Pennar Industries Limited (PENIND)
₹171.79 +0.12% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Pennar Industries' revenue was ₹870 Cr (+2.9% year on year, -5.9% on the previous quarter), and net profit ₹35.4 Cr (+10.7% year on year); the operating margin was 10.6%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹870 | +2.9% | -5.9% |
| Operating profit | ₹92.7 | +7.7% | -11.8% |
| Net profit | ₹35.4 | +10.7% | -13.6% |
| EPS (₹) | 2.62 | +10.5% | -13.8% |
| Operating margin | 10.6% | — | — |
PENIND delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 45.3% of the PENIND shares traded on NSE were taken to delivery, against the stock's own 20-session average of 47.1%. That is close to its usual level. Volume was 0.2 times its average, well below normal.
Delivery in the last 5 sessions: 51.5% · 51.4% · 51.5% · 51.8% · 45.3%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
CARE Ratings has reaffirmed Pennar Industries Limited's credit ratings for its total bank facilities aggregating to ₹2,025.02 crore. Long-term bank facilities were reaffirmed at 'CARE A; Stable' with the rated amount enhanced from ₹754.46 crore to ₹1,067.52 crore. Short-term bank facilities were reaffirmed at 'CARE A1', while the rated amount was reduced from ₹1,012.50 crore to ₹957.50 crore. The total rated facilities represent approximately 55.6% of the company's TTM revenue of ₹3,645 crore and support its working capital and expansion needs.
- Long-term bank facilities rating reaffirmed at 'CARE A; Stable' and enhanced to ₹1,067.52 crore from ₹754.46 crore
- Short-term bank facilities rating reaffirmed at 'CARE A1', reduced to ₹957.50 crore from ₹1,012.50 crore
- Total bank facilities rated across term loans and fund/non-fund limits stand at ₹2,025.02 crore
- Total term loan component stands at ₹562.52 crore, including a ₹165.00 crore proposed facility
Pennar Industries has received final listing and trading approvals from BSE and NSE for 5,50,000 equity shares following the conversion of warrants allotted to the promoter, Pennar Holdings Private Limited. The shares carry a face value of Rs 5 each and were issued at a premium of Rs 163 each (issue price Rs 168 per share), representing an aggregate value of approximately Rs 9.24 crore. Trading in these shares becomes effective from September 29, 2026, with the shares locked in until March 31, 2028.
- Final listing and trading approval received for 5,50,000 equity shares
- Issued at a face value of Rs 5 and premium of Rs 163 (issue price of Rs 168 per share)
- Trading effective on BSE and NSE from September 29, 2026
- Shares are under lock-in until March 31, 2028
- Allotted to promoter entity Pennar Holdings Private Limited upon warrant conversion
Pennar Industries has scheduled its 50th Annual General Meeting (AGM) for September 24, 2026, at 11:00 AM IST through video conferencing. The cut-off date to determine shareholder voting eligibility is September 17, 2026. Remote e-voting will run from September 21, 2026 (9:00 AM) to September 23, 2026 (5:00 PM). E-voting services are being provided by KFin Technologies Limited.
- 50th Annual General Meeting to take place on September 24, 2026, at 11:00 AM IST via VC/OAVM
- Cut-off date for remote e-voting eligibility set for September 17, 2026
- Remote e-voting window open from September 21, 2026 (9:00 AM) to September 23, 2026 (5:00 PM)
- E-voting facility provided by KFin Technologies Limited
Pennar Industries Limited has announced that its 50th Annual General Meeting (AGM) will be conducted via video conferencing on September 24, 2026, at 11:00 AM IST. The cut-off date to determine shareholder eligibility for remote e-voting is fixed as September 17, 2026. The remote e-voting window will open on September 21, 2026 (9:00 AM) and close on September 23, 2026 (5:00 PM). This is a routine administrative compliance update regarding shareholder voting procedures.
