PG Electroplast Expects Spiro Mobility Deal Rake In Rs 500 Crore Revenue In Two Years

PG Electroplast’s foray into EV manufacturing with the Spiro Mobility deal is likely to add Rs 500 crore to the company’s revenue by the financial year 2026–27.

Its Managing Director Vikas Gupta told NDTV Profit, “We are looking at a revenue of around Rs 500 crore by the second year of operation of this EV manufacturing. Going forward, we are looking at localising much more content domestically. Let us see how it goes. We are very bullish on this category.”

Last week, the company’s subsidiary PG Technoplast Pvt. had signed a definitive agreement with Spiro Mobility to become an exclusive manufacturing partner for producing electric two-wheelers (Spiro) in India.

Under the agreement, PG Technoplast will set up and manage the manufacturing facilities for electric two-wheelers, lithium-ion batteries, and related components for Africa’s largest EV player.

The top executive further revealed that manufacturing of Spiro Mobility’s electric two-wheelers and related components will start in the first quarter of FY26. “Spiro is Africa’s largest two-wheeler EV manufacturer. We will be starting the manufacturing of two-wheeler EVs and battery packs in Q1FY26,” he said.

Gupta predicted that the company’s Ebitda margin from its EV business could be in the range of 3–4% after operations get to full scale.

“The margin profile of this business is like the margin profile of EMS business where the margins are in the range of 2–3% and Ebitda will be 3–4% but the asset turns will be quite high. We should be able to achieve asset turns of around 10–15%. We are targeting RoCE (return on capital employed) and ROE (return on equity) ratios in line with the current profiles of the company of 20–25%,” he said.

Elaborating on setting up of the manufacturing unit, the PG Electroplast MD said, “We will be setting up a dedicated manufacturing setup in our existing facility near Pune. It is a contract manufacturing agreement, where the IP belongs to Spiro and we will be doing prescriptive manufacturing. We will make an investment of Rs 25 crore to Rs 30 crore initially.”

Gupta projected that the company is expected to grow at a compounded annual growth rate of 25–30% in the next 3–4 years, on the back of new capacity additions.

“The kind of opportunity we have is very large. We are hopeful that we should be able to grow our company at a CAGR of almost 25–30% going forward for the next three or four years as well. For that also, we will require a lot of new capacities,” he said.

Shares of PG Electroplast closed 0.96% lower at Rs 677.6 apiece on the NSE on Monday, compared to the benchmark Nifty 50 settling 1.32% higher.