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Pritika Auto Industries Limited — Q4 FY26 earnings call

Call held 27 May 2026

Management summary

Pritika Auto Industries delivered strong financial results for Q4 and FY26, marked by significant revenue and volume growth, including a record annual production. The company embarked on international expansion with an investment in a US entity and continued its strategic shift towards high-value product segments. However, Q4 margins faced pressure from rising raw material and energy costs, which management expects to recover in the coming quarters through pass-through mechanisms and improved capacity utilization.

Highlights

  • Q4 FY26 consolidated revenue of ₹138.46 crores, reflecting a 36.20% YoY growth.

  • FY26 consolidated revenue reached ₹482.95 crores, a 35.32% YoY increase from FY25.

  • Achieved highest-ever annual production volume of 52,620 metric tons in FY26.

  • Initiated strategic expansion into the US market with an investment in Omnia Engineering Inc.

  • Improved product mix towards high-value large castings, leading to better realization and margin profiles.

Concerns

  • Q4 FY26 EBITDA margin compressed to 12.02% from the previous 16-17% range.

  • Increased raw material and gas prices in March 2026 impacted Q4 profitability.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹138.46 Cr
    YoY +36.2%
  • EBITDA
    ₹16.64 Cr
  • EBITDA Margin
    12%
  • PAT
    ₹4.77 Cr
  • EPS
    ₹0.26

FY26

  • Revenue
    ₹482.95 Cr
    YoY +35.3%
  • EBITDA
    ₹71.03 Cr
  • EBITDA Margin
    14.7%
  • PAT
    ₹23.2 Cr

What they filed

Q1 FY27: revenue up 26.5%, net profit up 16.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue86 81 102 115 116 +36%113 +41%138 +36%145 +26%
EBITDA15 13 14 17 19 +24%18 +37%17 +16%20 +12%
Net profit11 4 4 6 7 −38%6 +30%5 +8%7 +17%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

medium confidence

Total value

₹500 Cr

as of 2026-03-31 range

The company is fully booked and overbooked, with current order book estimated to be over INR500-600 crores.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹25 Cr FY27: debt-only; FY28: combination of debt and equity
    • Capacity expansion (7,800 tons Green Sand) ₹35 Cr
    • New product development
    • Railways product development
    This year capex will be roughly around INR25 to INR30 crores INR25 crores roughly, not more than that. Because major capex-- So, for 7,800 ton we require how much? INR60 crores to INR70 crores in total? No, 7,800 tons, we require roughly INR35 crores. ... This year it will be by debt-only, and next year will be by debt and equity.
  • Debt Net ₹180 Cr · 0.7× EBITDA
    Okay. Because, sir, the debt has increased quite meaningfully this year around INR190 plus crores. This year it is INR180 crores, yes. ... Right now, I guess, the net debt-to-equity somewhere around 0.65 or something.
  • M&A Omnia Engineering Inc. Acquisition · Closed · Consideration ₹[object Object] (cash)

    Establish a foothold in the U.S. market and explore engineering sector opportunities over time.

    Initial tranche of a Board-approved plan to invest up to $100,000. Newly incorporated company yet to commence operations.

    In April 2026, our subsidiary Pritika Engineering Components Limited completed the first tranche of an investment in Omnia Engineering Inc., a Delaware corporate entity, acquiring 100% stake for $50,000. This represents the initial tranche of a Board-approved plan to invest up to $100,000 in Omnia, which is a newly incorporated company yet to commence operations.

Guidance & targets

Revenue

  • Medium-term Revenue Target Revenue · next two years (FY27/FY28) · High confidence ₹600 crores
    As we enter financial year 2027, the medium-term revenue target of INR600 crores remains our reference point. We believe it is achievable through a combination of volume growth from existing OEM customers, scaling high-value products, and railways beginning to contribute meaningfully. ... Yes, we next two years we plan to grow at around 15%. So, I think so with 15% growth in next two years we should touch INR600 crores. Yes.

    — Harpreet Singh Nibber

  • Railway Segment Contribution Revenue · next two, three years · Medium confidence Good revenue and bottom line
    And second would be railways, which again we are very aggressively working on two, three products, and we hope that another two, three years that will also give us a good revenue, and bottom line.

    — Harpreet Singh Nibber

Volume

  • Annual Volume Growth Volume · this year (FY27) · High confidence 15%
    but for ourselves, considering whatever new products, new projects we are having in hand, we expect to grow by around 15% this year.