- 50th Annual General Meeting scheduled for September 24, 2026, at 11:00 AM IST
- Record/Cut-off date for remote e-voting set for September 17, 2026
- Remote e-voting period runs from September 21, 2026 (9:00 AM) to September 23, 2026 (5:00 PM)
- E-voting services to be facilitated by KFin Technologies Limited
Pennar Industries Limited submitted its Annual Report for FY 2025-26 pursuant to Regulation 34 of SEBI LODR Regulations. For FY26, total income grew 12.35% YoY to ₹3,666.32 crore, EBITDA rose 15.51% to ₹401.32 crore, and PAT increased 16.22% to ₹138.83 crore with an EPS of ₹10.29. The company closed FY26 with strong forward visibility, including an India PEB order backlog of ₹810 crore, US structural steel backlog of USD 63 million, and Boilers backlog of ₹145 crore. Total net worth stood at ₹1,163.15 crore with a debt-to-equity ratio of 0.98x.
- FY26 Total Income reached ₹3,666.32 crore with EBITDA at ₹401.32 crore and PAT at ₹138.83 crore
- Pre-Engineered Buildings (PEB) India backlog stood at ₹810 crore as of March 31, 2026
- US metal buildings and structural steel combined backlog closed at USD 63 million
- Order inflows during the final quarter of FY26 totaled ₹902.26 crore
- Balance sheet closed with net worth of ₹1,163.15 crore and debt-to-equity of 0.98x
Pennar Industries Limited has issued the notice for its 50th Annual General Meeting (AGM) scheduled for September 24, 2026, via video conferencing. Key agenda items include the adoption of audited financial statements for FY26, the reappointment of Non-Executive Director Eric James Brown who retires by rotation, and the ratification of cost auditor remuneration of Rs 1,00,000 p.a. for FY27. Remote e-voting services will be managed by KFin Technologies Limited. This is a standard statutory compliance filing with no operational or financial impact.
- 50th Annual General Meeting scheduled for September 24, 2026, at 11:00 AM IST via VC/OAVM
- Approval sought for adoption of standalone and consolidated audited financials for FY26
- Re-appointment of Non-Executive Non-Independent Director Mr. Eric James Brown (DIN: 07670880)
- Ratification of remuneration of Rs 1,00,000 p.a. payable to Cost Auditor M/s. Kandikonda & Associates for FY27
Pennar Industries Limited has approved an additional corporate guarantee of ₹34 crore and pledged additional shares in its joint venture, ZAP91 Solar India Private Limited. The guarantee is extended to CTL Trusteeship Limited in connection with Non-Convertible Debentures (NCDs) issued by ZAP91 Solar. The guarantee creates a contingent liability of ₹34 crore, representing approximately 3.5% of Pennar's net worth (₹979 crore). The company confirmed there is no immediate financial impact unless the JV fails to meet repayment obligations.
- Approved additional Corporate Guarantee of Rs.34 crore for JV ZAP91 Solar India Private Limited
- Pledged additional shareholding in ZAP91 Solar in connection with NCDs issued to CTL Trusteeship Limited
- Constitutes a contingent liability of Rs.34 crore (~3.5% of net worth)
- No promoter group interest involved in the transaction
Pennar Industries released its Q1 FY27 earnings call transcript, reporting a 16.04% YoY increase in PBT to ₹46.8 crore despite moderate revenue growth of 3.58% YoY to ₹884.55 crore, driven by operating leverage and tighter cost controls. The company highlighted record order books across segments, with India Pre-Engineered Buildings (PEB) crossing ₹1,008 crore and US PEB backlog reaching over $100 million (up from ~$70 million). The Boilers vertical also touched a peak order backlog of ₹150.75 crore with entry into pharma, while Hydraulics (backlog ₹30 crore) saw softness from US tariff uncertainties. Management guided for sequential double-digit growth in revenue and profitability starting Q2 FY27 as execution scales up.
- Q1 FY27 PBT grew 16.04% YoY to INR 46.8 crore with EBITDA rising 13.3% to INR 106.8 crore.
