Pennar Industries Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Pennar Industries Ltd-$ filed with BSE on 29 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Pennar Industries reported Q4 FY26 total revenue of INR933.7 crores and PAT growth of 14.89% to INR41.04 crores, while full year FY26 revenue rose to INR3,666 crores with PAT growing 16.22% to INR138.83 crores. Management attributed margin improvement to a mix shift toward higher-margin businesses such as PEB U.S. and Engineering Services, while noting labor issues in the PEB India business during the year that have since been resolved. Working capital stood at 82 days and debt-equity was at 0.98x, with management stating plans to bring both down in the coming quarters.
Numbers mentioned
Total revenue: INR933.7 crores (Q4 FY26)
p. 3
“For the fourth quarter, our total revenue increased to INR933.7 crores and PAT grew by 14.89% to INR41.04 crores”
Aditya Rao, page 3 of the filed PDF · View the filing
PAT: INR41.04 crores (Q4 FY26)
p. 3
“For the fourth quarter, our total revenue increased to INR933.7 crores and PAT grew by 14.89% to INR41.04 crores”
Aditya Rao, page 3 of the filed PDF · View the filing
Total revenue: INR3,666 crores (FY26)
p. 3
“Our total revenue grew to INR3,666 crores and”
Aditya Rao, page 3 of the filed PDF · View the filing
EBIT: INR401.32 crores (FY26)
p. 4
“our EBIT expanded to INR401.32 crores”
Aditya Rao, page 4 of the filed PDF · View the filing
EPS: INR10.29 (FY26)
p. 4
“And EPS for the year stood at INR10.29 as opposed to INR8.84”
Aditya Rao, page 4 of the filed PDF · View the filing
PAT growth: 16.22% (FY26)
p. 4
“PAT grew 16.22% to INR138.83 crores.”
Aditya Rao, page 4 of the filed PDF · View the filing
PEB India capacity utilization: 70% (Q4 FY26)
p. 4
“Q4 capacity utilization is now at 70% and our current order backlog also has increased to INR810 crores”
Aditya Rao, page 4 of the filed PDF · View the filing
PEB India order backlog: INR810 crores
p. 4
“Q4 capacity utilization is now at 70% and our current order backlog also has increased to INR810 crores”
Aditya Rao, page 4 of the filed PDF · View the filing
PEB U.S. order backlog: $63 million
p. 4
“The current order backlog stands at about 63 million when you include Ascent Structural.”
Aditya Rao, page 4 of the filed PDF · View the filing
Hydraulics order backlog: INR34 crores
p. 4
“For Hydraulics, the order backlog is about INR34 crores increased from INR22 crores, the last time we spoke.”
Aditya Rao, page 4 of the filed PDF · View the filing
Boilers order backlog: INR145 crores
p. 4
“we have now increased the order to INR145 crores, and we have secured our highest capacity 100 ton per hour AFBC and 80 ton per hour WHR boilers”
Aditya Rao, page 4 of the filed PDF · View the filing
Q4 PAT margin: 4.44% (Q4 FY26)
p. 4
“Our Q4 PAT margin stood at 4.44%, which is an improvement over 3.9%, reflection of ongoing mix shift towards high-margin businesses.”
Aditya Rao, page 4 of the filed PDF · View the filing
Full year PAT margin: 3.83% (FY26)
p. 5
“For the full year, PAT margin came in at 3.83% compared to 3.7% in FY25.”
Aditya Rao, page 5 of the filed PDF · View the filing
ROCE: 20.23% (FY26)
p. 5
“ROCE for financial year '26 stood at 20.23% and the ROE stands at around 12%.”
Aditya Rao, page 5 of the filed PDF · View the filing
Working capital days: 82 days
p. 5
“Working capital currently stands at 82 days.”
Aditya Rao, page 5 of the filed PDF · View the filing
EBITDA: INR114 crores (Q4 FY26)
p. 5
“EBITDA has increased from INR98.95 crores to INR114 crores, an increase of 15.27%”
Shrikant Bhakkad, page 5 of the filed PDF · View the filing
Total income: INR3,666 crores (FY26)
p. 5
“For the full year, the total income has increased to INR3,666 crores, an increase of INR403 crores and overall 12.33% increase.”
Shrikant Bhakkad, page 5 of the filed PDF · View the filing
Custom Design Building Solutions revenue: INR516 crores (FY26)
p. 5
“Custom Design Building Solutions revenue grew from INR460 crores to INR516 crores at a consolidated level, an increase of 12.35%.”
