Pritika Auto Q4 FY26 PAT INR4.77 Crores, FY26 Revenue Up 35%

For the quarter ended March 31, 2026:

For the full year ended March 31, 2026 (FY26):

Consolidated Revenue: INR 482.95 crores (vs. INR 356.89 crores in FY25), representing a growth of 35.32% year-on-year.
EBITDA: INR 71.03 crores
EBITDA Margin: 14.71%
Profit After Tax (PAT): INR 23.20 crores

Performance for the first nine months of FY26 (Apr-Dec 2025) was also provided for context:

Management noted that FY26 represents the company's strongest annual revenue performance since listing.

Production Volume: Full year FY26 production stood at 52,620 metric tons, the highest in any single financial year in the company's history. Q4 FY26 production was 14,193 metric tons.
Installed Capacity: Total consolidated installed capacity is in excess of 72,000 metric tons per annum across facilities in Dera Bassi, Hoshiarpur, Mohali, and Tahliwal.
Capacity Utilization: Current utilization is approximately 73-74%. The maximum achievable utilization is 80-85%.
Product Mix: The company focuses on manufacturing 100% machined castings, not raw castings. It is shifting its product mix towards high-weight, high-value "large castings" (e.g., gearboxes, transmission cases, differential carriers) which offer better realizations and margins and face less competition.
Core Customers: Key OEM relationships remain with M&M Swaraj, TAFE, Escorts Kubota, Ashok Leyland, Case New Holland, and Kion. The top three customers contribute approximately 50-55% of revenue.

Revenue Target: The medium-term revenue target is INR 600 crores, expected to be achieved through a combination of volume growth, scaling high-value products, and contributions from the railways vertical.
FY27 Growth Guidance: Management expects to grow revenue by approximately 15% in FY27.
Margin Outlook: EBITDA margins are expected to revert to and improve upon historical levels (15-16%) in FY27, aided by better capacity utilization and the pass-through of increased raw material costs with a one-quarter lag.

FY27 Capex Plan: A strategic capex program is outlined for FY27 focused on capacity expansion, product development, and efficiency improvements. The planned investment is approximately INR 25-30 crores.
Capacity Addition: The company plans to add 7,800 metric tons of capacity in H1 FY27, which will increase total capacity to roughly 80,000 tons.
Long-term Capacity Vision: The long-term vision is to achieve 1 lakh tons of capacity. For FY28, a plan is in place to add 20,000-24,000 tons using Lost Foam Casting (LFC) technology.
Funding: FY27 capex will be funded by debt. The larger FY28 LFC expansion (estimated cost INR 60-70 crores) is planned to be funded by a combination of debt and equity.

Railways: Product development and qualification work for the railways segment is ongoing. Revenue is not yet material, but initial contributions are expected to begin in FY27. This is considered an important medium to long-term growth lever.
US Market Entry (Omnia Engineering Inc.): In April 2026, subsidiary Pritika Engineering Components Limited completed the first tranche of an investment, acquiring a 100% stake in Omnia Engineering Inc. (a Delaware, USA entity) for $50,000. This is part of a Board-approved plan to invest up to $100,000. The strategic intent is to establish a foothold in the U.S. market to explore engineering sector opportunities and deal directly with U.S. customers for better margins. Initial operations may involve manufacturing in India and finishing in the US, with a potential future acquisition or setup of a US manufacturing facility. EBITDA margins for US operations are expected to be 18-20%.
Exports: The company has recently started exporting to South Korea and is exploring opportunities in Europe. Management believes India can now compete effectively with China on cost (labor, power) in the foundry sector.

Current Contribution: LFC currently contributes 10-15% to revenue and represents 20% of the current order book.
Strategic Advantage: LFC technology requires roughly 50% of the capital expenditure (capex) compared to conventional sand casting for producing large castings with high core content. For example, a 3,000-ton LFC facility can be set up for ~INR 75 crores vs. INR 120-150 crores for a conventional facility.
Margin Profile: LFC products typically yield margins that are 1-2% higher than conventional products.
Growth Target: The long-term project is to increase the contribution of LFC to 30% of the business over the next three years.

Tractor Segment: Management expects the tractor industry to see low single-digit growth (6-8%) in FY27. However, the company expects to outpace this with its 15% growth guidance, supported by new products and projects.
Macro Factors: The demand fundamentals for tractors remain intact for FY27, supported by factors like monsoon outlook, rural income stability, and government focus on the rural economy. Government infrastructure and capex spending are also supporting Commercial Vehicle (CV) demand.
EV Impact: The electrification horizon for the company's served segments (tractors and commercial vehicles) is materially longer than for passenger vehicles, and no near-term structural disruption to the core business is anticipated.

Net Debt: Stood at approximately INR 180 crores as of the end of FY26.
Leverage Policy: The management is comfortable with the current net debt-to-equity of ~0.65 and intends to keep it below 1 for any future expansion.
Capital Allocation Philosophy: The company will invest where returns justify deployment and will not pursue growth at the cost of balance sheet discipline.

Hoshiarpur Land Acquisition: The company withdrew from an auction for land acquisition due to ongoing litigation and has received a refund. This development does not impact immediate expansion plans for the next 1-2 years. The company is looking to acquire new land elsewhere in the next 2-3 months.

Q4 Margin Dip: The decline in EBITDA margins in Q4 (to ~12%) was attributed to a significant increase in raw material prices and other costs (gas, contractual labor, outsourced work) in March, partly due to geopolitical disruptions. These costs are generally pass-through to customers with a lag.
Product Mix & Margins: The product mix consists of roughly 60% legacy components (with reduced margins over time) and 40% new components (with better margins). The shift towards more new, high-value components is a key margin driver.
Order Book: The company is currently "overbooked" with an order book estimated to be easily over INR 500-600 crores.