- PEB India order book hit an all-time peak of INR 1,008 crore (~27.7% of TTM revenue), alongside US PEB backlog crossing USD 100 million.
- Boilers division reached a record order backlog of INR 150.75 crore, securing its first pharma sector orders.
- Management guided for double-digit sequential growth in revenue and profitability in Q2 FY27 backed by order execution.
Pennar Industries has made the audio recording of its Q1FY27 earnings conference call available to the public. This follows the company's recent financial performance where it reported a TTM revenue of ‡3,621 Cr and a PAT of ‡139 Cr. The call likely addresses management's progress on the India PEB order book, which was previously reported at ‡880 Cr with a target to exceed ‡1,000 Cr. Investors can use this recording to gauge management's strategy regarding high interest costs of ‡150 Cr and the integration of the US-based Telco acquisition.
- Audio recording for Q1FY27 earnings call released on August 13, 2026
- Company maintains a TTM revenue base of ‡3,621 Cr with an OPM of 12.3%
- India PEB order book previously stood at ‡880 Cr with a growth target of ‡1,000 Cr+
- Annual interest costs of ‡150 Cr remain a key drag on net profitability
- Debt-to-Equity ratio stands at 1.05 as per latest financial context
Pennar Industries reported a steady Q1 FY27 with revenue from operations at ₹870.42 Cr, up 2.9% YoY. Net profit (PAT) grew by 10.79% to ₹35.41 Cr, outperforming revenue growth due to EBITDA margin expansion from 11.15% to 12.27%. The Custom Designed Building Solutions segment was the primary driver, growing 23.3% YoY to ₹507.79 Cr. Additionally, promoters injected ₹6.93 Cr through the conversion of 5.5 lakh warrants in July 2026.
- EBITDA increased by 13.26% YoY to ₹106.79 Cr, reflecting improved operational efficiency.
- Custom Designed Building Solutions segment revenue rose to ₹507.79 Cr from ₹411.87 Cr in the previous year's quarter.
- Promoters converted 5,50,000 warrants into equity shares on July 14, 2026, at a balance payment of ₹126 per warrant.
- International revenue contributed 24.1% of total revenue in FY26, up from previous years.
- Finance costs remained high but stable at ₹36.37 Cr for the quarter compared to ₹35.14 Cr YoY.
Pennar Industries reported a modest 3.58% YoY growth in total income to ₹884.55 Cr for Q1FY27, but demonstrated stronger operational efficiency with EBITDA rising 13.26% to ₹106.79 Cr. Net profit (PAT) grew 10.79% to ₹35.41 Cr compared to ₹31.96 Cr in the previous year. A significant highlight is the acquisition of new orders worth ₹944 Cr during the quarter, which represents approximately 26% of its TTM revenue, providing strong visibility for the upcoming quarters.
- Total Income for Q1FY27 stood at ₹884.55 Cr, up 3.58% from ₹854.00 Cr YoY.
- Profit Before Tax (PBT) increased by 16.04% to ₹46.80 Cr, showing improved operating leverage.
- New order wins totaling ₹944 Cr across Steel, Tubes, PEB, and Railway verticals.
- EBITDA grew by 13.26% to ₹106.79 Cr, outpacing revenue growth.
- PAT reached ₹35.41 Cr, a 10.79% increase over the ₹31.96 Cr reported in Q1FY26.
Pennar Industries Limited has reported zero deviation in the utilization of funds raised through convertible equity warrants for the quarter ended June 30, 2026. The company raised ₹12.60 crore on June 18, 2026, which represents the initial 25% payment for the warrants. To date, the company has utilized ₹7.60 crore for working capital and ₹5.00 crore for general corporate purposes, while the planned ₹20.40 crore capital expenditure remains unutilized.
- ₹12.60 crore raised on June 18, 2026, as the 25% upfront payment for convertible equity warrants.
