Patil Automation: Powering India's Automation Upswing with Robust H1 FY26 Performance

Patil Automation Limited, a Pune-based engineering firm specializing in turnkey automation systems, has reported a strong financial performance for the first half of fiscal year 2026 (H1 FY26). The company's total income surged by 21.6% year-on-year, reaching INR 73.55 crore. This growth was underpinned by a significant 24.29% increase in EBITDA to INR 12.96 crore, with EBITDA margins expanding to 17.62%. Net profit also saw a healthy rise of 22.97%, totaling INR 7.53 crore, reflecting improved operational efficiency and strategic project selection.

The company's success in H1 FY26 is largely attributed to robust demand across its key customer segments and efficient project execution. Patil Automation is strategically diversifying its revenue streams, with the non-automotive sector now contributing a substantial 48.57% to the total income, nearly matching the automotive sector's 51.43%. This shift is a deliberate move to reduce dependency on a single sector and capitalize on emerging opportunities in high-growth areas such as defense, railways, renewables, infrastructure, and data centers. The management emphasized selecting projects that offer faster delivery times and better profit margins, a strategy that has visibly contributed to margin expansion.

Strategic Expansion and Diversification Fueling Future Growth

Patil Automation is not just riding the wave of industrial automation; it is actively shaping its future through strategic investments and expansions. A significant development is the establishment of a new ~1,09,450 sq. ft. manufacturing facility at Sadumbre, Maval, with a planned investment of approximately ₹55 crore. This expansion is set to double the company's throughput, increasing its annual installed capacity from 2,304 units to 3,454 units. The new facility, expected to commence operations within days, is projected to add over INR 150 crore to the company's revenue capacity, enabling it to undertake larger turnkey projects and reduce lead times.

Further strengthening its capabilities, Patil Automation has acquired 60% stakes in Mii Robotics Pvt. Ltd. and Pentaco Automation Pvt. Ltd. These acquisitions bring specialized expertise in robotics, defense automation, machine vision systems, servo presses, and industrial assembly solutions, enhancing PAL's offerings in smart factory and Industry 4.0-enabled systems. Both acquired entities have already started contributing to the company's performance.

Market Opportunities and Management Outlook

The Indian automation industry is experiencing a boom, projected to grow at a CAGR of over 12% from 2025 to 2033. This growth is driven by rising labor costs, a shortage of skilled workers, and government initiatives like 'Make in India' and PLI schemes. Patil Automation is well-positioned to capitalize on this trend, with its diversified solutions catering to various sectors. The company's robust order book, currently exceeding INR 140 crore, provides strong revenue visibility for the coming quarters.

Management has provided optimistic guidance for the upcoming periods. For the full fiscal year 2026, they anticipate total revenue to be in the range of INR 150-170 crore. Looking ahead to FY27, the revenue target is set between INR 250-260 crore, with a projected 60:40 split between automotive and non-automotive sectors, respectively. The management also expects EBITDA margins to improve further in FY27, driven by a continued focus on high-margin, fast-delivery projects.

Commitment to Quality and Innovation

Patil Automation maintains a strong commitment to quality and innovation, operating with a 'zero-defect mindset'. The company utilizes in-house CMM and weld inspection labs, equipped with Romer and Faro arms for 3D measurement, ensuring precision and accuracy. Its operations are built on ISO-certified systems, supporting repeatability and long-term serviceability. This focus on global quality frameworks enables consistent delivery and quick customization for diverse industry needs, fostering strong client trust.

In conclusion, Patil Automation Limited's H1 FY26 performance reflects a company in a strong growth trajectory, strategically expanding its capabilities and diversifying its market presence. With significant investments in capacity, technology, and talent, coupled with a robust order book and a clear vision for the future, Patil Automation is poised to be a key player in India's evolving industrial automation landscape.