Pitti Engineering Q2 FY27: Revenue Rises 16.3%

Pitti Engineering Ltd reported higher revenue and operating profit for the second quarter of FY27, supported by growth in laminations, assemblies and demand from several engineering end-markets. Total income rose 16.3% year-on-year to INR 581 crore, while adjusted EBITDA increased to INR 91 crore. However, adjusted PAT declined to INR 36 crore as foreign exchange losses and higher operating costs affected margins. The results show continued volume momentum alongside pressure on profitability and working capital.

Q2 revenue growth remains broad-based

Q2 FY27 total income increased from INR 499 crore in the year-earlier quarter to INR 581 crore. For the first half, revenue rose about 15% to INR 1,110 crore from INR 963 crore in H1 FY26. The comparative figures were restated following the September 2026 merger of Pitti Industries and Dakshin Foundry into Pitti Engineering. Management linked the growth to resilient demand despite inflation, supply-chain constraints, Middle East tensions and higher raw-material prices.

Lamination volumes support operating momentum

Lamination and assembly volumes reached 21,600 tonnes in Q2 FY27, a 26% year-on-year increase. H1 lamination volumes were about 41,000 tonnes, up 22% from the corresponding period of FY26. Management cited demand across railways, metros, mining, off-highway applications and specialised industrial uses. These volume gains supported the increase in absolute EBITDA despite a lower margin.

Casting and machining performance was mixed

Raw casting and machine component volumes were 13,086 tonnes in Q2, up 6% year-on-year. Management also highlighted a sequential decline in casting volumes, indicating an area that needs operational improvement. The supplied H1 volume figure was 6,054 tonnes, representing growth of 1.6%. The contrast between strong lamination volumes and slower casting growth remains relevant to the company’s near-term execution profile.

Margin declines despite higher EBITDA

Adjusted EBITDA grew 13% year-on-year from INR 80 crore to INR 91 crore in Q2 FY27. Adjusted EBITDA margin stood at 15.8%, with management attributing the decline to forex losses, consumable and packing costs, fuel and power expenses, and higher raw-material prices. The company recorded a quarterly foreign exchange loss of INR 4.61 crore. Management said steel inflation is passed through quarterly, while consumable and packing adjustments are annual, and fuel and power costs are expected to be passed through from January.

Profit falls amid costs and incentive timing

Adjusted PAT fell to INR 36 crore from INR 43 crore in Q2 FY26. The prior-year quarter included INR 21 crore of other income related to Maharashtra incentives, which affected comparability. Pitti deferred its current-year incentive claim to the next fiscal year, temporarily reducing the reported bottom-line performance. The combination of this timing effect and higher costs meant profit did not keep pace with revenue growth.

Data centres emerge as a growth lever

Data centres contributed 7% of Q2 FY27 revenue and were identified by management as a near-term growth opportunity. AI-led and conventional data-centre development is raising demand for dependable primary and backup power systems. Pitti cited customers including Cummins, Marathon and Nidec, while stating that further marquee opportunities are under development. The company’s other reported revenue segments included traction and railway components at 27%, power generation at 16%, industrial and commercial applications at 12%, mining, oil and gas at 10%, and special purpose motors at 8%.

Capacity additions extend through FY31

The company is commissioning its Hyderabad casting and machining facility in phases through FY30. It has also announced an INR 450 crore Bangalore greenfield project to consolidate lamination operations and expand sheet-metal capacity to 160,000 tonnes per annum by FY31. Of this investment, INR 125 crore is earmarked for land and INR 325 crore for infrastructure, plant and equipment. Machining capacity is targeted to increase to 1.31 million hours.

FY31 potential depends on phased execution

Pitti has outlined total phased capital expenditure of INR 740 crore through FY31, including the announced Bangalore project and planned expansion. At full utilisation by FY31, management sees revenue potential of about INR 3,800 crore, including roughly INR 850 crore from basic machine components. Management expects stronger volume growth from FY28 as modular capacity additions begin from Q2 FY28. This makes the timing of commissioning, customer demand and utilisation important factors in converting planned capacity into revenue.

Guidance retained as investors assess costs

Management reiterated its full-year guidance, including INR 370 crore of targeted earnings and an upgraded volume outlook. Lamination and assembly volumes are expected to be about 82,000 tonnes plus 1,000 tonnes. The stock was reported to have fallen 5.25% following the update, with the cited price at INR 899.4. Investors are likely to track the planned cost pass-through, casting-volume recovery, incentive claim timing and the progress of expansion projects in subsequent disclosures.

Outlook remains tied to demand and margin recovery

Pitti Engineering enters the second half of FY27 with sustained demand across transportation, power, industrial and data-centre applications. Its Q2 results demonstrate that higher volumes can support revenue and absolute EBITDA growth even during a period of cost inflation. But the fall in adjusted PAT and margin pressure show that pricing actions and execution remain material. The company’s next updates will provide clarity on whether cost pass-through arrangements, phased capacity additions and stronger FY28 volume expectations translate into improved profitability.