- Zero deviation reported between the intended objects of the issue and actual fund utilization.
- ₹7.60 crore utilized for working capital requirements out of a total planned ₹20.00 crore.
- ₹5.00 crore utilized for general corporate purposes out of a total planned ₹10.00 crore.
- ₹20.40 crore earmarked for capital expenditure has seen zero utilization as of June 30, 2026.
Pennar Industries reported a steady Q1 FY27 with consolidated revenue growing 2.9% YoY to ₹870.42 Cr. Net profit increased 10.8% YoY to ₹35.41 Cr, although it declined 13.7% sequentially from Q4 FY26. Growth was primarily driven by the 'Custom Designed Building Solutions' segment, which grew 23.3% YoY, offsetting a decline in the 'Diversified Engineering' segment. The company also reported the conversion of 5.5 lakh warrants into equity shares in July 2026, following a ₹12.60 Cr fundraise via warrants in June.
- Consolidated Revenue from operations stood at ₹870.42 Cr, a 2.9% increase over ₹845.67 Cr in Q1 FY26.
- Net Profit (PAT) grew 10.8% YoY to ₹35.41 Cr, compared to ₹31.96 Cr in the same period last year.
- Custom Designed Building Solutions segment revenue rose significantly to ₹507.79 Cr from ₹411.87 Cr YoY.
- Finance costs remained a significant drag at ₹36.37 Cr, roughly 4.2% of total revenue.
- Converted 5,50,000 warrants into equity shares on July 11, 2026, at an exercise price of ₹93 per share.
Pennar Industries (PENIND) has scheduled its Q1FY27 earnings conference call for August 13, 2026, at 11:30 AM IST. The call will feature top management, including the Vice Chairman & MD and the CFO, to discuss financial performance for the quarter ended June 2026. Investors will likely seek updates on the company's 20% growth target and the status of the India PEB order book, which was previously reported at ₹880 Cr. The company currently operates with a TTM revenue of ₹3,621 Cr and faces significant interest costs of ₹150 Cr annually.
- Earnings conference call scheduled for August 13, 2026, at 11:30 AM IST.
- Management participation includes Vice Chairman & MD Aditya Rao and CFO Shrikant Bhakkad.
- Discussion to focus on Q1FY27 results following a TTM revenue of ₹3,621 Cr.
- Company is monitoring a target to cross ₹1,000 Cr in the India PEB order book.
- High interest costs of ₹150 Cr remain a key drag on the TTM PAT of ₹139 Cr.
Pennar Industries has allotted 5,50,000 equity shares to its promoter entity, Pennar Holdings Private Limited, following the conversion of warrants. This transaction resulted in a cash inflow of Rs 6.93 crore, representing the 75% balance exercise price of the warrants. This is a partial conversion of the 30,00,000 warrants originally allotted in June 2026, with 24,50,000 warrants still outstanding. The total paid-up equity capital has increased to Rs 67.75 crore.
- Allotment of 5,50,000 equity shares of face value Rs 5 each to the promoter group.
- Receipt of Rs 6.93 crore as the 75% balance warrant exercise price at Rs 126 per warrant.
- Total issue price per warrant/share fixed at Rs 168.
- Promoter entity still holds 24,50,000 warrants convertible within 18 months from June 2026.
- Total issued and paid-up capital increased to 13,54,96,231 equity shares.
Financial Performance
Revenue Growth by Segment
Overall revenue for Q2 FY26 rose 22.04% to INR 919.6 Cr. The Pre-Engineered Buildings (PEB) division, which accounts for ~45% of revenue, delivered 30% sales growth. Diversified engineering segments grew at 10-12% YoY. The US subsidiary, Ascent, also reported strong double-digit revenue growth.
Geographic Revenue Split
The US market is a significant contributor through subsidiaries Ascent and Telco, with Ascent holding an order backlog of USD 51 million. European markets, specifically Germany, are being proactively expanded, though currently ~2% of revenue is impacted by US sanctions. India remains the primary market with a PEB order book of INR 880 Cr.
