💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from the Power Transmission Solutions segment for H1 FY26 was INR 260.32 Cr, representing a decline of 10.34% compared to INR 290.35 Cr in H1 FY25. Standalone revenue for the same period was INR 236.45 Cr, down 12.81% YoY.

Geographic Revenue Split

India operations (Standalone) contributed 90.83% of consolidated revenue at INR 236.45 Cr. International operations through subsidiaries in UAE, UK, and Germany contributed approximately 9.17% (INR 23.87 Cr) to the consolidated total.

Profitability Margins

Gross margin (Revenue minus Material Costs) stood at 68.68% for H1 FY26. Profit Before Tax (PBT) margin was 25.98% (INR 67.65 Cr), declining from 31.15% (INR 90.46 Cr) in H1 FY25. Net margin (Total Comprehensive Income) was 19.63% (INR 54.26 Cr) compared to 22.25% in the previous year.

EBITDA Margin

EBITDA margin for H1 FY26 was 30.68% (INR 79.88 Cr), a decrease from 35.73% (INR 103.74 Cr) in H1 FY25. The decline is primarily attributed to a 10.7% drop in other income and a 10.3% drop in operational revenue.

Capital Expenditure

Capital Work in Progress (CWIP) increased significantly by 413.31% to INR 8.47 Cr as of September 30, 2025, compared to INR 1.65 Cr as of March 31, 2025, indicating active investment in capacity expansion.

Credit Rating & Borrowing

CARE Ratings analyzed the company on a consolidated basis. Debt obligations were reported at INR 13.20 Cr for FY24. Finance costs for H1 FY26 were INR 1.43 Cr, down 23.66% YoY, suggesting reduced debt levels or lower borrowing costs.

⚙️ Operational Drivers

Raw Materials

The company utilizes rubber, high-tensile cords (polyester/aramid), and industrial fabrics to manufacture power transmission belts, though specific material-wise cost splits are not disclosed in available documents.

Capacity Expansion

Current installed capacity is not explicitly stated; however, the company has INR 8.47 Cr in Capital Work in Progress (CWIP) as of September 2025, up from INR 1.65 Cr in March 2025, representing a 413% increase in expansion activity.

Raw Material Costs

Cost of materials consumed was INR 81.52 Cr in H1 FY26, representing 31.31% of revenue from operations. This cost decreased by 10.21% YoY from INR 90.79 Cr in H1 FY25, tracking the revenue decline.

Manufacturing Efficiency

Manufacturing efficiency is supported by a consolidated approach where the parent company handles all manufacturing (INR 81.52 Cr material cost in both standalone and consolidated) while subsidiaries act as marketing arms.

Logistics & Distribution

Other expenses, which include distribution and logistics, were INR 63.35 Cr for H1 FY26, a sharp decline of 39.62% from INR 104.92 Cr in H1 FY25.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through global market expansion via established subsidiaries in UAE, UK, and Germany. The company is also investing in capacity, evidenced by a 413% increase in CWIP (INR 8.47 Cr) and maintains a highly liquid balance sheet (7.27x current ratio) to fund new initiatives.

Products & Services

Power Transmission Belts (including V-belts, Ribbed belts, and Timing belts) and related Power Transmission Solutions.

Brand Portfolio

PIX

Market Expansion

Target regions include the Middle East (via PIX Middle East FZC), Europe (via PIX Transmissions Europe Limited), and Germany (via PIX Germany GmbH).

🌍 External Factors

Industry Trends

The industry is shifting toward high-efficiency power transmission solutions driven by industrial automation and automotive modernization. PIX is positioning itself as a global solution provider with marketing arms in key industrial hubs.

Competitive Landscape

The company competes in the global power transmission market against both domestic and international belt manufacturers.

Competitive Moat

The company's moat is built on a robust financial position with extremely low leverage (0.04x Debt/Equity) and a global distribution network. This sustainability is high due to the capital-intensive nature of manufacturing and the technical requirements of industrial belts.

Macro Economic Sensitivity

The company shows high sensitivity to currency fluctuations, recording an unrealized forex loss of INR 6.67 Cr in H1 FY26, which represents 9.8% of PBT.

Geopolitical Risks

Operations are exposed to trade barriers and economic shifts in the UK, Germany, and UAE, where the company maintains 100% owned subsidiaries.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, Companies Act 2013, and Indian Accounting Standard 34 (Interim Financial Reporting).

Taxation Policy Impact

The effective tax rate for H1 FY26 was 19.8% (INR 13.39 Cr tax on INR 67.65 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Primary risks include foreign exchange volatility (INR 6.67 Cr loss impact) and fluctuations in raw material prices which constitute 31% of revenue.

Geographic Concentration Risk

Revenue is concentrated in India (90.8%), with the remaining 9.2% coming from international subsidiaries.

Credit & Counterparty Risk

Trade receivables stood at INR 105.53 Cr as of September 2025, representing 13.67% of total assets, down from INR 121.61 Cr in March 2025, indicating improved collection efficiency.