Pennar Industries allotment of warrants and promoter pledge

Pennar Industries Limited has allotted 30,00,000 convertible equity warrants to Pennar Holdings Private Limited, a promoter entity, raising ₹12.60 crore upfront. The warrants, issued at a price of ₹168 each, are convertible into an equal number of fully paid-up equity shares with a face value of ₹5 upon receipt of the remaining 75% of the issue price. The total issue size aggregates to ₹50.40 crore. Separately, Mr. Aditya Narsing Rao, Promoter, Vice-Chairman and Managing Director, pledged 31,73,000 equity shares representing 2.35% of the total share capital to Bajaj Finance Limited on June 17, 2026, for personal borrowing. This transaction does not result in any change in the operations, management, or control of the company.

The disclosure was made to BSE Limited and National Stock Exchange of India Limited on June 18, 2026, in compliance with Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Following this event, Mr. Aditya Narsing Rao's total holding stands at 90,01,133 shares, constituting 6.67% of the total share capital, with 2.35% now encumbered.

Warrant Allotment Details

Parameter	Details
Allottee	Pennar Holdings Private Limited
Warrants Allotted	30,00,000
Issue Price	₹168 per warrant
Total Issue Size	₹50.40 crore
Upfront Payment (25%)	₹12.60 crore
Conversion Period	18 months from date of allotment

Promoter Pledge Details

Parameter	Details
Promoter	Aditya Narsing Rao
Shares Pledged	31,73,000
Percentage of Total Capital	2.35%
Pledgee	Bajaj Finance Limited
Date of Pledge	June 17, 2026
Reason	Personal borrowing

Residual Promoter Encumbrance

The table below presents the encumbrance details across all promoter entities following the latest pledge event.

Name	No. of Shares Held	% of Total Capital	No. of Shares Encumbered	% of Shares Encumbered
Joginpally Nrupender Rao HUF	6,60,114	0.49	0	0.00
Kondapalli Lavanya Kumar Rao HUF	82,200	0.06	0	0.00
Kondapalli Lakshman Rao HUF	95,200	0.07	0	0.00
J Rajyalakshmi	69,33,038	5.14	0	0.00
Joginpally Nrupender Rao	60,10,786	4.45	0	0.00
Lavanyakumar Rao Kondapalli	1,80,100	0.13	0	0.00
Avanti Rao	23,97,951	1.78	0	0.00
Kondapalli Sandhya	69,600	0.05	0	0.00
Jayanthi Puljal	17,91,751	1.33	0	0.00
Bhavana Puljal	16,94,027	1.26	0	0.00
Kalpana Puljal	17,50,091	1.30	0	0.00
Danapuneni Sudeepta Rao	18,61,054	1.38	0	0.00
Pennar Holdings Private Limited	2,10,05,455	15.57	15,00,000	1.11
Total	4,45,31,367	33.01	15,00,000	1.11

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.20%	+0.02%	+7.30%	-18.85%	-27.19%	+505.79%

Pennar Industries Limited reported a 16.22% year-on-year increase in profit after tax (PAT) to ₹138.83 crore for the fiscal year ended March 31, 2026 (FY26). Total income from operations for the full year grew 12.35% to ₹3,666.32 crore. For the quarter ended March 31, 2026 (Q4FY26), PAT rose 14.89% to ₹41.04 crore, while total income increased 2.26% to ₹933.70 crore. The company's operational efficiency improved, with the working capital cycle reducing to approximately 74–76 days from the previous 90–95 days, driven by technology-led operations including IoT, CNC, and MES systems.

The Board of Directors approved the audited consolidated financial results at its meeting held on May 26, 2026. The Audit Committee had reviewed and recommended the results on May 25, 2026. The company disclosed these figures in a publication filed with the exchanges under Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Pennar Industries recorded a 15.51% increase in EBITDA to ₹401.32 crore in FY26, with Q4 EBITDA surging 15.27% to ₹114.06 crore. The PAT margin improved to 4.44% in Q4FY26 from 3.94% in the corresponding period of the previous year. Earnings per share (EPS) for FY26 stood at ₹10.29, compared to ₹8.84 in the previous year.

Metric	Q4 FY26	Q4 FY25	YoY (%)	FY26	FY25	YoY (%)
Total Income (₹ Cr)	933.70	913.05	2.26%	3,666.32	3,263.27	12.35%
EBITDA (₹ Cr)	114.06	98.95	15.27%	401.32	347.44	15.51%
PAT (₹ Cr)	41.04	35.72	14.89%	138.83	119.45	16.22%
PAT Margin (%)	4.44%	3.94%		3.83%	3.70%
EPS (₹)	3.04	2.64		10.29	8.84

Operational Highlights

The company secured orders worth ₹902.26 crore across its various business verticals in the last three months. These orders are expected to be executed in the coming quarters. Pennar Industries serves customers in the Automotive, Rail & Aerospace, and Infrastructure sectors. The company provides design, manufacturing, and project execution services in India, the USA, and Europe.

Segment Performance

For FY26, the Diversified Engineering segment reported revenue of ₹1,871.77 crore, while the Custom Designed Building Solutions & Auxiliaries segment reported revenue of ₹1,835.60 crore. The total segment revenue before inter-segment adjustments stood at ₹3,707.37 crore. International revenue accounted for 24.1% of the total revenue in FY26, reflecting the company's growing global footprint.

Management Commentary and Outlook

Addressing shareholders in a Q4 FY26 earnings conference call, the management stated that the company is committed to a PAT growth of 20% for FY27. The Return on Capital Employed (ROCE) for FY26 stood at 20.23%, while the Return on Equity (ROE) was around 12%. The company aims to reduce its working capital cycle from 82 days to 75 days in the near term. Management highlighted that the order book remains healthy, with PEB India at ₹810 crore, PEB U.S. at $63 million, and the Boiler division at ₹145 crore. The company plans to focus on capital allocation discipline and tighter working capital management to enhance return metrics.