Pennar Industries Limited received a credit rating reaffirmation from CARE Ratings Limited on March 26, 2026, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating agency maintained its assessment of the company's creditworthiness while enhancing the quantum of long-term bank facilities.

Rating Details and Enhancement

CARE Ratings reaffirmed both long-term and short-term bank facility ratings for Pennar Industries, with a notable enhancement in the long-term facility amount. The rating review was conducted based on recent developments including the company's operational and financial performance for FY25 (Audited) and 9MFY26 (Unaudited).

The enhancement of Rs. 42.00 crore in long-term bank facilities reflects the company's expanded credit requirements and maintained creditworthiness.

Facility Structure and Banking Partners

The total facilities under rating amount to Rs. 1,766.96 crore, distributed across various categories. Long-term facilities of Rs. 754.46 crore comprise term loans of Rs. 279.46 crore and fund-based limits of Rs. 475.00 crore. Short-term facilities totaling Rs. 1,012.50 crore include fund-based limits, non-fund based limits for letters of credit and bank guarantees, and forward contracts.

Long-Term Facilities Breakdown

Term Loans (Rs. 279.46 crore):

• Axis Finance Ltd.: Rs. 85.46 crore across two facilities
• Bank of Baroda: Rs. 70.85 crore
• Bajaj Finance Ltd.: Rs. 66.79 crore
• Bandhan Bank Ltd.: Rs. 42.00 crore
• Other lenders: Rs. 14.36 crore

Fund-Based Limits (Rs. 475.00 crore):

• State Bank of India: Rs. 220.00 crore (Cash Credit)
• Bandhan Bank Ltd.: Rs. 58.50 crore (Cash Credit)
• Axis Bank Ltd.: Rs. 56.50 crore (Cash Credit)
• Other banking partners: Rs. 140.00 crore

Short-Term Facilities Overview

Short-term facilities include fund-based limits of Rs. 155.00 crore for payable finance and vendor finance schemes, and non-fund based limits of Rs. 857.50 crore for letters of credit, bank guarantees, and forward contracts across multiple banking relationships.

Regulatory Compliance and Disclosure

The company has fulfilled its disclosure obligations under SEBI regulations by informing both BSE Limited and National Stock Exchange of India about the rating reaffirmation. The information has also been uploaded on the company's website at www.pennarindia.com for stakeholder access.

CARE Ratings reserves the right to undertake surveillance and review of the ratings periodically, with at least one review annually. The ratings are applicable only to rupee equivalent facilities and do not factor in sovereign risk for foreign currency loans or rating-related trigger clauses.

Source: None/Company/INE932A01024/b847c11c-42f2-4d3c-801f-9244c340510c.pdf

Pennar Industries Limited published its Q3FY26 quarterly results and held an earnings conference call on February 16, 2026, showcasing robust financial performance and providing strategic insights into future growth prospects. The company reported consolidated total income of INR 959.02 crore, marking a significant 13.30% increase from INR 846.45 crore in the corresponding quarter of the previous year.

Conference Call Highlights and Management Commentary

During the earnings conference call hosted by PhillipCapital India Private Limited, Vice Chairman and Managing Director Aditya Rao emphasized that PAT was impacted by certain one-time costs during the quarter, including provisions related to labour code implementation and wage agreements. Excluding these non-recurring items of approximately INR 4.00 crore, PAT growth would have been approximately 20%, demonstrating the underlying strength of the business.

Consolidated Financial Performance

The company's quarterly performance showed consistent growth across key financial metrics. Net profit after tax reached INR 33.55 crore, up 10.14% from INR 30.46 crore in Q3FY25. Total comprehensive income increased to INR 36.68 crore compared to INR 34.60 crore in the previous year quarter. Earnings per share improved to INR 2.49 from INR 2.25, representing a 10.67% growth.

Business Segment Performance and Growth Drivers

Management highlighted strong performance across multiple business verticals. The PEB division's capacity utilization has improved significantly, with manpower challenges eased and inventory reduced by approximately 4,000 tons. The order backlog remains strong at INR 810 crore for PEB India, with expectations for further growth in coming quarters.

Ascent, the US subsidiary in metal buildings, delivered strong double-digit growth in both revenue and profitability. The order backlog increased to USD 52 million for Ascent buildings and USD 10 million for Ascent Structural. The boilers division saw a strong increase in order backlog to INR 123 crore, receiving substantial export orders from Australia and Sri Lanka.

Nine-Month Performance and Financial Metrics

For the nine-month period ended December 31, 2025, Pennar Industries demonstrated even stronger growth momentum. Consolidated total income reached INR 2,732.62 crore compared to INR 2,340.87 crore in 9M FY25, reflecting a 16.74% increase. Net profit after tax surged to INR 97.79 crore from INR 83.73 crore, while earnings per share improved to INR 7.25 from INR 6.20.

Strategic Outlook and Management Guidance

During the conference call, management reaffirmed their commitment to achieving double-digit profit growth north of 20% and maintaining long-term sustainable PAT margins at 7% levels within the next 2-3 years. The company's ROCE stands at 21.30% and return on equity at 12.10%, reflecting strong capital efficiency. Working capital at 76 days is expected to improve with stronger Q4 projections across key segments.

Regulatory Compliance and Publication

On February 16, 2026, Company Secretary & Compliance Officer Mirza Mohammed Ali Baig submitted notification to BSE and NSE regarding publication of Q3FY26 financial results in Business Standard and Nava Telangana newspapers. The consolidated financial results were reviewed by the Audit Committee on February 13, 2026, and approved by the Board of Directors on February 14, 2026.