Auto Company Opens New R&D Centre In Noida, New Subsidiary Targets Booming EV Component Market; Shares React

With the approval of its joint venture subsidiary, Pavna SMC Private Limited, by the Ministry of Corporate Affairs on November 5, 2025, Pavna Industries Limited declared a significant strategic expansion. The newly formed entity represents Pavna's foray into the high-tech auto electronics market and was established in collaboration with Smartchip Microelectronics Corp.

Pavna Industries will hold an 80% stake, while Smartchip will own the remaining 20%. The business aims to provide cutting-edge electronic components for the automobile industry, serving both the internal combustion engine (ICE) and electric vehicle (EV) markets.

In keeping with Pavna's goal to diversify and take advantage of next-generation manufacturing technology, it will also manufacture hardware solutions for the smart lock, aerospace, and medical industries. This move establishes Pavna as a major participant in India's evolving auto-tech market and demonstrates the company's dedication to innovation.

Pavna Industries reaffirmed its dedication to innovation, quality, and technological advancement on Wednesday by announcing the opening of its new Research and Development (R&D) Center in Sector-63, Noida, Uttar Pradesh.

"The state-of-the-art R&D facility will focus on research and development of electronic components, lock systems, switches, and other advanced automotive solutions. The center aims to enhance the company's capabilities in designing and developing technologically advanced products tailored to evolving customer needs and global standards," said Pavna Industries in a stock exchange filing.

Mr. Swapnil Jain, Managing Director, Pavna Industries Ltd. said: "The establishment of our R&D Centre in Noida marks a significant milestone in our innovation journey. It reflects our unwavering commitment to technological excellence and to strengthening India's position in advanced automotive engineering. This facility will help us accelerate product development, improve efficiency, and deliver greater value to our OEM partners and end customers."

Previously known as Pavna Locks Limited, Pavna Industries Limited was established on April 19, 1994. The firm produces a broad range of automotive parts for reputable OEMs that cater to various vehicle categories, such as passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles, and off-road vehicles. The company's cutting-edge production facilities are strategically situated in Pantnagar, Uttarakhand; Aurangabad, Maharashtra; and Aligarh, Uttar Pradesh. The company is well-known both domestically and internationally, exporting to a number of nations, including Bangladesh, Italy, Sri Lanka, Indonesia, Sudan, and the United States of America.

Pavna Industries' net profit declined by 53.65% to Rs 1.27 crore in the September 2025 quarter compared to Rs 2.74 crore in the September 2024 quarter. Compared to Rs 83.73 crore in Q2FY25, sales fell 11.44% to Rs 74.15 crore in Q2FY26.

In accordance with Regulation 30 of SEBI (LODR) Regulations, 2015, Pavna Industries Limited has announced the signing of a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh. In accordance with the agreement, the company plans on investing Rs 250 crore over the course of the next three to five years to construct a new project in Uttar Pradesh, which is anticipated to create jobs for about 500 people. The state government will provide facilitation support under the Memorandum of Understanding by assisting the company in obtaining the required certifications, approvals, registrations, and incentives under a number of state and central programs. The company affirmed that this deal does not entail any related-party connections, share issuance, or special rights.

At 2:57 PM IST on Tuesday, the shares of Pavna Industries Ltd. were up 2% at Rs 31.41 each on the NSE. The company's market capitalization exceeds Rs 438 Cr.