Shrikant Bhakkad, page 5 of the filed PDF · View the filing
Diversified Engineering revenue: INR429.54 crores (FY26)
p. 6
“Diversified Engineering revenue stood at INR429.54 crores.”
Shrikant Bhakkad, page 6 of the filed PDF · View the filing
Cash and cash equivalents including other bank balances: INR269.93 crores
p. 7
“And if you include the other bank balances, we are at INR269.93 crores.”
Shrikant Bhakkad, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
PAT growth — 20% · FY27
stated firmly by Aditya Rao
p. 9
“Yes, sir. EPS growth 20%. Well, let me not say EPS because there is the question of supplementary warrants and equity coming in as well. So let me say, a PAT growth of 20% is what we are committed to it, we will ensure we achieve that.”
Aditya Rao, page 9 of the filed PDF · View the filing
Working capital days — 75 days · next few quarters
stated firmly by Aditya Rao
p. 5
“we are focused on reducing working capital days to 75 in the next few quarters”
Aditya Rao, page 5 of the filed PDF · View the filing
Debt-equity ratio — 0.8x · by end of the year
stated firmly by Management
p. 13
“Our stated goal is to get to 0.8 debt-equity. I think we can say that by the end of the year we'll get there through a combination of a big gap between the cash we generate versus the capex we'll have as an outflow, and also there's some equity capital coming in as well.”
Management, page 13 of the filed PDF · View the filing
Capex — sub-INR100 crores · FY27
stated firmly by Aditya Rao
p. 13
“We don't have extremely heavy capex plans. It comes in sub-INR100 crores, I think.”
Aditya Rao, page 13 of the filed PDF · View the filing
Finance cost — below 4%
stated firmly by Shrikant Bhakkad
p. 15
“So, we continue to guide you based on the revenue, we will be at below 4%.”
Shrikant Bhakkad, page 15 of the filed PDF · View the filing
Consolidated tax rate — 25% to 26%
stated firmly by Shrikant Bhakkad
p. 7
“We continue to guide you to a consolidated tax rate of approximately 25.5%, which is 25% to 26% -- in the range of 25% to 26% overall.”
Shrikant Bhakkad, page 7 of the filed PDF · View the filing
PEB India capacity utilization — around 80% · this financial year
stated as an aspiration by Aditya Rao
p. 22
“I think around 80% is certainly achievable for this financial year, and that will be goal.”
Aditya Rao, page 22 of the filed PDF · View the filing
Engineering Services revenue — INR100 crores · this year
stated as an aspiration by Aditya Rao
p. 17
“I'm hopeful we'll have some -- the metric that you said, at least INR100 crores should be something that we should absolutely achieve.”
Aditya Rao, page 17 of the filed PDF · View the filing
Debtor collection — next 6 to 8 weeks
stated conditionally by Aditya Rao
p. 16
“So, we are confident that in the next 6 to 8 weeks, we'll be able to hand over those sites and collect the amounts.”
Aditya Rao, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the order backlog is healthy and expected to grow over the next two quarters, and described being selective in taking orders.
Answered by Aditya Rao
Asked by Nitin Jain: Why has the PEB India order book declined quarter-on-quarter and how does the pipeline look?
p. 8
“In fact, we expect it to grow quarter-on-quarter over the next 2 quarters as revenue capacity utilization picks up.”
Aditya Rao, page 8 of the filed PDF · View the filing
CFO attributed the increase to business mix changes including higher-margin Engineering Services revenue, and said margins are expected to stay at similar levels.
Answered by Shrikant Bhakkad
Asked by Nitin Jain: What led to the sharp jump in gross margin and how sustainable is it?
p. 9
“Margins are sustainable. Margins have not changed while we had some ups and downs in this quarter.”
Shrikant Bhakkad, page 9 of the filed PDF · View the filing
Management said the shortfall was mainly revenue slipping from Q4 into Q1 rather than labor, and expects growth to continue.
Answered by Aditya Rao
Asked by Deepak Poddar: Was labor the only reason for the muted revenue growth and how should revenue growth be viewed for FY27?
p. 9
“No, I don't believe it was labor supply. I think there was a fair amount of revenue, which fell out of Q4 into Q1.”
Aditya Rao, page 9 of the filed PDF · View the filing
Management reiterated confidence, noting cost increases from energy inflation are being passed to customers and that they do not see a macro risk to the business model.
Answered by Aditya Rao
Asked by Vinod Krishna: How confident is management of 20% growth and 4% margins given the Iran war situation?
p. 11
“I don't anticipate any macro risk to our business model or on our revenue.”
