Pritika Auto Industries FY26: Revenue surge, Q4 margin hit, and a clear capacity roadmap

Pritika Auto Industries ended FY26 with its strongest revenue performance since listing, helped by higher volumes and steady demand from key tractor and automotive OEMs. On a consolidated basis, revenue from operations rose 35.32% year-on-year to INR482.95 crore. EBITDA increased 24.30% to INR71.03 crore, while profit after tax stood at INR23.20 crore.

The year was also notable operationally. The company reported production volumes of 52,620 tons in FY26, a 30.62% year-on-year increase, supported by better utilisation across its plants and a gradual move toward higher-weight castings.

Q4 FY26, however, showed the pressure points of the model. Consolidated revenue grew 36.20% year-on-year to INR138.46 crore, but EBITDA margin compressed as input costs rose sharply late in the quarter. Management attributed this to a sudden increase in raw materials and disruptions in gas and other inputs during March, noting that pass-through pricing typically happens with a lag, often about one quarter.

FY26 and Q4 snapshot: growth first, margins second

FY26 consolidated revenue growth was broad-based, with management citing healthy demand from key OEM customers and improved production volumes. For the quarter ended March 31, 2026, consolidated EBITDA was INR16.64 crore and PAT was INR4.77 crore. The company highlighted that while growth remained strong, margins were impacted by elevated input costs and product mix.

Management’s commentary on margins was straightforward. It said raw material prices rose meaningfully and March saw a spike linked to gas and other input disruptions. The company also reiterated that raw materials are generally pass-through, but the timing gap can temporarily compress margins.

Operating model: capacity, utilisation, and product mix

Pritika positions itself as an integrated manufacturer of machined castings, supplying ready-to-use components to OEMs. Management stated that it supplies 100% machined castings, not raw castings. Its key products include axle housings, wheel housings, hydraulic lift housings, differential carriers, engine covers, cylinder blocks, and crank cases.

The group reported an installed capacity of 72,000 metric tons per annum across facilities, and management indicated current utilisation is roughly 73% to 74%, with the ability to go up to 80% to 85%. The strategic focus remains on moving up the value chain toward larger castings. Management described the market as segmented into small, medium, and large castings, and said value addition and profitability improve as the company shifts toward higher-weight parts, where competition is lower.

Another layer of mix improvement is technology. The group has invested in Lost Foam Casting (LFC) through Meeta Castings. Management said LFC currently contributes roughly 10% to 15% and targets rising to about 30% over the next three years. It also noted that LFC margins can be 1% to 2% higher than conventional casting, and highlighted that for certain large-casting categories, LFC can be significantly more capex-efficient on a per-ton basis.

FY27 and beyond: expansion, railways, exports, and the U.S. foothold

Management provided explicit directional guidance for FY27. It said tractor OEMs are expecting low single-digit growth of about 6% to 8% due to a high base in the second half, but the company expects to grow around 15%, supported by new products and projects.

Capacity expansion is a central part of that plan. Management said it intends to add approximately 7,800 tons in FY27, targeted in the first half, alongside machining capacity additions. Capex guidance for FY27 was indicated at roughly INR25 crore to INR30 crore, with management also stating that the 7,800-ton addition would require around INR35 crore. For FY28, it discussed a larger LFC-led project that would help the group cross 1,00,000 tons of installed capacity, with funding potentially via a combination of debt and equity.

Diversification efforts were also discussed in the earnings call.

Railways is one such vertical. Management said product development and qualification work continues and revenue is not yet material, but it expects initial contributions to begin in FY27. The company views railways as a medium- and long-term lever to diversify beyond the automotive OEM customer universe.

Exports are another focus area. Management said it has started exporting to South Korea, with one lot already sent and another consignment planned, and that it is exploring Europe as well.

The most visible international corporate step in FY26 was through the subsidiary route. The company disclosed that Pritika Engineering Components Limited completed the first tranche of an investment in Omnia Engineering Inc., a Delaware entity, acquiring 100% stake for USD50,000. It stated this is part of a plan to invest up to USD100,000. Management said the U.S. entity is intended to enable direct engagement with potential U.S. customers, which it believes can offer better margins than dealing through India offices. The initial plan is to manufacture in India and ship to the U.S., while evaluating the possibility of manufacturing or finishing operations in the U.S. over time.

Key takeaways

FY26 showed strong execution on growth and volumes, with consolidated revenue up 35.32% and production reaching 52,620 tons. The trade-off was margin compression, especially in Q4, driven by sharp input cost increases and lagging pass-through.

The near-term investment story is anchored in capacity and utilisation: a planned 7,800-ton expansion in FY27, a roadmap to cross 1,00,000 tons via LFC capacity in FY28, and management’s stated goal to improve utilisation toward 80% to 85%. Alongside, railways qualification, export expansion, and the early-stage U.S. foothold via Omnia provide additional optionality.

The next few quarters will likely be watched for two things. First, whether the raw material pass-through and higher utilisation help margins revert toward the levels management referenced. Second, whether the capacity additions and mix shift to large castings and LFC translate into sustained improvement in realisations and profitability.