Board Meeting Details

The Board of Directors meeting commenced at 4:30 p.m. and concluded at 8:00 p.m. on Tuesday, May 26, 2026.

Key Decisions Approved

1. Approved audited Financial Results (Standalone and Consolidated) for the quarter and year ended March 31, 2026

2. Appointment of M/s. R Krishna & Associates, Chartered Accountants as Internal Auditors for FY 2026-27

3. Appointment of M/s. Kandikonda & Associates, Cost Accountants as Cost Auditors for FY 2026-27

4. Investment in ZAP91 Solar India Private Limited, a joint venture company (details in Annexure-A)

Financial Results Overview

Consolidated Financial Highlights - FY26

  • Total Income: ₹3,666.32 crore (up 12.35% from ₹3,263.27 crore in FY25)
  • EBITDA: ₹401.32 crore (up 15.51% from ₹347.44 crore in FY25)
  • PAT: ₹138.83 crore (up 16.22% from ₹119.45 crore in FY25)

Consolidated Financial Highlights - Q4FY26

  • Total Income: ₹933.70 crore (up 2.26% from ₹913.05 crore in Q4FY25)
  • EBITDA: ₹114.06 crore (up 15.27% from ₹98.95 crore in Q4FY25)
  • PAT: ₹41.04 crore (up 14.89% from ₹35.72 crore in Q4FY25)

Standalone Financial Position (as at March 31, 2026)

  • Total Assets: ₹307,927.70 lakhs
  • Total Equity: ₹97,920 lakhs
  • Total Liabilities: ₹209,357 lakhs

Consolidated Financial Position (as at March 31, 2026)

  • Total Assets: ₹355,059 lakhs
  • Total Equity: ₹116,315 lakhs
  • Total Liabilities: ₹238,744 lakhs

Audit Details

Statutory Auditors MSKA & Associates LLP (formerly MS K A & Associates) issued unmodified audit opinions on both standalone and consolidated financial results. The audit reports were signed by Prakash Chandra Bhutada, Partner (Membership No. 404621).

Subsidiaries and Joint Ventures Included

The consolidated results include financials of 14 entities:

1. Pennar Global Inc, USA (Wholly Owned Subsidiary)

2. Pennar GmbH, Germany (Wholly Owned Subsidiary)

3. Enertech Pennar Defense and Engineering Systems Private Limited, India (till September 26, 2025)

4. Pennar Metals Private Limited (Wholly Owned Subsidiary)

5. Pennar Global Metals Inc., USA (Step Subsidiary)

6. Ascent Buildings LLC., USA (Step Subsidiary)

7. Cadnum SARL, France (Step Subsidiary)

8. Pennar Global Investments LLC (Step Subsidiary)

9. Pennar FZCO (w.e.f November 15, 2024) (Wholly Owned Subsidiary)

10. ZAP91 Solar India Private Limited (w.e.f December 27, 2024) (Joint Venture - 45%)

11. Pennar Americas Engineering LLC (w.e.f January 29, 2025) (Step Subsidiary)

12. Pennar Americas Hydraulics LLC (w.e.f January 29, 2025) (Step Subsidiary)

13. Ascent Structural LLC (w.e.f June 03, 2025) (Step Subsidiary)

14. Pennar Global Investments Alabama, LLC (w.e.f June 16, 2025) (Step Subsidiary)

15. Agile Traders FZCO (w.e.f December 17, 2025) (Step Subsidiary)

The subsidiaries' financial statements reflect total assets of ₹68,059 lakhs, total revenue of ₹95,962 lakhs, and total net profit after tax of ₹3,773 lakhs for year ended March 31, 2026.

The joint venture (ZAP91 Solar India Private Limited) reflects the Group's share of net loss after tax of ₹28 lakhs for the year ended March 31, 2026.

Order Book Update

Pennar Industries received orders worth ₹902.26 crore across various business verticals in the last three months, expected to be executed in coming quarters. Key customers include Reliance, JSW Steel, Air India, Toyota Boshoku, Saint Gobain, Thermax, and others across PEB, ICD, Tubes, Steel, and Railway verticals.

Subsequent Events

Subsequent to the quarter ended March 31, 2026, the Board approved the issue of 30,00,000 convertible equity warrants to one of the promoters on preferential basis at ₹168 per warrant, aggregating to approximately ₹5,040 lakhs. This was approved by shareholders on May 08, 2026, and in-principal approval from stock exchanges is awaited.

Segment Information

The company operates in two business segments:

1. Diversified Engineering: Revenue of ₹187,177 lakhs in FY26

2. Custom Designed Building Solutions & Auxiliaries: Revenue of ₹183,560 lakhs in FY26

Cash Flow Highlights

Consolidated Cash Flows for FY26

  • Net cash from operating activities: ₹20,212 lakhs
  • Net cash used in investing activities: ₹(34,930) lakhs
  • Net cash from financing activities: ₹21,107 lakhs
  • Net increase in cash: ₹6,389 lakhs

Standalone Cash Flows for FY26

  • Net cash from operating activities: ₹18,567 lakhs
  • Net cash used in investing activities: ₹(22,726) lakhs
  • Net cash from financing activities: ₹9,731 lakhs
  • Net increase in cash: ₹5,572 lakhs

Key Appointments

Internal Auditors

R Krishna & Associates, Chartered Accountants appointed for FY 2026-27. The firm was established in 2012 in Hyderabad and provides audit, taxation, advisory, and accounting services.

Cost Auditors

Kandikonda & Associates, Cost Accountants appointed for FY 2026-27. The proprietor Mr. K. Sadaiah has 20 years of experience and holds qualifications including Fellow Member of the Institute of Cost Accountants of India.