Pitti Engineering Q2 FY27 results: net profit down 4.7% to ₹33.89 crore, revenue up 46.0%

How did Pitti Engineering perform in Q2 FY27?

Pitti Engineering reported standalone revenue of ₹578.44 crore for Q2 FY27, up 46.0% from ₹396.22 crore in Q2 FY26 and 30.9% from ₹441.82 crore in Q1 FY27. Total income was ₹580.54 crore, while EBITDA rose to ₹88.88 crore from ₹69.31 crore and ₹72.72 crore in the respective comparison quarters.

The EBITDA margin fell to 15.4% from 17.5% in Q2 FY26 and 16.5% in Q1 FY27. Profit before tax was ₹45.26 crore, down 5.0% year on year but up 82.9% sequentially; net profit was ₹33.89 crore, down 4.7% year on year and up 62.6% sequentially.

Basic EPS was ₹9.18, compared with ₹9.57 in Q2 FY26 and ₹5.65 in Q1 FY27. The results were reported on a standalone basis, and the company said the September 2026 amalgamation led to previous-period figures being restated.

What changed in Pitti Engineering's costs and profit?

Total expenses increased by ₹164.81 crore, or 44.5%, from ₹370.47 crore in Q2 FY26 to ₹535.28 crore in Q2 FY27. Cost of materials rose by ₹147.97 crore, or 61.0%, to ₹390.44 crore, while employee cost increased by ₹17.49 crore, or 54.4%, to ₹49.66 crore.

Other expenses were ₹85.78 crore, up ₹22.48 crore, or 35.5%, from ₹63.30 crore, while depreciation rose by ₹5.12 crore, or 21.1%, to ₹29.39 crore. Finance costs declined by ₹2.96 crore, or 15.3%, to ₹16.33 crore, and there was no exceptional item in either quarter.

Other income fell by ₹19.76 crore, or 90.4%, to ₹2.10 crore from ₹21.86 crore. Tax expense was ₹11.37 crore, down ₹0.66 crore, or 5.5%, from ₹12.03 crore. The EBITDA margin narrowed by 2.1 percentage points and the PAT margin declined by 3.1 percentage points to 5.9%.

How did the first half of FY27 go?

In H1 FY27, standalone revenue was ₹1,107.53 crore, up 42.2% from ₹778.70 crore in H1 FY26, while total income rose by ₹303.19 crore, or 37.6%, to ₹1,110.49 crore.

Profit before tax increased by ₹4.50 crore, or 5.8%, to ₹81.48 crore. Profit after tax rose by ₹10.24 crore, or 19.3%, to ₹63.39 crore, and EPS increased by ₹2.89, or 20.2%, to ₹17.17 from ₹14.28.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,247.02 crore, compared with ₹2,056.04 crore at 31 March 2026, while total equity was ₹911.70 crore against ₹951.36 crore. Borrowings fell to ₹640.43 crore from ₹698.85 crore, and cash declined to ₹59.08 crore from ₹73.99 crore.

Inventories increased to ₹478.70 crore from ₹365.78 crore, trade receivables rose to ₹216.90 crore from ₹176.21 crore, and trade payables increased to ₹474.79 crore from ₹226.01 crore. H1 operating cash flow was ₹323.02 crore, compared with ₹77.89 crore in H1 FY26.

Investing cash flow was negative ₹263.19 crore in H1 FY27 against negative ₹79.40 crore in H1 FY26, while financing cash flow was negative ₹120.20 crore compared with ₹24.68 crore. Capital expenditure was ₹256.68 crore, up from ₹83.70 crore.

How has Pitti Engineering done over the last 8 quarters?

Revenue reached its highest level in the series in Q2 FY27 at ₹578.44 crore, compared with a low of ₹363.71 crore in Q3 FY25. Net profit peaked at ₹35.58 crore in Q2 FY26, while the lowest reported profit was ₹17.57 crore in Q1 FY26; Q2 FY27 profit was ₹33.89 crore.

The EBITDA margin peaked at 19.1% in Q4 FY26 and fell to 15.4% in Q2 FY27, its lowest point in the eight-quarter series. Revenue rose year on year in each of the last two quarters. The latest quarter therefore combined higher revenue and profit with a lower margin than the preceding three quarters.

