💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 35.76% YoY to INR 116.45 Cr in Q2 FY26. Standalone revenue grew 34.99% YoY to INR 115.63 Cr. For H1 FY26, consolidated net revenue reached INR 231.06 Cr, a 32.35% increase from INR 174.57 Cr in H1 FY25.

Geographic Revenue Split

The company is focused on geographical diversification across strategic locations in India and increasing export contributions, though specific regional percentage splits are not disclosed.

Profitability Margins

Consolidated Net Profit Margin stood at 5.32% in Q2 FY26, while Standalone Net Margin was 3.58%. Profit After Tax (PAT) for Q2 FY26 was INR 6.61 Cr, a 37.52% YoY increase.

EBITDA Margin

Consolidated EBITDA margin was 15.99% in Q2 FY26 (INR 18.61 Cr), growing 23.92% YoY. Standalone EBITDA margin was 10.91% (INR 12.62 Cr), up 28.94% YoY.

Capital Expenditure

Consolidated Property, Plant and Equipment (PPE) increased to INR 234.80 Cr as of Sept 30, 2025, from INR 220.37 Cr in March 2025, representing an investment of approximately INR 14.43 Cr in H1 FY26. Capital work in progress stands at INR 10.75 Cr.

Credit Rating & Borrowing

CARE Ratings upgraded the long-term bank facilities to CARE BBB; Stable from CARE BBB-; Stable. Total rated bank facilities were enhanced to INR 97.32 Cr from INR 70.32 Cr.

⚙️ Operational Drivers

Raw Materials

Steel scrap, iron ore, and various alloys used for small forgings and castings, though specific cost percentages per material are not disclosed.

Import Sources

Primarily sourced from domestic suppliers within India to support manufacturing facilities in Mohali and other strategic locations.

Capacity Expansion

Current production volume for H1 FY26 reached 25,267 tons (up 23.89% YoY). The company is on course to achieve a target installed capacity of 1,00,000 tons.

Raw Material Costs

Raw material expenses are a significant component of the cost structure; the company notes susceptibility to price fluctuations which can compress margins due to low bargaining power with large OEMs.

Manufacturing Efficiency

Production volume grew 23.89% YoY in H1 FY26. Operational efficiency is cited as a key driver for the EBITDA margin improvement to 15.99%.

📈 Strategic Growth

Expected Growth Rate

32-35%

Growth Strategy

Growth will be achieved through expanding to 1,00,000 tons capacity, increasing presence in the LCV segment (currently ~7% of volumes), geographical diversification within India, and dedicated capex for global OEM export markets.

Products & Services

Small forgings, tractor components, automotive castings, and value-added machined components for the agricultural and commercial vehicle industries.

Brand Portfolio

Pritika Auto Industries, Pritika Engineering Components Limited, Meeta Castings Limited.

New Products/Services

Focus on developing value-added products and expanding the product basket for the Light Commercial Vehicle (LCV) segment.

Market Expansion

Targeting expansion in geographically strategic locations in India and increasing export contributions to global OEMs.

Strategic Alliances

Pritika Auto Industries Ltd holds a 70.81% stake in Pritika Engineering Components Limited and operates Meeta Castings Limited as a step-down subsidiary.

🌍 External Factors

Industry Trends

Increasing agri-mechanization and rural infrastructure development are driving demand. The industry is shifting toward value-added machined components rather than raw castings.

Competitive Landscape

Faces competition from both domestic foundries and multinational forging firms; mitigated by high-quality standards and timely delivery.

Competitive Moat

Durable advantages include a 50-year track record, long-standing relationships with top-tier OEMs, and integrated manufacturing capabilities from forging to machining.

Macro Economic Sensitivity

High sensitivity to agricultural GDP growth and the cyclical nature of the Indian tractor and commercial vehicle industries.

Consumer Behavior

Shift toward higher horsepower tractors and increased demand for LCVs for last-mile rural connectivity.

Geopolitical Risks

Trade barriers or global economic volatility could impact the company's strategy to increase export revenue from global OEMs.

⚖️ Regulatory & Governance

Industry Regulations

Adherence to manufacturing standards required by global OEMs and environmental norms for foundry operations.

Taxation Policy Impact

Consolidated current tax liabilities (net) were INR 2.21 Cr as of Sept 30, 2025.

Legal Contingencies

The company employs rigorous procedures for assessing legal risks in contracts and incorporates stringent terms to limit liabilities; no specific pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Dependence on monsoon patterns for tractor demand and volatility in raw material prices which could impact margins by 5-10%.

Geographic Concentration Risk

Revenue is primarily concentrated in India, with a strategic push to diversify into export markets.

Third Party Dependencies

High dependency on a limited number of large OEM clients for the majority of order inflows.

Technology Obsolescence Risk

Risk of technological shifts in the automotive sector (e.g., electrification) potentially rendering some traditional engine/transmission components outdated.

Credit & Counterparty Risk

Credit risk is managed through a formal credit policy and thorough research on client financial health; consolidated trade receivables are monitored to ensure timely payment.