    — Harpreet Singh Nibber

Capacity Utilization

  • Maximum Capacity Utilization Capacity Utilization · this year (FY27) · High confidence 80-85%
    maximum we can go up to 80% to 85%. We can go up to maximum 80% to 85% we can go in this. ... Yes, hopefully. Yes, if market remains good, whatever the indications are as on date, we should achieve 80% to 85% this year.

    — Harpreet Singh Nibber

Capacity

  • Green Sand Capacity Addition Capacity · H1 FY27 · High confidence 7,800 tons
    this year we plan to add another approximately 7,800, which we will add in H1. That is what we are planning, 7,800 metric tons in foundry.

    — Harpreet Singh Nibber

  • LFC Technology Capacity Addition Capacity · FY28 · High confidence 20,000-24,000 tons
    And then maybe next year, financial year 2028, we will add another 20,000-24,000 tons in LFC technology so that our capacity, our overall, we will cross 1 lakh tons.

    — Harpreet Singh Nibber

Margin

  • EBITDA Margin Margin · coming quarters · Medium confidence 15-16%

    From 12.02% (Q4 FY26) today

    Yes, yes. We should go back if the war doesn't create much more disruption, then we should go back. We should go back. ... Yes, yes, yes. Coming this year, and if there is no further disruptions due to war, we should reach back to our original margins.

    — Harpreet Singh Nibber

  • LFC EBITDA Margin Margin · long-term · High confidence 18-20%

    From 14-15% (India ops) today

    So, we expect that, minimum EBITDA margins of 18% to 20%.

    — Harpreet Singh Nibber

Capacity Mix

  • Conventional vs LFC Capacity Share Capacity Mix · after next year (FY28) · High confidence 70/30
    After next year it will be around, say, 70/30.

    — Harpreet Singh Nibber

Exports

  • Export Focus Exports · next two, three years · Medium confidence Increased focus
    And our focus would be for next two, three years would be exports. I know it's a long-drawn process, four to five years, so we will be focusing on export, so that our margins can improve.

    — Harpreet Singh Nibber

What to watch in Q1 FY27

EBITDA Margin Recovery

next quarter
Current 12.02% (Q4 FY26)
Target 15-16%

Why it matters

Verifying the company's ability to pass on cost increases and restore profitability to historical levels is crucial for investor confidence.

It should revert back and we should rather improve on that because capacity utilization as the capacity utilization improves, the margins will also improve.

Risks & concerns

  • Raw Material and Energy Price Volatility

    medium

    Increased raw material prices (due to war) and gas/diesel costs impacted Q4 margins, though management expects pass-through with a lag.

    Management acknowledged

Q&A highlights

7 direct
Q4 EBITDA Margin Decline Direct
This is because basically raw material prices have increased tremendously. And in the month of March, because of gas and other things issues, it just took off.

Explains the reason for the significant margin compression in the reported quarter, attributing it to external cost pressures.

Asked by Udit Sehgal

US Entity Acquisition Strategy Direct
See. The thought process in this is that what happens is now all the major OEs, they have their offices in India operations, they have Indian offices are there. So, I mean, when we contacted them, they said that if you want to deal with USA directly, then you need to have a USA entity. So for that reason, because the margins over there are much better than what the Indian offices are giving.

Clarifies the strategic rationale behind the US market entry, emphasizing direct customer engagement and potential for higher margins.

Asked by Udit Sehgal

FY27 Demand Outlook from OEMs Partial
See, as far as outlook is concerned, our customer is expecting a low single-digit growth around 6% to 8% for this year because H2 will have a very high base. So, but for ourselves, considering whatever new products, new projects we are having in hand, we expect to grow by around 15% this year.

Provides insight into the broader market demand for tractors while highlighting Pritika Auto's confidence in outperforming the market due to its specific product pipeline.

Asked by Juzer Haveliwala

Hoshiarpur Land Acquisition Status Direct
No, the status for land was that we acquired the land under this from a ARC under in auction by Honorable High Court, but then we found there was a then there was some litigation on this. So, then we withdrew ourselves from the auction. ... We have received the refund. Refund has been received.

Resolves a long-standing query regarding a land acquisition, confirming withdrawal due to litigation and receipt of refund, indicating no impact on immediate expansion plans.

Asked by Chaitrika Deshpande

Drivers of EBITDA and Realization Improvement Direct
As we move in this segment from small to medium to large, the value addition and the profitability keeps on improving. So, because -- and we have been consistently moving from small to medium, now we have started moving from medium to large. Large -- basically advantage with large is one more that number of players in India is very less for large castings.

