Poojaa Precision: Rs 1,180 Cr Orders Fuel Expansion

Poojaa Precision Engg., an auto component manufacturer, is experiencing a significant growth phase driven by a Rs 1,180 crore order book. This substantial backlog is approximately four times its FY26 revenue and is expected to be fulfilled over the next two years.

The company plans to nearly double its manufacturing capacity by FY28, with a new facility expected to be operational by September 2027. This expansion is part of a strategy to achieve Rs 1,000 crore in annual revenue by FY30.

Financially, Poojaa Precision saw revenue increase from Rs 130 crore in FY22 to Rs 293 crore in FY26, with operating margins improving to around 19% in H1 FY27. Management targets 50% revenue growth in FY27 and 30-35% annually thereafter.

However, challenges include managing a surging working capital, with debtor days rising to 65 and inventory days to 148 in FY26. The company's ability to convert its large order book into revenue and cash efficiently will be crucial for its valuation.

Customer concentration remains a point of attention, as the top five customers accounted for 75-78% of revenue in FY26. Diversification into non-automotive and aerospace sectors is underway, aiming for a balanced revenue contribution by FY30.