Profitability Margins
Q2 FY26 PAT grew 20.13% to INR 32.28 Cr. Q2 FY25 PAT margins were 3.56%, slightly muted due to a shift toward higher-margin businesses. The company targets a terminal velocity PBT margin of 7.5% within the next three years and a floor of 20% for annual PAT growth.
EBITDA Margin
PBILDT margin improved to 9.73% in FY25, up 94 bps from 8.79% in FY24. This improvement is driven by a higher contribution from the PEBS division and higher-margin products. Management expects margins to gradually reach 10-11% through scale effects and operating leverage.
Credit Rating & Borrowing
The company is rated by CARE Ratings/CareEdge. Interest costs are approximately 3.xx% of revenue, with a target to maintain them at 3%. Total annual interest drag is approximately INR 150 Cr, primarily from non-cash instruments and LCEs.
Operational Drivers
Raw Materials
Steel coils and sheets are the primary raw materials for PEB and engineering products. Labor costs are a significant operational driver; a labor shortage in Q2 FY26 impacted margins by 30-40 basis points.
Capacity Expansion
The company is focusing on improved capacity utilization in the PEB division to drive Q3 FY26 growth. The India PEB order book is expected to cross INR 1,000 Cr in the coming months.
Raw Material Costs
Gross margins were off by 2% in Q2 FY26 due to one-off labor cost increases and supply constraints. Procurement strategies focus on rationalizing fixed costs over a larger revenue base to improve operating leverage.
Manufacturing Efficiency
Efficiency is driven by scale effects; as revenue increases, fixed costs are rationalized. The PEB division is positioned for a strong Q3 FY26 backed by improved capacity utilization.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Growth is driven by five key levers: Body in White (automotive), Engineering Services, Boilers, Process Equipment, and Pre-Engineered Buildings (PEB). The strategy involves increasing market share in these large addressable markets and expanding the US footprint through the acquisition of Telco and the growth of Ascent.
Products & Services
Pre-engineered buildings (PEB), Boilers, Process Equipment, Body in White (automotive components), and Engineering Services.
Brand Portfolio
PEBS (India), Ascent (US), and Telco (US).
Market Expansion
Proactive expansion into the German and broader European markets to diversify revenue and mitigate geopolitical risks.
Market Share & Ranking
The company currently has a low market share in its five key growth sectors, which it views as an opportunity for automatic revenue and profit growth as it scales.
External Factors
Industry Trends
The PEB industry is seeing competitors achieve double-digit margins. Pennar is positioning itself to close a ~300 bps margin gap through scale and higher-margin product mixes.
Competitive Landscape
Key competitors in the PEB segment are currently outperforming Pennar in operating margins by roughly 300 basis points.
Competitive Moat
Moat is built on diversified engineering capabilities and scale in the PEB segment. Sustainability is driven by a large order backlog (INR 880 Cr in India, USD 51M in US) and long-standing relationships with blue-chip clients.
Consumer Behavior
Not applicable as the business is B2B engineering and infrastructure focused.
Geopolitical Risks
US sanctions impact approximately 2% of revenue, prompting a strategic shift toward domestic and European markets.
Regulatory & Governance
Industry Regulations
Operations are subject to US trade sanctions affecting 2% of revenue and standard manufacturing/pollution norms for engineering plants like Raebareli.
Risk Analysis
Key Uncertainties
Labor supply constraints (30-40 bps margin impact) and geopolitical shifts affecting US trade (2% revenue impact) are the primary uncertainties.
Geographic Concentration Risk
Revenue is concentrated in India and the US, with the US subsidiary Ascent being a major growth driver.
Third Party Dependencies
High dependency on contract labor for manufacturing operations, which caused margin aberrations in Q2 FY26.
Credit & Counterparty Risk
Receivables quality is high in the US segment with a 15-day realization cycle. Overall operating cycle is stable at 70 days.
