Pitti Engg. Q2 FY27 Results (NSE: PITTIENG)
Signal: Growth reaccelerated
The read
The near-term trajectory is mixed: Q2 revenue accelerated to ₹57,843.80 lakh, +21.1% YoY versus Q1FY27's +15.8%, and gross margin expanded 718bps YoY, but quarterly PAT fell 15.5% YoY to ₹3,388.58 lakh and EBITDA margin narrowed sequentially to 15.4%; the investable inflection is the ₹450 crore phased capacity and value-addition program, not current earnings momentum.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹578.44 Cr | +21.1% | +9.3% |
| EBIT | ₹61.59 Cr | N/A | |
| Net profit | ₹33.89 Cr | -15.5% | |
| EPS | ₹9.18 | -14.8% | |
| EBIT margin | 15.4% |
P&L walk
Revenue increased to ₹57,843.80 lakh, +21.1% YoY and +9.3% QoQ, with gross margin expanding to 32.5% from 25.3% a year earlier as raw material cost fell to 67.5% of revenue; however, PAT declined 15.5% YoY to ₹3,388.58 lakh.
Key positives
- Revenue increased to ₹57,843.80 lakh, +21.1% YoY and +9.3% QoQ, improving on Q1FY27's 15.8% YoY growth.
- Gross margin expanded 718bps YoY to 32.5% as raw material cost declined to 67.5% of revenue from 74.7%.
- H1 operating cash flow improved to ₹32,302.42 lakh from ₹9,539.06 lakh despite the capex build.
- The board approved ₹450 crore of phased capex through FY2030-31 to increase manufacturing capacity, value addition and consolidate Karnataka lamination operations.
- Gross borrowings declined by ₹5,841.87 lakh from 31 March 2026.
Key concerns
- Q2 PAT declined 15.5% YoY to ₹3,388.58 lakh despite 21.1% revenue growth, indicating weaker earnings conversion.
- EBITDA margin was 15.4%, down 95bps QoQ, while employee and other operating expenses rose to ₹13,544.02 lakh.
- The ₹450 crore capex program will require execution across phases through FY2030-31, with no quantified capacity or return guidance in this filing.
- Current cash and bank balances declined to ₹10,173.12 lakh from ₹14,672.36 lakh at 31 March 2026 as the investment cycle progressed.
Research and educational content only. Not investment advice.