Pavna Industries pivots to high-margin business, plans expansion

Pavna Industries Limited has reported its revised 31st Annual Report for the fiscal year 2024-25, showing consolidated revenue from operations of Rs. 308.24 crore and a net profit after tax of Rs. 8.04 crore. The period saw a strategic transition towards high-margin proprietary segments, resulting in a 33% decline in PAT compared to the previous year's Rs. 12 crore as the company reduced its lower-margin casting business. Notably, the proprietary business segment grew by over 20%.

Key strategic initiatives include acquiring a 4,335 sq. meter plot in Pantnagar, Uttarakhand, for a new greenfield plant focused on proprietary components, and approximately 11.49 acres for future expansion in South India, including a plant in Hosur. These expansions aim to enhance operational efficiency and strengthen market presence, particularly in the e-lock and EV segments. The company also entered a joint venture agreement with SmartChip Microelectronic Corporation (SMC) to bolster its electronic component manufacturing for the automotive industry.

In financial governance, the company’s current ratio increased by 216.35% to 3.21, and its debt-to-equity ratio decreased by 91.05% to 0.15, attributed to preferential share issuance and debt repayment. Shareholders approved a fund-raising initiative of up to ₹320 crore via a Qualified Institutional Placement (QIP) and a 1-for-10 stock split, effective September 1, 2025.