Pitti Engineering Limited – Investor Presentation Summary

Key Operational Highlights

  • Total Lamination & Assemblies sales volume reached 19,240 MT in Q1FY27, representing 18.8% YoY growth from 16,193 MT in Q1FY26
  • High value-added assemblies (Laminations) showed strongest growth at 37.1% YoY to 4,143 MT
  • Stator frame or Rotor shaft integrated assemblies grew 21.7% YoY to 1,212 MT
  • Loose Laminations and low value-added assemblies increased 16.0% YoY to 12,920 MT
  • Castings capacity was enhanced from 18,600 MTs to 24,600 MTs as of 10th August 2026

Key drivers of operational performance: Increased capacity utilization, growth in high-value assemblies, and expanded product portfolio including components for traction motors and railway applications

Segment-wise Performance

The company operates primarily in electrical laminations and machined components:• Laminations segment (core business) showed 20.6% volume growth YoY• Machined components segment declined 7.3% YoY to 965 MT

Explanation of significant changes in segment performance: Growth driven by increased demand for value-added assembled laminations, particularly in export markets and railway sector applications

Financial Highlights

Revenue: ₹529.1 crore (Q1FY27)

EBITDA: ₹88.7 crore (Adjusted, excluding other income & ESOP cost)

PAT: ₹29.5 crore (Reported); ₹31.9 crore (Adjusted, adding back ESOP cost)

EPS: Not specified in presentation

Margins: Gross Profit Margin 39.4%, Adjusted EBITDA Margin 16.8%, Adjusted PAT Margin 6.0%

YoY/QoQ comparison: Revenue grew 15.9% YoY and 5.6% QoQ; Adjusted PAT increased 24.6% YoY and 10.0% QoQ

Drivers of financial performance: Higher sales volumes, improved product mix toward value-added assemblies, operational efficiencies

Comparison to market estimates: Not provided in presentation

Key Risks: Raw material price fluctuations, competition, export market dependencies (implied but not explicitly stated)

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not explicitly quantified in presentation, but company highlights "Exports Dominance" as a key strength

Regional Breakdown: Exports to USA, Mexico, Germany, Vietnam mentioned historically, but current quarter breakdown not provided

Balance Sheet Snapshot

Net Debt/Equity: Not directly specified, but total debt (current + non-current borrowings) of ₹698.8 crore against equity of ₹986.9 crore as of Mar'26

Reserves: ₹968.1 crore in Other Equity (Mar'26)

Current Assets/Liabilities: ₹905.3 crore current assets vs ₹645.4 crore current liabilities (Mar'26)

Working Capital/Leverage Metrics: Inventory of ₹394.9 crore, trade receivables of ₹206.3 crore, trade payables of ₹243.4 crore (Mar'26)

Financial Health Insights: Strong cash generation with operating cash flow of ₹204.9 crore in FY26, cash equivalents of ₹119.5 crore (Mar'26)

Capex & Cash Flow Health

Capital Expenditure: ₹290 crore greenfield machined components capacity planned; ₹150 crore additional capex approved; ₹270 crore capex outlay previously approved

Free Cash Flow: Not explicitly stated

Operating Cash Flow: ₹204.9 crore net cash from operating activities in FY26

Net Debt Movement: Not specifically disclosed for current quarter

Investment Rationale: Focus on capacity expansion, technology upgrades, and vertical integration to enhance margins and market position

Strategic & R&D Initiatives

Investments in Innovation: State-of-the-art manufacturing facilities, SAP software implementation, advanced manufacturing capabilities for customized solutions

Expected impact on growth: Greenfield project expected to be commissioned by Q1FY29, casting capacity to increase >2x to 36,000 MT

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through vertical integration, focusing on margin-accretive value-added products

Industry Trends & Business Environment

Macro/Industry Trends: Growing demand for electrical laminations in diverse industries including railways, energy, and industrial applications

Impact on Company: Benefiting from increased infrastructure spending, railway modernization programs, and export opportunities

Management Commentary & Growth Outlook

Strategic Outlook: "Building the Path for Accelerated Growth" with focus on vertical integration, engineering expertise, and quality-driven manufacturing

FY Guidance: Not explicitly provided, but significant capacity expansion plans indicate growth expectations

Market Share Targets: Company positions itself as "Largest manufacturer and exporter of electrical laminations in India"

Risks and Opportunities: Mentioned forward-looking statements subject to risks including economic performance, competition, and implementation capabilities

ESG Updates

Not specifically addressed in the presentation

Digital Transformation

SAP software implementation for centralized operations management mentioned as key operational strength