Pitti Engineering (513519) Q4 25/26 earnings summary

Executive summary

• Transitioned from basic electrical steel laminations to integrated engineering solutions, focusing on machining, casting, fabrication, and high-value assemblies.

• Achieved total income of ₹1,953 crore in FY26, up 12% year-over-year, with consolidated revenue from operations at ₹1,912.8 crore, a 12.2% increase from FY25.

• Adjusted EBITDA rose 20% to ₹326 crore in FY26, with margin improving to 17.0% from 15.9% in FY25.

• Despite macroeconomic headwinds like tariff wars, inflation, and West Asia crisis, maintained healthy demand and diversified supply chains.

• Board approved a ₹290 crore capex for a greenfield casting and machined components facility, to be completed in three years and funded by internal accruals and lease finance.

Financial highlights

• Q4 FY26 revenue from operations: INR 506 crores, up 7% YoY.

• FY26 revenue: INR 1,953 crores, up 12% YoY; adjusted EBITDA for FY26: INR 326 crores, up 20% YoY; margin improved to 17% from 15.9%.

• Adjusted PAT for FY26 was ₹128 crore, up 4% year-over-year, with an adjusted PAT margin of 6.7%.

• Gross profit for FY26 was ₹753.1 crore, up 9.5% year-over-year, with a gross margin of 39.4%.

• FY26 cash and cash equivalents stood at ₹119.5 crore, up from ₹98.7 crore in FY25.

Outlook and guidance

• Targeting 78,000 tonnes of lamination sales and 16,000 tonnes of machine components in FY27.

• Projected FY27 revenue: ~INR 2,300 crores, with margins expected to remain similar to FY26.

• Capacity utilization expected to approach 80% by FY27; further CapEx for laminations may be considered post-FY28.

• Greenfield facility with ₹290 crore capex to double casting capacity to 36,000 MT by Q1FY30.

• The project aligns with the strategy to consolidate operations and enhance capacity readiness.