Pitti Engineering Q2 Revenue Grows 16% to Rs 581 Crore

Revenue grew 16.3% year-over-year to Rs 581 crore; Rs 450 crore new capex announced for Bangalore.

Reader Takeaway: Strong volume growth in assemblies is offset by short-term forex and employee cost pressures impacting margins.

What just happened

Pitti Engineering posted a strong Q2 FY27 performance with total income rising to Rs 581 crore from Rs 499 crore in the same period last year. H1 revenue also saw a healthy 15% increase, reaching Rs 1,110 crore. While revenue grew, adjusted PAT was Rs 36 crore against Rs 43 crore in Q2 FY26, largely due to base effects from government incentives booked in the previous year.

Why this matters

The company is pivoting toward higher-margin, value-added assemblies rather than just loose laminations. Data centers are emerging as a significant demand driver alongside established sectors like railways and mining. This strategic shift is intended to drive sustained profitability despite short-term margin fluctuations.

Capex and Strategic Updates

A new Rs 450 crore expansion program for the Bangalore facility was announced. This includes Rs 125 crore for land and Rs 325 crore for machinery and infrastructure. The goal is to reach a sheet metal capacity of 160,000 metric tons and machining capacity of 1.31 million hours by FY31. This expansion runs parallel to the ongoing Rs 290 crore Hyderabad project, demonstrating an aggressive growth trajectory.

Risks to watch

Management noted that Q2 EBITDA margins were impacted by Rs 4.61 crore in forex losses and rising employee costs as the company scales. While power and fuel cost pass-throughs are expected to normalize by January, the company remains cautious about Q3 due to seasonal holidays in India and Europe.

What to track next

Watch for the execution of the Bangalore capacity expansion and the normalization of margins toward the 17% target in the coming quarters. Increased demand from the data center segment will be a key indicator for future revenue growth.