Pitti Engineering Q1 FY26 revenue rises 17% to Rs 457cr as Rs 150cr capacity expansion gains momentum

Pitti Engineering Limited (NSE: PITTIENG, BSE: 513519), one of India’s largest producers of electrical steel laminations, motor cores, sub-assemblies, die-cast rotors, and machined components, has reported a strong start to FY26 with a 17% year-on-year rise in revenue to ₹457 crore. The company also unveiled a ₹150-crore capital expenditure programme aimed at boosting manufacturing capacity across its operations and subsidiaries over the next 18 months.

How did Pitti Engineering’s financial performance in Q1 FY26 compare to last year’s first quarter?

For the three months ended 30 June 2025, consolidated revenue reached ₹457 crore, up from ₹390 crore in Q1 FY25. Earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹75 crore, reflecting 30% growth from ₹57 crore in the same period last year. Profit after tax rose 17% year-on-year to ₹23 crore.

Management attributed the improved profitability to the company’s integrated manufacturing model, increased share of value-added products, and consistent cash flows from both domestic and export operations. Export sales contributed 31% of total revenue during the quarter, supported by long-standing supply relationships with marquee clients across global markets.

What operational achievements supported Pitti Engineering’s growth in volumes and efficiency?

The company reported capacity utilisation levels of 82% for machined hours, 70% for sheet metals, and 69% for castings. Sales volumes in raw castings surged 145.2% year-on-year, stator-frame core drop volumes rose 63.4%, and machined components climbed 36%.

During the quarter, Pitti Engineering also secured technical approvals and supplied sample products for a revarnishing line that will soon move into commercial production. Another significant milestone was winning a second alternator platform for data-centre applications from an existing customer. At full potential, this project is expected to generate over ₹20 crore in annual revenue.

How will the ₹150-crore capex programme reshape Pitti Engineering’s manufacturing footprint?

The board has approved a ₹150-crore investment to expand manufacturing capacity for the parent company and its wholly owned subsidiaries—Pitti Industries Private Limited and Dakshin Foundry Private Limited.

Once completed, sheet-metal production capacity will increase from 90,000 metric tonnes (MT) per annum to 1,08,000 MT, machine hours will expand from 6,48,000 to 7,20,000 hours annually, and casting capacity will grow from 18,600 MT to 24,600 MT. The expansion will be funded through a combination of internal accruals and debt and is expected to be completed in a phased manner over 18 months.

How does this performance compare with Pitti Engineering’s historical trajectory and market positioning?

Founded in 1983, Pitti Engineering has evolved from a laminations-led manufacturer into a full-service solutions provider, producing motor cores, sub-assemblies, die-cast rotors, fabricated components, and press tools. Its ability to integrate upstream processes such as machining and casting with downstream assembly gives it a competitive edge in both cost control and delivery reliability.

In FY25, the company maintained steady growth momentum despite raw-material price fluctuations and a volatile export environment. Its diversified portfolio serves multiple end-user industries, including industrial motors, energy infrastructure, railways, and electric vehicles, mitigating the impact of sector-specific demand swings.

What broader industry trends are shaping demand for electrical steel laminations and machined components in India?

The Indian electrical steel market is benefiting from industrial expansion, grid modernisation, renewable-energy integration, and the growth of electric mobility. Market research estimates vary, but most forecasts point to an annual growth rate of 8–10% through the early 2030s, driven by both domestic consumption and exports.

Globally, electrical steel laminations are in higher demand due to efficiency regulations for electric motors and transformers, as well as the rise of data-centre infrastructure—an area where Pitti Engineering has already established supply credentials. The company’s expansion into alternator platforms for data-centre applications reflects this evolving demand profile.

What is the institutional sentiment towards Pitti Engineering’s growth strategy?

Institutional investors view the company’s integrated manufacturing capabilities, product diversification, and export penetration as key strengths. The ₹150-crore capacity expansion is being interpreted as a vote of confidence in sustained demand, with the phased approach seen as a way to balance growth with financial discipline.

Analysts also highlight that the integration of recent acquisitions—Bagadia Chaitra Industries and Dakshin Foundry—appears to be progressing smoothly, creating synergies in capacity, technology, and client access.

What risks could influence Pitti Engineering’s near-term performance?

While the demand outlook remains favourable, potential risks include volatility in raw-material costs, currency fluctuations impacting export margins, and execution delays in capacity expansion projects. A slowdown in industrial capital expenditure cycles or weaker-than-expected export demand could also affect revenue momentum.

To mitigate these factors, Pitti Engineering continues to prioritise backward integration, operational efficiency, and a balanced mix of domestic and export sales.

What is the management’s outlook for the rest of FY26?

Managing Director and Chief Executive Officer Akshay S. Pitti said that the strong first-quarter performance reinforces confidence in the company’s strategic direction. He emphasised that end-user industry demand remains robust, supported by healthy order bookings and enquiries.

Pitti stated that with capacity ramp-ups underway and integration of recent acquisitions on track, the company is well-placed to sustain growth through the remainder of FY26. He also pointed to ongoing opportunities in both domestic and international markets for laminations, machined components, and higher-value assemblies tailored to customer requirements.

How could the capacity expansion influence Pitti Engineering’s long-term competitive position?

Upon completion, the expanded capacity is expected to provide Pitti Engineering with significantly greater operational flexibility to cater to high-volume, multi-year contracts, particularly in industries with stringent delivery timelines. By scaling sheet-metal, casting, and machining capabilities in tandem, the company can optimise production scheduling, reduce bottlenecks, and shorten lead times for both domestic and export clients. This expansion is also designed to increase the proportion of value-added products—such as fully machined assemblies and customised motor cores—in the overall sales mix, which typically command higher margins and foster deeper customer relationships.

In export markets, where reliability, production scale, and cost competitiveness often determine vendor selection, these enhancements could prove decisive. Large overseas buyers in sectors like data-centre power systems, wind and solar generation equipment, industrial automation, and electric mobility increasingly seek suppliers that can meet both rapid ramp-up requirements and stringent quality standards. By aligning its capacity expansion with these sectoral growth areas, Pitti Engineering is positioning itself to win long-term contracts from global OEMs and Tier-1 suppliers who are actively diversifying their supply chains beyond China and Southeast Asia.

Industry participants note that this proactive scaling, coupled with the company’s track record in on-time delivery and integrated manufacturing, could not only consolidate its leadership in the Indian market but also enhance its credibility in advanced international markets such as North America and Europe. Over time, this could translate into a higher share of export revenues, more multi-product engagements with existing clients, and a stronger competitive moat against both domestic peers and multinational rivals.