PRITIKA - Pritika Engineer

📊 NSE: PRITIKA 🏢 Castings & Forgings 📅 Last Updated: 12/14/2025 11:18

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew by approximately 30% YoY in H1FY26, primarily driven by the tractor components segment which benefited from improved rural sentiment and GST rate reductions.

Geographic Revenue Split

The majority of revenue is derived from the domestic North Indian market; however, the company recently secured an export order worth INR 50.5 Lakhs from a South Korean firm, marking an expansion into international markets.

Profitability Margins

PBILDT margins improved from 13.11% in FY24 to 14.60% in FY25, a growth of 149 basis points. Consolidated Net Profit Before Tax for H1 ended September 30, 2025, was INR 5.16 Cr.

EBITDA Margin

14.60% for FY25. The company is targeting a sustained margin above 13% to maintain its upgraded credit profile.

Capital Expenditure

The company is planning a preferential share issuance of up to INR 50 Cr to fund expansion into railway components. It also recently acquired 87,000 Sq. Ft of land in Hoshiarpur for capacity expansion.

Credit Rating & Borrowing

Upgraded to CARE BBB; Stable (Long-term) and CARE A3+ (Short-term) in November 2025. Long-term bank facilities are valued at INR 35.88 Cr.

⚙️ Operational Drivers

Raw Materials

Ferrous castings and metal scrap represent the primary raw material costs, given the company's focus on casting and machining operations.

Import Sources

Primarily sourced from domestic suppliers within India to support its manufacturing facilities in Punjab.

Key Suppliers

Not specifically named, but the company operates as a backward integration unit for its parent, Pritika Auto Industries Limited (PAIL).

Capacity Expansion

Achieved a record monthly dispatch of over 1,350 Metric Tons in September 2024. Planned expansion into railway and defense components will utilize the newly acquired 87,000 Sq. Ft land.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; the company is susceptible to price fluctuations which can impact margins if not passed through to OEMs.

Manufacturing Efficiency

Shifting focus toward higher-weight products (up to 250 Kgs) and adopting new technologies to improve realization per ton and operational throughput.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth is targeted through diversification into Railway and Defense components, the development of components for E-Tractors, and the execution of a new INR 50 Cr order from a multinational tractor manufacturer over the next five years.

Products & Services

Machined rear axle housings, differential cases, and various precision automotive castings ranging from 2 Kg to 250 Kg.

Brand Portfolio

Pritika Group

New Products/Services

Railway components, Defense components, and E-Tractor components are expected to be major new revenue contributors.

Market Expansion

Targeting international markets with a recent export order from South Korea and expanding domestic capacity in Hoshiarpur.

Market Share & Ranking

Prominent player in the machined rear axle housing and differential case market for tractors in North India.

Strategic Alliances

Strong parent-subsidiary linkage with Pritika Auto Industries Limited (PAIL), which holds a 70.81% stake in the company.

🌍 External Factors

Industry Trends

The tractor industry is evolving with a shift toward E-Tractors and higher-weight precision components; current industry growth is supported by favorable rural sentiments.

Competitive Landscape

Faces competition from both domestic firms and multinational automotive component manufacturers.

Competitive Moat

Sustainable moat derived from 20-50 year relationships with major OEMs and a fully integrated manufacturing process that creates high switching costs for clients.