Pennar Industries Reports FY26 Revenue of Rs 3,620.09 Crore

Net Profit Climbs to Rs 138.83 Crore Marking Fourth Year of Margin Expansion

Reader Takeaway: Strong operational margins and healthy order inflows drive growth, offset by elevated debt and working capital requirements.

What just happened

Pennar Industries posted consolidated revenue of Rs 3,620.09 crore for FY 2025-26, up from Rs 3,226.58 crore in the previous year. Profit After Tax (PAT) grew to Rs 138.83 crore, with Earnings Per Share (EPS) rising to Rs 10.29. The company has successfully recorded four consecutive years of PAT margin expansion.

Why this matters

The results highlight the success of the company’s strategic shift toward higher-margin, prioritized business segments. By divesting its defense subsidiary and restructuring its solar division into the ZAP91 joint venture, Pennar is sharpening its focus on core manufacturing. Operational gains, including a 10% productivity boost and new robotic welding lines in the US, indicate improved leverage over manufacturing costs.

The backstory

The fiscal year was defined by portfolio rationalization. Management emphasized internal accruals to fund capital expenditure, aiming to keep investments under Rs 100 crore in FY27.

What changes now

Management has issued guidance targeting at least 20% PAT growth for FY27. Key priorities include aggressive debt reduction, with a stated goal to lower the debt-to-equity ratio to 0.8 or below.

Risks to watch

Gross debt-to-equity rose from 0.78 to 0.98 during the year. Additionally, the net working capital cycle stretched to 82 days, exceeding the 75-day internal target. Investors should track receivables normalization closely to ensure liquidity remains robust.

Context metrics

Final quarter order inflows stood at Rs 902.26 crore, providing solid revenue visibility. Pre-Engineered Buildings in India lead the order book with Rs 810 crore in backlog value, followed by Process Heating and US Metal Buildings.