Synopsis: Board has approved a strategic business restructuring to create two focused companies, aiming to improve operational focus, support future growth, and provide shareholders with ownership in both businesses.
The shares of this small cap company majorly engaged in manufacturing and selling of instrument clusters and other allied automobile components to OEMs and replacement markets were in focus after the board considered demerger to support future growth.
With the market capitalization of Rs. 7199 Crores, the shares of Pricol Ltd were trading at around Rs. 591 per share which is 15 percent discount from its 52 week high of Rs. 695 per share and is trading at a P/E of 28.7 whereas industry P/E stands at 28
What is the NEWS
Pricol’s Board has approved a scheme to demerge its Driver Information & Connected Vehicle Solutions (DICVS) business into Pricol Autotech Limited. The DICVS business generated Rs. 2,424.63 crore in FY26, contributing 61.17 percent of the company’s consolidated revenue, making it the largest business segment being separated.
Following the demerger, Pricol will continue to operate its Actuation, Control & Fluid Management Systems (ACFMS) and Precision Products (P3L) businesses, while Pricol Autotech will focus entirely on automotive electronics, connected vehicle technologies, infotainment systems, battery management systems, telematics, sensors, and e-cockpit solutions.
The company said both businesses have reached a stage where they require different strategies, investment priorities, technology development, and management focus. By operating as separate companies, each business can make quicker decisions, allocate capital based on its own needs, improve operational efficiency, and pursue growth opportunities independently. The restructuring is also expected to improve visibility of each business for investors and support long-term value creation.
Under the approved scheme, shareholders will receive one fully paid-up equity share of Pricol Autotech for every one equity share held in Pricol (1:1 share entitlement ratio). After the demerger becomes effective, Pricol Autotech is proposed to be listed on both the NSE and BSE, allowing shareholders to own shares in both listed companies.
The proposal is still subject to approvals from the stock exchanges, the National Company Law Tribunal (NCLT), shareholders, creditors, and other regulatory authorities before the demerger can be implemented.
About the Company and Financials
Founded in 1975 in Coimbatore, Pricol Limited is one of India’s leading automotive technology and precision engineering companies. It operates 14 manufacturing plants (including subsidiaries), supported by 470+ product and process engineers and 2 technology centres, with around 4.5 percent of revenue invested in R&D. The company has 6 key strategic partnerships and supplies leading OEMs across 16 countries, serving both domestic and global automotive markets.
Year on Year analysis: Revenue from operations has increased from Rs. 769 Crores in Q4 FY25 to Rs. 1099 Crores in Q4 FY26, up 42 percent. Operating profit has increased from Rs. 80 Crores to Rs. 131 Crores, up 63 percent and net profit has increased from Rs. 35 Crores to Rs. 73 Crores, up 108 percent.
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 1039 Crores in Q3 FY26 to Rs. 1099 Crores in Q4 FY26, up 5.7 percent. Operating profit has increased from Rs. 121 Crores to Rs. 131 Crores, up 8 percent and net profit has increased from Rs. 64 Crores to Rs. 73 Crores, up 14 percent.
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