Pritika Auto Industries reported consolidated revenue of ₹144.97 crore for the first quarter of FY27, reflecting a 26.5% year-on-year growth compared to ₹114.61 crore in Q1FY26. The top-line expansion was supported by healthy demand from its existing customer base, improved business volumes, and the continued execution of ongoing programs.

Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹19.50 crore, up 11.8% year-on-year. Net profit after tax (PAT) increased by 16.7% to ₹7.11 crore. On a standalone basis, revenue reached ₹141.68 crore, up 24.6% YoY, with PAT at ₹4.13 crore, marginally higher than the previous year’s ₹4.09 crore.

Operational Milestones and New Orders

The company achieved its highest-ever monthly dispatch in July 2026, reaching approximately 4,800 metric tonnes. This operational milestone highlights the scale-up of manufacturing capabilities and efficient execution against customer requirements.

Management highlighted significant business development activity during the quarter:

• Secured an order from KION USA, with sample submission expected in August 2026 and regular production slated for November 2026, subject to qualification approvals.
• Received repeat and incremental orders from established domestic customers including Mahindra & Mahindra Swaraj and CNH Industrial.

Margin Dynamics and Cost Pressures

Despite robust revenue growth, margins faced headwinds due to higher raw material prices effective from March and June, alongside increased costs for chemicals and industrial gases.

Chairman and Managing Director Harpreet Singh Nibber noted that the company has received partial customer compensation for these cost increases and expects substantial recovery in the coming quarter, which should support margin normalization.

What the Numbers Show

The divergence between revenue growth (26.5%) and EBITDA growth (11.8%) indicates that cost inflation outpaced pricing power or volume leverage in the quarter. However, the sequential improvement in revenue (up 4.7% from Q4FY26) combined with record monthly dispatches suggests that operational momentum is accelerating, potentially setting the stage for better margin realization as utilization scales and compensation kicks in.

Capacity Expansion and Future Outlook

Pritika Auto is focusing on scaling up its Lost Foam Casting (LFC) plant, where technology development has been stabilized over the past three years. The company expects the LFC plant to achieve approximately 65% to 70% capacity utilization by the end of FY27, contributing progressively to overall profitability.

With an installed capacity of 72,000 tonnes per annum across five plants in Punjab and Himachal Pradesh, the company aims to reach 100,000 tonnes in the medium term. Management emphasized continued focus on improving operational efficiencies, enhancing product mix, and expanding presence in high-growth automotive segments, including electric and hybrid mobility opportunities.

Pritika Auto Industries Ltd has approved a capital raising measure for its subsidiary, Pritika Engineering Components Limited (PECL), through a preferential issue and convertible warrants. The Board of Directors also authorized the conversion of outstanding unsecured loans into equity shares to strengthen the subsidiary’s balance sheet.

The approvals were granted during a board meeting held on August 18, 2026. The company emphasized that the proposed transaction will not result in a loss of majority control over PECL.

Capital Raise Details

The preferential issue involves two distinct components for PECL:

• Equity Shares: Up to 64,00,000 equity shares with a face value of ₹5 each will be issued to Promoter/Promoter Group and Non-Promoter-Public Category investors.
• Convertible Warrants: Up to 4,00,000 convertible warrants will be issued exclusively to the Non-Promoter-Public Category.

The issue price for both instruments will be determined in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Final approval from PECL members and other requisite permissions is required before execution.

Debt-to-Equity Conversion

In a separate resolution, Pritika Auto Industries approved an investment in PECL through the conversion of its outstanding unsecured loans into equity shares. This transaction covers up to 50,00,000 equity shares, each with a face value of ₹5. The issue price for these shares will not be less than the specified price calculated as per SEBI ICDR Regulations 2018.

Corporate Governance Updates

The board also addressed routine corporate governance matters:

• Directors’ Report: Approved for the year ended March 31, 2026.
• Annual General Meeting (AGM): Scheduled for September 29, 2026, to be conducted via Video Conferencing (VC) and Other Audio Visual Means (OAVM).
• Record Closure: The Register of Members and Share Transfer Books will remain closed from September 23, 2026, to September 29, 2026, inclusive.
• E-Voting: The cut-off date for e-voting eligibility is September 22, 2026. Voting will commence on September 26, 2026, at 9:00 am and close on September 28, 2026, at 5:00 pm.
• Scrutinizer: Mr. Sushil K Sikka, Practicing Company Secretary, was appointed to conduct the voting process and declare the results.