According to reports from The Financial Express, Poojaa Precision Engg. has demonstrated impressive financial growth with revenue increasing from ₹130 crore in FY22 to ₹293 crore in FY26, while operating profit margin improved from 12% to 18% during the same period. In the first half of FY27, the company achieved 68% year-on-year revenue growth to ₹210 crore, with operating EBITDA rising 73% to ₹40 crore and EBITDA margin expanding to 19%. Management is targeting 50% revenue growth in FY27, followed by annual growth of 30-35%, with an ambitious goal to reach ₹1,000 crore in annual revenue by FY30.
As reported by The Financial Express, the company maintains a ₹1,180 crore order book at the time of its first-half FY27 earnings call, which represents approximately four times its FY26 revenue. Management expects these orders to be fulfilled over approximately two years. The company has also indicated that annual requests for quotations exceed ₹2,000 crore, with a conversion rate of around 8-10%, which could replenish the order book as existing orders are fulfilled. Poojaa Precision manufactures aluminium die-cast and precision-machined components for automotive and non-automotive industries, with a portfolio of more than 600 stock-keeping units (SKUs).
According to The Financial Express, the company is preparing to nearly double its manufacturing capacity by FY28, with melting capacity expected to rise from 13,800 metric tonnes to 28,800 metric tonnes, while casting and finishing capacity will increase from 6,000 metric tonnes to 12,600 metric tonnes. The new facility is expected to be fully operational by September 2027 and requires an investment of ₹106.34 crore. The company has successfully diversified beyond automotive, with non-automotive revenue growing 194% year-on-year to ₹53 crore in H1 FY27, accounting for approximately 25% of sales compared to 15% in H1 FY26. Management aims for automotive and non-automotive businesses to contribute roughly equally by FY30.
As reported by The Financial Express, the company faces working capital challenges with debtor days rising from 32 in FY21 to 65 in FY26, while inventory days increased from 102 in FY25 to 148 in FY26. The company generated around ₹24 crore in operating cash flow in FY26, against investing outflows of approximately ₹57 crore, leaving free cash flow negative at around ₹33 crore as the company invested in expanding capacity. Despite these challenges, the company maintains a low debt-to-equity ratio of 0.08 and healthy interest coverage of 12.9 times. The stock trades at 43.5 times earnings with a return on capital employed of 33%.
According to The Financial Express, the company's growth strategy is supported by the expanding Indian auto component industry, which recorded turnover of ₹7.6 lakh crore in FY26, growing 12.7% over the previous year. The Indian precision engineering industry is benefiting from rising demand across automotive, electric vehicles, power distribution and industrial applications. However, the report notes that customer concentration remains significant with the five largest customers accounting for around 75-78% of revenue, with the largest contributing approximately 30-35%. The stock has delivered exceptional returns, rising 110% from its listing price of ₹470 to close at ₹988 per share, though investors must monitor whether the company can fulfill its ambitious targets while maintaining profitability and managing working capital requirements effectively.
