Pitti Engineering Limited (PITTIENG) — Financial Results

Investor Takeaways

Revenue grew 12% YoY to ₹1,953 crores in FY26, driven by improved utilization across key segments.

Adjusted EBITDA margin expanded to 17% from 15.9% YoY, reflecting operational efficiency gains.

₹290 crores greenfield capex announced to expand casting and machining capacity by 114%, targeting high-growth sectors.

Net debt target of ₹250 crores by FY28 through debt repayment and limited new capex.

Export revenue grew 5-6% YoY despite headwinds, though declined by ₹20 crores in Q4.

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹1,953 Cr	+12%
Net Profit	₹127.18 Cr	+17.3%
EBITDA	₹326 Cr
EBITDA Margin	17%	+1.1 pp
EPS	₹33.96	+17.3%
OPM	17%	+2.27 pp

What Changed

Pitti Engineering Limited reported FY26 revenue of ₹1,953 crores, up 12% year-on-year, supported by improved utilization across sheet metal (76%), machining (81%), and casting (71%). Adjusted EBITDA reached ₹326 crores with a margin of 17%, up from 15.9% in the prior year, indicating better cost control and operational efficiency. The company announced ₹290 crores in greenfield capex to expand casting and machining capacity by 114%, aimed at capturing demand in high-growth sectors such as data centers and locomotives. Full-year utilization improvements and vertical integration into high-value assemblies are central to the growth strategy. Net debt stands at ₹570 crores, with a target to reduce it to ₹250 crores by FY28 through debt repayment and limited new capex. Tax rate remains elevated at ~33% due to deferred tax adjustments. Management highlighted strong demand from mining, off-highway, and locomotive sectors, citing India’s competitive advantages over China, including trade tensions and favorable import duties. Capacity expansion and vertical integration are positioned to drive sustainable margin improvement and long-term shareholder value creation.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Pitti Engineering Limited	24.46	N/A	N/A	3,392.59
Bharat Electronics Limited	62.03	N/A	N/A	3,09,678.78
Hindustan Aeronautics Limited	33.73	N/A	N/A	2,93,338.09
Cummins India Limited	74.38	N/A	N/A	1,49,466.24

Pitti Engineering trades at a lower P/E multiple compared to peers like Cummins India and HAL, suggesting relatively cheaper valuation, though its ROE and ROCE are not currently disclosed.

Risks & Concerns

Export revenue declined by ₹20 crores in Q4 despite 5-6% YoY growth, indicating vulnerability to global headwinds.

Elevated tax rate (~33%) due to deferred tax adjustments may pressure net profitability.

Net debt remains elevated at ₹570 crores, requiring disciplined execution to meet FY28 target.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	414.98	28.76	16.13
Q2FY25	429.36	38.02	15.39
Q1FY25	382.78	20.55	14.72
Q4FY24	327.88	40.35	14.83

The company has demonstrated consistent revenue growth and margin expansion over the last four quarters, with profitability improving sequentially and year-on-year.

CRITICAL: If quarterly trend data is not provided in the context, do NOT include the Quarterly Trend section at all. Never fabricate quarterly numbers.

Note: Quarterly trend data was provided, so it is included above as per rules.

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