Aditya Rao, page 11 of the filed PDF · View the filing
Management said the stated aim is to reduce debt-equity to 0.8x by combining cash generation, lower capex and some equity infusion.
Answered by Management
Asked by Shubhankar Gupta: Are there debt reduction plans for FY27/28 given rising debt and interest cost?
p. 13
“Our stated goal is to get to 0.8 debt-equity.”
Management, page 13 of the filed PDF · View the filing
Management said the order book is now combined and stands at about $62 million.
Answered by Aditya Rao
Asked by Rahul Kumar: What is the U.S. order book split between S&B and Telco?
p. 14
“In the US, we have now moved to a combined order book for Ascent Buildings & Structurals and that the current as of now picture, it's about 62 million is the current order backlog.”
Aditya Rao, page 14 of the filed PDF · View the filing
Management said labor has become harder to source across all plants and the company is responding with more contractors and automation, but no longer sees labor as a major issue.
Answered by Aditya Rao
Asked by Rahul Kumar: Is labor becoming an issue in North India plants due to rising minimum wages?
p. 15
“So, we don't have a labor concern anymore.”
Aditya Rao, page 15 of the filed PDF · View the filing
Management declined to give explicit revenue guidance but said the analyst's estimate was not far off.
Answered by Aditya Rao
Asked by Dilip Kumar Sahu: When will the U.S. business reach optimum profitability and what quarterly revenue run-rate is realistic by Q4?
p. 17
“I will not be able to provide revenue guidance, profit we do it, but I'm not disagreeing with your numbers.”
Aditya Rao, page 17 of the filed PDF · View the filing
Management estimated the U.S. metal building and component market at over $10 billion and said Pennar's current share is very small, sub 3%.
Answered by Aditya Rao
Asked by Pratyush: What is the size of the addressable U.S. PEB market and Pennar's current share?
p. 21
“So right now, our market share in the U.S. would be very small. We would be sub 3%.”
Aditya Rao, page 21 of the filed PDF · View the filing
Management said price variation clauses cover most of the order backlog, and expects margins to hold steady over the medium term.
Answered by Aditya Rao
Asked by Ameya Deosphali: Are there pricing challenges in the PEB India competitive landscape given capacity constraints across the industry?
p. 22
“I think margins will hold steady, slight hystericism in the last few months maybe, and that I'm sure other listed PEB companies also would have spoken to that.”
Aditya Rao, page 22 of the filed PDF · View the filing
Management explained the increase was due to currency depreciation impact on imported equipment and a technology change, and said no further capital infusion is expected.
Answered by Aditya Rao
Asked by Dilip Kumar Sahu: Why did Pennar make an additional INR5 crores investment in the solar joint venture despite earlier saying no more capital infusion?
p. 24
“So, what I will happily guide to is we're not going to come back to you and ask you for a larger -- another equity investment in a few quarters down the line or something like that.”
Aditya Rao, page 24 of the filed PDF · View the filing
Risks flagged
Labor supply issues in PEB business unit during FY26
p. 4
“The business had faced some headwinds in the financial year due to some labor concerns.”
Aditya Rao, page 4 of the filed PDF · View the filing
U.S. tariff impact on Hydraulics business
p. 4
“The U.S. tariff impact has now moderated and customers have started placing orders.”
Aditya Rao, page 4 of the filed PDF · View the filing
Energy price inflation raising commodity and operating costs
p. 11
“We cannot swallow INR10,000 increase in our commodity pricing on a per ton basis nor can we swallow a 10% increase in our operating costs, right?”
Aditya Rao, page 11 of the filed PDF · View the filing
Elevated working capital and debtor collection delays
p. 6
“There are certain debtors which are stuck for a certain period of time and we are confident that we will be able to collect in the coming quarters.”
Shrikant Bhakkad, page 6 of the filed PDF · View the filing
Elevated debt-equity ratio
p. 18
“0.98 is not a number we are comfortable at.”
Aditya Rao, page 18 of the filed PDF · View the filing
Labor becoming harder to source across plants in India and the U.S.
p. 15
“Across all of our plants right now, yes, labor is harder to come, harder to get, and then it used to be historically that's being met through an expansion of our resources in terms of how we procure labor.”
Aditya Rao, page 15 of the filed PDF · View the filing
Solar revenue decline impacting diversified engineering segment
p. 21
“there are some solar orders -- solar revenue that we have had some hit during the quarter and that's the reason diversified business has reduced.”
Shrikant Bhakkad, page 21 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.