Pitti Engineering Limited , a leading manufacturer of engineering products, has announced its financial results for the second quarter of fiscal year 2025-26, showcasing steady growth in both revenue and profitability.

Financial Highlights

The company's performance for Q2 FY2025-26 demonstrates resilience and growth:

The company's net profit for the quarter increased by 5.5% year-over-year to ₹401.00 crore, up from ₹380.00 crore in the same period last year. This growth in profitability was supported by a robust 10.9% increase in revenue, which rose to ₹4,770.00 crore from ₹4,300.00 crore in Q2 FY2024-25.

Operational Performance

Pitti Engineering's operational efficiency improved significantly during the quarter, as evidenced by the growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). EBITDA for Q2 FY2025-26 stood at ₹777.00 crore, marking a substantial 17.5% increase from ₹661.00 crore in the corresponding quarter of the previous year.

The company's EBITDA margin also saw an improvement, expanding by 87 basis points to reach 16.26% compared to 15.39% in Q2 FY2024-25. This enhancement in margin indicates the company's ability to manage costs effectively while driving revenue growth.

Corporate Governance Update

In a separate announcement, Pitti Engineering disclosed plans to change its Registrar and Transfer Agent (RTA). The Board of Directors has approved the appointment of MUFG Intime India Private Limited as the new RTA, replacing XL Softech Systems Limited. This change aims to leverage MUFG's advanced technological infrastructure and expertise in shareholder services.

The effective date of this transition will be communicated after necessary agreements are executed and regulatory approvals are obtained. This move is expected to enhance the company's shareholder service capabilities and streamline share-related processes.

As Pitti Engineering continues to focus on growth and operational excellence, these financial results and corporate governance improvements reflect the company's commitment to creating value for its shareholders and maintaining transparency in its operations.

Pitti Engineering has received a positive order from the Commissioner of Income Tax (Appeals) -12, Hyderabad, marking a significant victory in its ongoing tax dispute. The ruling, dated August 19, 2025, overturns a previous tax demand of ₹923.08 lakhs (approximately ₹9.23 crore) imposed by the Assessing Officer for the Assessment Year 2017-18.

Background of the Tax Dispute

The tax controversy originated from an order issued on December 29, 2019, under section 143(3) by the Assessing Officer. This order sought to include certain unsecured loans received by Pitti Engineering as taxable income. In response, the company filed an appeal before the Commissioner of Income Tax (Appeals) on January 21, 2020, challenging the assessment.

Favorable Ruling Details

The recent order, downloaded from the Income Tax portal on August 20, 2025, rules in favor of Pitti Engineering. Key points of the ruling include:

• The Commissioner of Income Tax (Appeals) has deleted the additions made by the Assessing Officer.
• The disputed demand of ₹923.08 lakhs, which had been disclosed in the company's financial statements since FY2019-20, is now effectively nullified.

Impact on Financial Reporting

Pitti Engineering had been reporting the disputed amount in its Standalone and Consolidated Financial Statements since the fiscal year 2019-20. The favorable ruling is likely to have a positive impact on the company's financial position, potentially allowing for the reversal of any provisions made for this tax liability.

Market Implications

The resolution of this tax dispute removes a significant contingent liability from Pitti Engineering's books. This development may be viewed positively by investors and could potentially influence the company's market valuation.

Compliance and Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Pitti Engineering promptly informed the stock exchanges about this material development. The disclosure was made in accordance with the SEBI circular dated November 11, 2024, demonstrating the company's commitment to transparent communication with its stakeholders.

As the markets digest this information, investors and analysts will likely be keen to understand the full financial implications of this favorable tax ruling on Pitti Engineering's future performance and financial health.