PPAP Automotive exits JV for ₹100 Cr, focuses on independent growth
PPAP Automotive sold its JV stake for ₹100 Cr, using proceeds for debt reduction and capex. Q3 FY26 revenue was ₹138.9 Cr with PAT of ₹6.61 Lakhs. FY26 revenue is projected at ₹575 Cr, with PAT of ₹8 Cr (excluding JV gain). Aftermarket business grew over 30% YoY.
The sale of the joint venture stake for a substantial amount of ₹100 crores and the strategic shift towards independent growth and diversification are significant events that will materially impact the company's financial health, operational strategy, and future growth prospects.
The company has successfully exited a JV that was a drag on its finances, receiving a significant sum that will strengthen its balance sheet and fund growth. Diversification into new areas like the lithium-ion battery business shows promise, and the aftermarket segment is performing well. This strategic move is expected to unlock new growth avenues.
PPAP Automotive Limited has successfully completed the sale of its 50% stake in its joint venture with Tokai Kogyo Company Limited, Japan. The company received ₹100 crores for its shareholding, which will be used to reduce net debt and fund strategic capital expenditure initiatives. The JV, formed in 2012 to manufacture EPDM-based rubber components and TPV glass run channels, had invested ₹48.5 crores by PPAP but consistently exerted a drag on consolidated financial performance.
The exit is expected to significantly enhance PPAP's strategic flexibility, enabling it to pursue independent growth initiatives, accelerate expansion, and diversify its product portfolio across multiple segments and geographies. The company's Chennai plant is currently undergoing expansion and is expected to be ready by April 2026.
For the quarter ended December 31, 2025, PPAP Automotive reported consolidated revenue from operations of ₹138.9 crores, broadly in line with the previous year. The company posted a profit after tax of ₹6.61 lakhs for Q3 FY26, a turnaround from the preceding quarter's loss. For the 9-month period ended December 2025, consolidated revenue was ₹392.47 crores, with a PAT loss of ₹225 lakhs. The company projects FY26 revenues at approximately ₹575 crores with an estimated EBITDA of ₹58 crores and PAT of ₹8 crores, excluding the extraordinary gain from the JV stake sale.
The aftermarket business, operated by Elpis Automotive, demonstrated over 30% year-on-year growth in Q3 FY26. The commercial tool room business and the Industrial Products division are also showing steady progress, with plans to scale meaningfully. The lithium-ion battery pack business, under Avinya Batteries Limited, is approaching a turnaround phase, achieving its highest monthly sales in December 2025.
The transcript of the earnings conference call held on February 16, 2026, to discuss the financial results for the quarter ended December 31, 2025, has been uploaded on the company's website and stock exchanges.
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PPAP Automotive Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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