Explains the company's strategy of shifting towards larger, higher-value castings to improve profitability due to less competition and higher value addition.

Asked by Akash Sharma

Market Share Gains Direct
Yes, yes, yes. We have gained market share with almost all our customers. See, market has grown by 16%-17%. We have grown by 34%.

Quantifies the company's market share outperformance, indicating strong competitive positioning and customer relationships.

Asked by Akash Sharma

LFC vs Conventional Casting Capex Efficiency Direct
But with LFC, we can produce same product with same quality with a with almost 50% investment and in a smaller blocks. So that is a 3,000, here we can start with 500 tons, 1,000 tons, 1,500 tons, that way we can create the capacities with that. So, it is much easier, with lesser capex you can start this technology.

Highlights the significant capital efficiency advantage of LFC technology, which allows for capacity creation with substantially lower investment, supporting future expansion plans.

Asked by Vishal

EV Transition in Commercial Vehicles and Off-Highway Equipment Direct
No, no. In heavy commercials there is some very slight movement, in buses there is there, but not in commercial vehicles and in heavy vehicles. In tractors, they have just started a development or maybe in a very small way, and for off-road vehicles like construction equipment, I have not seen any movement in that towards electrification.

Provides clarity on the pace of EV adoption in the company's core segments, indicating a longer transition horizon and minimal near-term disruption.

Asked by Yash Parkar

3 min read 7 chapters

Detailed narrative

Company Overview & Performance Highlights

Pritika Auto Industries reported a robust Q4 and FY26, with consolidated revenue reaching INR138.46 crores (up 36.20% YoY) and INR482.95 crores (up 35.32% YoY) respectively. The company achieved its highest-ever annual production volume of 52,620 metric tons in FY26, underscoring consistent capacity ramp-up and operational improvements. This strong performance was driven by healthy demand from key OEM customers and an improved product mix focusing on high-value castings.

Strategic Growth Drivers & Product Mix

The company's focus on low-cost mechanization and targeted automation has enabled an annual throughput expansion of approximately 10% without significant capital outlay. Pritika Auto is increasingly shifting towards high-weight, large castings like gearboxes and transmission cases, which offer better realization and margin profiles due to less competition in this niche market. This strategic shift is a key driver for product mix improvement and profitability, with the company gaining market share by growing 34% compared to the market's 16-17%.

International Expansion & US Market Entry

Pritika Auto made its first step into international markets by acquiring a 100% stake in Omnia Engineering Inc., a newly incorporated Delaware entity, for $50,000 as an initial tranche of a $100,000 plan. This move aims to establish a foothold in the US market, allowing direct engagement with US customers and exploring engineering sector opportunities. Management anticipates these operations to yield higher EBITDA margins of 18-20% compared to India's 14-15%.

Railway Diversification

Product development and qualification work for the railway segment are ongoing. While revenue from this segment is not yet material, initial contributions are expected to begin in financial year 2027. This diversification is a crucial long-term growth lever, aiming to broaden the customer base beyond traditional automotive OEMs and contribute meaningfully to revenue and bottom line within the next 2-3 years.

Operational Efficiency & Margin Management

Q4 FY26 saw a decline in EBITDA margin to 12.02% from the 16-17% range, primarily due to a sharp increase in raw material and gas prices in March 2026. Management expects these cost pressures to be largely pass-through to customers, with margins anticipated to revert to the 15-16% range in the coming quarters. This recovery is also supported by improving capacity utilization, targeted to reach 80-85% in FY27.

Capital Expenditure Plans

For FY27, Pritika Auto plans a capex of INR25-30 crores to add 7,800 tons of Green Sand capacity, funded entirely by debt. In FY28, a larger capex of INR60-70 crores is planned to add 20,000-24,000 tons of LFC technology, which will be funded by a combination of debt and equity. The LFC technology is highlighted for its capital efficiency, requiring almost 50% less investment for the same capacity compared to conventional methods, making it a strategic choice for future expansion.

EV Transition Outlook

The company acknowledges the ongoing development in EV components for tractors and commercial vehicles but does not foresee any near-term structural disruption to its core business. Management notes that the electrification horizon for their served segments (tractors and CVs) is materially longer than for passenger vehicles, with no major EV platforms expected in the next 2-5 years. There is only very slight movement in EV adoption within heavy commercials and off-road equipment.

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