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.

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.

Pennar Industries Limited approved an investment of ₹5.80 crore in ZAP91 Solar India Private Limited, a joint venture company, to acquire a 45% stake. The cash consideration, made in a single tranche, will fund the completion of a module manufacturing plant, including commissioning and commercial production. The transaction is expected to be completed before June 30, 2026.

Investment Details

The joint venture entity operates in the renewable energy sector, specifically within the solar energy segment. ZAP91 Solar India Private Limited was incorporated on December 27, 2024, and is currently in the development phase of its manufacturing unit, which has not yet commenced production. The plant is located in Sadashivpet, Telangana, India.

The Board confirmed that aside from the share capital held by Pennar Industries in the joint venture, the promoter, promoter group, or group companies have no interest in ZAP91 Solar India Private Limited. No governmental or regulatory approvals are required for this acquisition.