1. At a Glance
Pix Transmission Ltd – the desi belt manufacturer that literally holds India’s industrial engines together – just reported a quarter that feels like a power transmission slipping between gears. With amarket cap of ₹1,983 croreand acurrent price of ₹1,453, the stock trades at aP/E of 20.6, a fair valuation for a company that’s as disciplined as a Japanese factory but as cyclical as a Nagpur orange season.
InQ2FY26 (September 2025), the company postedsales of ₹139 croreandPAT of ₹23.5 crore, showing aYoY drop of 41.9% in profitand13.5% fall in sales. But don’t panic yet — the business still runs with aROCE of 26.9%and aROE of 20.7%, which is like an athlete maintaining six-pack abs even after a few samosas.
They remain almostdebt-free (₹29.8 crore)with acurrent ratio of 7.11— meaning, they can pay off all their liabilities and still have enough cash left to build another factory. The company’s export share has climbed to60%of total revenue, cementing its place as India’s underappreciated export hero in rubber power transmission belts.
Still, with a-33.6% one-year return, the market clearly thinks the belt has gotten too tight. Time to see what’s rubbing the wrong way.
2. Introduction – The Belt That Runs the Machines and the Market
Once upon a time, industrial belts were just boring rubber loops. Then camePix Transmission Ltd, India’s very own belt baron, turning rubber into rupees and belts into brand equity. Headquartered in Nagpur – the land of oranges and overachieving MSMEs – Pix has built its empire by holding together machines across continents.
But let’s face it – being a belt maker in 2025 isn’t exactly sexy. You’re not making AI chips, you’re not making EVs, you’re literally making rubber that rotates pulleys. Yet Pix manages to make this business look elegant. How? Exports, efficiency, and an after-sales market that loves replacement belts more than IT loves coffee breaks.
In a world where inflation, forex, and raw material prices keep swinging, Pix has quietly stayed profitable forover a decade, compounding sales at11% over 10 yearsand profits at a jaw-dropping40%. That’s not a company — that’s a compounder disguised as an engineering uncle.
However, FY25 wasn’t a fairy tale. Margins were solid at23% OPM, but growth slowed to a crawl. The global slowdown and energy cost spikes hit them right where it hurts – exports. And with Europe being their top market, they probably feel every German factory sneeze in Nagpur.
3. Business Model – WTF Do They Even Do?
Pix Transmission isn’t just selling belts. They’re in thebusiness of transmitting power— from engines to machines, from motion to money. The company manufacturesindustrial, agricultural, automotive, and special-purpose belts, and evenaccessories like powerware products.
Their belts find their way into:
- Cement plantsthat never sleep.
- Automotive factorieswhere robots need rubber.
- Agriculture equipmentthat needs to keep moving.
- Cold storages and food processing unitsthat can’t afford breakdowns.
More than80% of products are sold under their own brand, and that’s rare in Indian manufacturing where OEMs usually call the shots. They’ve builttwo world-class manufacturing unitsin Hingna and Nagalwadi, both running with the precision of a Swiss clock — except it’s made in Nagpur.
Export is the crown jewel —60% of revenuenow comes from Europe, the U.S., and the Middle East. They’ve gotsubsidiaries in the UK, Germany, and UAE, and over250 channel partners in 100+ countries. In short: a Made-in-Nagpur product running in machines from Manchester to Munich.
And the cherry on top? They divested their non-coreHose Divisionback in 2012 for a neat profit, exiting before it could become a capital drain. Smart move – fewer hoses, more cash flow.
4. Financials Overview – Let’s
Crunch the Q2FY26 Numbers
| Metric | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 139 | 160 | 122 | -13.5% | +13.9% |
| EBITDA (₹ Cr) | 34 | 52 | 28 | -34.6% | +21.4% |
| PAT (₹ Cr) | 23.5 | 41 | 28 | -41.9% | -16.1% |
| EPS (₹) | 17.3 | 29.8 | 20.4 | -41.9% | -15.2% |
Annualised EPS:₹17.3 × 4 = ₹69.2P/E (based on CMP ₹1,453):~21x
Commentary: The quarter looked like a belt slipping off a pulley — profits took a dive while sales slowed. But Pix still maintained anEBITDA margin of 25%, which many manufacturing companies would kill for. Operating efficiency remains the hero; demand is the villain.
5. Valuation Discussion – Fair Value Range Only (Educational Purpose)
Let’s run through the math like a bored MBA:
a) P/E Method
- Current EPS: ₹70.7
- Industry P/E: 30.6
- Pix P/E: 20.6
- Fair Range = EPS × P/E Range (18x–26x)= ₹70.7 × (18–26) = ₹1,272 – ₹1,838
b) EV/EBITDA Method
- EV = ₹1,922 crore
- EBITDA FY25 = ₹163 crore
- EV/EBITDA = 11.8xIndustry average ~13–15x → Fair EV range = ₹2,120–₹2,450 crore → Fair share price = ₹1,420–₹1,640
c) DCF (Simplified)
- Assuming 10% growth for 5 years, discount rate 12%, terminal growth 3%,the DCF suggests an intrinsic value band of ₹1,350–₹1,700.
🎯 Fair Value Range (Educational Only): ₹1,300–₹1,800 per share.(This range is for educational discussion only and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Pix isn’t a company that screams headlines, but quietly, it’s been doing some spicy stuff:
- Nov 2025:AppointedShekhar Jogwar as GM (Quality)— probably to make sure every belt can survive the next world war.
- Feb 2025:Approved₹30 crore solar power plantcapex — because even belts now want renewable energy sources.
- Mar 2025:CARE Ratings upgraded Pix to A+, a sweet validation that the company’s finances are tighter than their belts.
- FY24–25:Invested₹75 crore in liquid mutual funds, up from ₹5 crore in FY23 — the CFO clearly believes in SIPs.
These moves show the management isn’t sleeping. They’re trimming debt, improving power costs with solar, and parking excess cash wisely.
