manufacturing.

About the Company

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.

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. ccording to Quarterly Results, the company reported net sales of Rs 60.40 crore and net loss of Rs 1.72 crore in Q1FY26 while in its annual results, the company reported net sales of Rs 308.24 crore and net profit of Rs 8.04 crore in FY25.

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 490 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 22 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.