Pricol Limited, an automotive components manufacturer, will invest up to INR 6 billion over FY2026 and FY2027 to expand manufacturing capacity, establish new facilities, and introduce new product verticals. The details were shared by the management during the company’s earnings conference call for the quarter and half year ended 30 September 2025.
“We are again beginning to start another capex cycle because of the acquisition of the new business and several new product opportunities,” said Vikram Mohan, Managing Director of Pricol Limited. “This year, it will be somewhere in the region of INR 2.5 to 3 billion and next year would be a very similar number.” He added that the company is also in the process of purchasing land for new manufacturing plants, with legal due diligence nearly complete and construction planning underway.
The investment cycle follows the acquisition of Pricol Precision Products Private Limited, formerly the injection moulding division of Sundaram Auto Components. The business, which reported an EBITDA margin of 6.3 percent at the time of takeover in March 2025, has improved to 9.5 percent by September 2025. “We have been having about 0.5 percent EBITDA improvement every month since we have taken over, with all the restructuring activities that we have planned,” Mohan stated.
Capacity utilisation across major divisions remains high. The polymer business is operating at 94–95 percent utilisation, while the Actuation and Control Systems (ACFMS) division is at 80–85 percent. “We are enhancing capacities because of the high utilisation,” Mohan said. “Once we expand the DICVS (Driver Information and Connected Vehicle Solutions) division, utilisation there will come down to about 70 percent, creating room for growth.”
For FY2026, Pricol expects annual revenue of INR 8.5 to 9 billion from the polymer division, about INR 6 billion from ACFMS, and INR 21 to 22 billion from DICVS. The company projects steady EBITDA margins of around 9.5 percent for polymers and 12.5–13 percent for DICVS. “The ACFMS division will go through a very steep growth curve in the next 36 months,” Mohan said. “We are going to be seeing about 30 to 35 percent growth year-on-year.”
The company is expanding its customer base with new business wins from Ather, Hanon, Autoliv, and Schneider, and ongoing discussions with Hero MotoCorp, Honda, Bajaj Auto, and Tata Motors. “We have won a lot of business from these customers and are in the final stages of getting business awarded,” Mohan said. Pricol has already started production for Honda’s motorcycle and electric vehicle models, while Yamaha has completed audits and certification and is in commercial discussions.
The company has also begun production of disc brake systems for electric two-wheelers. “Disc brake has gone into productionisation about six months back,” said P.M. Ganesh, Chief Executive Officer and Executive Director. “We have won a large business from the top five OEMs in the country, which will go into production from the first quarter of next year.” He added that demand for disc brakes is expected to rise after ABS becomes mandatory for all two-wheelers from January 2026.
Pricol is investing in new technology partnerships to diversify its portfolio. The company has signed a technology licence agreement for handlebar-mounted switch systems, expected to start generating revenue in about two years. “We are starting our customer roadshows shortly with two large anchor OEMs in India,” Mohan said. “Revenue from this new vertical is about 24 months away.”
Separately, the company has partnered with BOE for optical bonding and screen manufacturing used in instrument clusters. “We are constructing the premises and have finalised the project cost, which will be spent over the next nine months,” Mohan said. “This is a backward integration initiative to make our business more self-reliant and achieve cost arbitrage.”
Pricol reiterated its target of achieving INR 80 billion in annual revenue by FY2031, supported by continued investment in capacity, technology, and customer expansion. “Capex will be an ongoing affair as and when we acquire businesses and create capacity,” Mohan said.
Pricol Limited, headquartered in Coimbatore, manufactures automotive instrument clusters, sensors, actuation systems, telematics products, and polymer components for two-wheeler, passenger vehicle, and commercial vehicle segments.
