Patil Automation Limited’s ₹95.95 crore issue supports FY28 plan

Patil Automation Limited allotted a Rs 95.95 crore preferential issue on 23 October 2026, supporting management’s FY28 income guidance of Rs 380-385 crore after FY26 consolidated income of Rs 172.79 crore. The company received Rs 62.30 crore at allotment, while the balance linked to warrants is payable if converted within 18 months.

How was Patil Automation’s preferential issue structured?

Patil Automation allotted Rs 51.08 crore of equity shares and Rs 44.87 crore of convertible warrants at Rs 246 each on 23 October 2026. The issue comprised 20,76,600 equity shares and 18,24,000 warrants, taking the stated aggregate preferential-issue size to Rs 95.95 crore.

Patil Automation received Rs 62.30 crore when the securities were allotted. Holders of the warrants must pay the remaining 75% of the warrant price upon conversion, which must occur within 18 months of allotment. The presentation therefore distinguishes between cash received initially and the Rs 44.87 crore stated value of warrants that remain conditional on conversion and payment.

The named allottees include Motilal Oswal Financial Services Limited, Calliope Capital Advisors LLP, Subhkam Ventures Private Limited and the Managing Director. Patil Automation says paid-up equity capital rises to Rs 239 crore, and its shareholding disclosure includes the 20,76,600 equity shares allotted through the preferential issue.

Where will Patil Automation use the new funding?

Patil Automation’s stated priority is to finish the current build-out, fill capacity already paid for and add incremental capacity only when demand requires it. Management says the final step could involve leased space, rather than an immediate commitment to another large facility.

Fixed assets rose to Rs 54.65 crore in FY26 from Rs 13.34 crore in FY25, reflecting investment in new Chakan capacity, the Faridabad facility and the Design Hub. FY26 investing cash outflow was Rs 64.19 crore and also covered two acquisitions, while financing cash inflow was Rs 60.60 crore, principally reflecting the June 2025 National Stock Exchange Emerge listing.

Patil Automation had Rs 9.16 crore of unutilised listing proceeds at September 2026. Its board approved reallocating that amount from plant capital expenditure to working capital by December 2026, linking remaining listing funds to order execution rather than additional plant spending.

The company says capacity is expected to double after the preferential issue, although it notes that capacity is project-based and changes with project scope. Its risk discussion says legacy plants are near full utilisation, while newer capacity was at about 50% utilisation and was being filled.

What are Patil Automation’s FY27 and FY28 income targets?

Patil Automation has guided for FY27 income of Rs 260-270 crore and FY28 income of Rs 380-385 crore, compared with audited FY26 consolidated income of Rs 172.79 crore. Management says the FY27 range can be executed within the existing facility, supported by an order book of more than Rs 130 crore and the first full year of PAL Green Energy.

Management says the preferential-issue proceeds are intended to fund expansion beyond Rs 300 crore and up to Rs 600 crore of capacity for FY28. The presentation describes the first two stages of its roadmap as underwritten by capacity that has already been built and paid for, rather than by facilities yet to be commissioned.

The FY28 range is guidance, not a reported result. Patil Automation separately says capacity beyond FY28 would need additional facilities that have not been committed, making the Rs 700 crore-plus 2030 group aspiration dependent on further development beyond the current funding plan.

What execution factors could affect Patil Automation’s targets?

Patil Automation’s plan depends on converting its Rs 130 crore-plus order book and more than Rs 800 crore of live proposals into production. The company describes turnkey-project revenue as lumpy because orders are large and discrete, meaning revenue and margins can vary significantly between halves.

Working capital rose with the build-out. Inventory increased to Rs 47.79 crore in FY26 from Rs 17.94 crore in FY25, while inventory days rose to 221 from 105 days. Operating cash flow was negative Rs 4.38 crore in FY26, which management attributes to work in progress for orders scheduled for execution in the first quarter of FY27.

Receivable days fell to 107 in FY26 from 154 in FY25 as revenue grew, and management expects receivables to remain at roughly 110 days as revenue scales. Patil Automation says customer advances partly fund projects, although the higher inventory balance remains a disclosed execution consideration.

Automotive accounted for 67% of FY26 revenue, while non-automotive increased to 33% from 10.95% in FY25. The presentation identifies defence, data-centre battery energy storage systems, construction and renewables as live non-automotive verticals, while acknowledging exposure to the automotive capital-expenditure cycle.

Conclusion

Patil Automation’s Rs 95.95 crore issue combines Rs 51.08 crore of equity shares with Rs 44.87 crore of convertible warrants, of which Rs 62.30 crore was received at allotment. Management connects the funding to completing the build-out, raising utilisation and supporting FY27 guidance of Rs 260-270 crore and FY28 guidance of Rs 380-385 crore.

The next disclosed items to watch are the reallocation of Rs 9.16 crore of unused listing proceeds to working capital by December 2026, warrant conversion within 18 months of 23 October 2026, and progress against FY27 guidance. Management’s longer-term Rs 700 crore-plus aspiration also depends on facilities beyond FY28 that have not yet been committed.