💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, 'Castings & Forgings', which generated revenue of INR 48.13 Crores in FY25, representing a growth of 27.63% YoY. For the half-year ended September 30, 2025, revenue reached INR 35.47 Crores, a 45.8% increase compared to INR 24.32 Crores in the same period the previous year.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered and operates out of Vadodara, Gujarat.

Profitability Margins

Net Profit Margin was 2.53% in FY25 (INR 1.22 Crores profit on INR 48.13 Crores revenue). For H1 FY26, the Net Profit Margin slightly decreased to 2.48% (INR 0.88 Crores profit on INR 35.47 Crores revenue).

EBITDA Margin

EBITDA margin for FY25 was approximately 7.79%, calculated from a PBT of INR 1.74 Crores plus Finance Costs of INR 1.68 Crores and Depreciation of INR 0.32 Crores against INR 48.13 Crores in revenue.

Capital Expenditure

The company invested INR 1.10 Crores in fixed assets during H1 FY26. It raised INR 17.50 Crores through a preferential issue in August 2025, with a significant portion earmarked for the installation of new machinery and capacity expansion.

Credit Rating & Borrowing

Finance costs stood at INR 1.68 Crores for FY25, representing 3.5% of total revenue. Long-term borrowings were reduced by INR 0.45 Crores during the half-year ended September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Steel-based components including plates, pipes, valves, fittings, and flanges. Raw material consumption (INR 32.23 Crores) accounted for 90.8% of total revenue in H1 FY26.

Capacity Expansion

The company is actively increasing capacity utilization and expanding its manufacturing footprint using INR 17.50 Crores raised via equity and warrants to install latest machinery for forged and machined components.

Raw Material Costs

Raw material costs were INR 45.77 Crores in FY25, consuming 95% of revenue. In H1 FY26, material costs were INR 32.23 Crores, or 90.8% of revenue, reflecting high sensitivity to metal prices.

Manufacturing Efficiency

Management is focused on increasing the utilization of existing manufacturing capacity to enhance profit margins.

Logistics & Distribution

Other expenses, which include distribution and administrative costs, were INR 0.77 Crores in FY25, or 1.6% of revenue.

📈 Strategic Growth

Expected Growth Rate

27.63%

Growth Strategy

Growth will be driven by a INR 17.50 Crores capital infusion for capacity expansion, upscaling existing products, and potential strategic partnerships. The company is aligning its strategy with India's infrastructure goals to secure large project orders for customized tube components.

Products & Services

Forged and machined components, pipe fittings, tube fittings, flanges, and valves used in industrial piping systems.

Brand Portfolio

Pattech Fitwell.

New Products/Services

The company is focusing on the upscaling and upgradation of its existing forged and machined product line through new machinery installations.

Market Expansion

Targeting increased market penetration by leveraging its ability to deliver both standardized and customized project orders.

Strategic Alliances

Proceeds from the 2025 preferential issue are specifically allocated for potential strategic partnerships or alliances with similar businesses.

🌍 External Factors

Industry Trends

The pipe fittings industry is seeing a shift toward sustainable manufacturing and 'Zero Harm' environmental standards, alongside increased demand for customized forged components.

Competitive Landscape

Operates in the competitive SME sector for castings and forgings, competing on customization and delivery efficiency.

Competitive Moat

The company's moat is built on its robust facilities capable of manufacturing both standardized and customized products, allowing it to efficiently handle large-scale project orders.

Macro Economic Sensitivity

Highly sensitive to industrial infrastructure spending and the Government of India's 'Vision 2047' for national development.

Consumer Behavior

Demand is primarily driven by B2B industrial project cycles rather than individual consumer trends.

Geopolitical Risks

Potential trade barriers or global supply chain disruptions affecting the sourcing of steel components.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and the Companies Act 2013 for financial reporting and manufacturing standards.

Environmental Compliance

The company maintains a 'Zero Harm' commitment toward the environment and communities as part of its sustainable growth approach.

Taxation Policy Impact

The effective tax rate for FY25 was 29.6%, with a total tax expense of INR 0.51 Crores on a PBT of INR 1.74 Crores.

Legal Contingencies

The company reported zero pending investor complaints as of September 30, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the extreme concentration of raw material costs (over 90% of revenue), where a minor spike in steel prices could lead to operational losses.

Geographic Concentration Risk

Manufacturing operations are concentrated in a single location in Vadodara, Gujarat.

Third Party Dependencies

Dependency on Bigshare Services Private Limited for registrar and share transfer agent services.

Technology Obsolescence Risk

The company is mitigating technology risks by investing in 'new and latest machinery' through its recent capital raise.

Credit & Counterparty Risk

Trade receivables were INR 12.84 Crores as of September 2025, representing approximately 36% of the half-year revenue, indicating significant credit exposure.