Pitti Engineering (513519) Q1 25/26 earnings summary

Executive summary

• Achieved consolidated Q1 FY26 revenue of INR 457 crores, up 17% year-on-year, with exports contributing 31% of revenue.

• EBITDA rose 30% year-on-year to INR 75 crores, with margins improving to 16.5% from 14.8% in Q1 FY25.

• Profit after tax increased 18% year-on-year to INR 23 crores, maintaining a PAT margin of 5%.

• Strategic acquisitions and mergers completed in FY25 and FY26 have enhanced product portfolio, capacity, and customer base.

• Q1 and Q2 are seasonally softer, with 45% of annual revenue typically generated in H1 and 55% in H2.

Financial highlights

• Sheet metal volumes for the quarter were about 16,000 metric tons.

• EPS for Q1 FY26 was ₹6.14–₹9.61, up from ₹5.65 in Q1 FY25.

• Net debt increased to INR 525 crores, mainly due to higher inventory from raw material stocking and changes in export receivables factoring.

• Working capital cycle extended from 57 to 75 days, driven by inventory buildup and changes in receivables management.

• FY25 revenue from operations was ₹1,704.6 Cr, up 37% year-over-year.

Outlook and guidance

• Management maintains FY26 revenue growth guidance of 15%, targeting around INR 2,000 crores.

• FY27 revenue guidance is expected to be revised upward, with strong order visibility and robust pipeline.

• Margin expansion anticipated as capacity utilization increases, with Q4 expected to operate at peak capacity.

• CapEx of INR 150 crores approved for phased capacity expansion over 18 months, supporting future growth.

• Focus on margin-accretive, value-added products and further integration of recent acquisitions.