Which businesses drove the quarter?

India revenue was ₹424.11 crore in Q2 FY27, up 57.6% from ₹269.04 crore in Q2 FY26. Outside India revenue was ₹154.33 crore, up 21.3% from ₹127.19 crore. Segment EBIT and EBIT margins were reported as zero, so no segment profitability comparison is available.

What else did the company announce?

The board approved an estimated project cost of ₹450 crore to increase manufacturing capacity, add value-addition capabilities and consolidate fragmented lamination operations in Karnataka into one integrated facility. The project is to be implemented in phases up to FY 2030-31 and is intended to be financed through internal accruals and debt.

The board declared an interim dividend of ₹2 per equity share, or 40%, on shares of face value ₹5 each. The record date is 2 November 2026, with payment due by 21 November 2026. It also approved a second grant of 5,77,500 employee stock options at an exercise price of ₹736.72.

Effective 22 October 2026, Sandip Agarwala was redesignated Deputy Chief Executive Officer, Chaitra Sundaresh became COO of the Motor & Generator Components Business, and Avinash Arun Patil was promoted from President of Maharashtra Operations to Deputy Chief Operating Officer.

What did the auditors point out?

The auditors’ report included an Emphasis of Matter drawing attention to Note 4 of the financial results. It stated that the National Company Law Tribunal approved the amalgamation of Pitti Engineering with Pitti Industries Private Limited and Dakshin Foundry Private Limited, with an appointed date of 1 April 2026.

The company gave effect to the scheme from the appointed date and restated comparative financial information under Appendix C to Ind AS 103 for common-control business combinations. The auditors stated that their conclusion was not modified in respect of this matter, with no qualification or going-concern issue reported in the excerpt.

What did Pitti Engineering's management say?

Management said the approved Bangalore project totals INR450 crore, including INR125 crore for land and building and INR325 crore for infrastructure, plant and equipment, taking cumulative announced investment to INR740 crore. Normal demand should permit internal-accrual funding through FY31, while earlier demand could require debt.

At full FY31 utilisation, management said the expansion could support about INR3,800 crore of revenue, comprising roughly INR3,000 crore from laminations and INR850 crore from machine components. The company expects a sustainable blended EBITDA margin around 17% or better, with 18% potentially available depending on mix.

Management identified forex, input inflation, power costs and pre-ramp manpower as offsetting price pass-through in the quarter. It expects fuel and power pass-through from January, with margin improvement from Q4. No Maharashtra incentive recovery is expected in FY27; about INR40 crore annually is expected from FY28.

Akshay S. Pitti, Managing Director and CEO, said, “Potentially, 18% is available. 17% would be pretty much a very comfortable number to hit with this mix.” On data centres, he said, “I would say we are looking at it cautiously optimistic on data center.”

How did Pitti Engineering shares react?

The filing appeared after market. From the price when the filing appeared, the stock was down 3.3% after five minutes, down 0.1% after 15 minutes and down 0.9% after 30 minutes. It closed the reaction session down 2.7% from the previous close.

By the next day’s close, the stock was down 9.5% from its pre-results close, and by the fifth session it was down 9.1%. The Industrial Products median was down 2.4% on the reaction day, down 2.2% by the next day and down 2.2% by the fifth session.

Pitti Engineering underperformed the sector median by 0.3 percentage points on the reaction day, 7.3 percentage points by the next day and 6.9 percentage points by the fifth session. Earlier reaction-day moves included 0.5% on 10 August 2026, 0.7% on 14 May 2026, negative 3.5% on 7 November 2025 and 5.1% on 7 August 2025.

How did other Industrial Products companies do?

Thirty-eight other Industrial Products companies that had filed for the quarter were compared with Pitti Engineering. Their median revenue growth was 31.6%, compared with Pitti Engineering’s 46.0% revenue growth.

Of the peers, 23 grew more slowly than Pitti Engineering and 15 grew faster. Twenty-four of the 32 peers with comparable profit data reported higher profit.