01 — At a Glance
The Company That Makes Things Spin So Your Appliances Don’t Explode
- 52-Week High / Low₹1,122 / ₹675
- Q3 FY26 Revenue₹477 Cr
- Q3 FY26 PAT₹28.2 Cr
- TTM EPS₹33.82
- Annualised EPS (Q3 Avg × 4)₹33.54
- Book Value / Share₹250
- Price to Book3.11x
- Order Book (Q2 FY25)₹800 Cr
- 3-Year Stock CAGR41%
- Sales Growth (TTM)+20%
Flash Summary: Pitti Engineering just delivered Q3 FY26 revenue of ₹477 crore and PAT of ₹28.2 crore, with 17% EBITDA margins holding steady. The stock is at ₹776, up 41% over 3 years. But here’s where it gets interesting—they’ve gone full acquisition mode (Dakshin Foundry, PIPL), merged subsidiaries via NCLT, raised ₹360 crore equity through QIP, upgraded their credit rating to IND AA-, and are now guiding for ₹1,950 crore FY26 revenue (midpoint). They’re either genius strategists or running the world’s most organized chaos.
02 — Introduction
Laminations: The Unsexy Business That Powers Everything You Love
Let’s start with what makes Pitti Engineering tick: electrical steel laminations. Not the most glamorous product name, but here’s the reality—every motor, every generator, every transformer that runs your ceiling fan, your washing machine, your EV’s heart, or a data center’s cooling system? Contains Pitti’s laminations. They’re the core reason electric machines work efficiently instead of melting like a laptop in a Delhi summer.
Pitti is India’s largest manufacturer and exporter of electrical laminations. They have two factories: one in Hyderabad (Telangana) and one in Aurangabad (Maharashtra). They serve customers like ABB, Siemens, Cummins, Wabtec, General Electric, and basically anyone who builds motors or generators and actually cares about efficiency. The company’s business model is refreshingly simple: buy steel coils, laminate and machine them, sell to OEMs at reasonable margins, pocket the spread.
What changed in FY25-26? Everything. In May 2024, they acquired Bagadia Chaitra Industries (PIPL). In July 2024, they acquired Dakshin Foundry. In October 2024, NCLT approved the amalgamation of two wholly-owned subsidiaries. In July 2024, they raised ₹360 crore through QIP. In January 2025, India Ratings upgraded them to IND AA-. In February 2026, management announced FY26 revenue guidance of ₹1,900–2,000 crore. This is not a company in cruise control—it’s a company in turbo mode.
Concall Clarity (Feb 2026): Management positioned recent quarters as “laying the groundwork for the next phase of growth” via mix upgrade (more machine components and integrated assemblies) and disciplined capex. Working-capital normalization is the key near-term catalyst—inventory built due to BIS availability risk is expected to unwind. Translation: they overbought steel to avoid supply chain chaos. Now they’re selling it down. This should mean lower finance costs and better cash generation going forward.
03 — Business Model: So What Actually Happens In A Lamination Factory?
Steal Coils + Expensive Machines + Smart People = Margin Magic
Here’s the production flow: Pitti buys electrical steel coils (BIS certified stuff that governments and global customers mandate). They run these through precision lamination equipment that stamps out thin, stacked sheets—this is critical because stacking reduces energy loss in rotating equipment. They also machine components, do die-cast work (recently acquired), and even cast parts. Then they sell.
The segment mix (Q3 FY26): Traction Motors & Railway Components (31.9%), Power Generation (14.4%), Industrial & Commercial (13.9%), Data Centers (3.7%, up from 2.7% prior quarter). The diversification matters because if railways slow, they have power plants. If power slows, they have data centers. If data centers slow, well… India is probably collapsing. Then we have bigger problems than Pitti’s P&L.
Their strategy is openly stated: shift from loose laminations (low-margin commodity stuff) to integrated assemblies and machined components (high-margin, customer-stickier products). Loose laminations? Boring. But a fully assembled stator frame with integrated dies ready for winding? That’s where the money is, and that’s where Pitti is investing capital and integration effort.
Domestic Sales72%9M FY26 mix
Export Sales28%growing steadily
EBITDA Margin17%medium-term target
Installed Capacity82,000 MTsheet metal
Fun fact from the Feb 2026 concall: Data center business is the “particularly encouraging momentum” pocket. Why? Cummins Generator Technologies—their key data center customer—runs DG sets for cooling and backup power. Pitti supplies stators and rotors. And here’s the kicker: Pitti claims “about 90%-plus market share in this product with them.” At 150 units/month and ₹4.5-5.0 lakh per unit, that’s ₹100-120 crore potential per year. And they’re expecting 25-30% growth in this segment over 12-18 months. That’s not a rounding error. That’s a growth engine.
04 — Financials Overview
Q3 FY26: Revenue Up, Profit Flat, But Don’t Panic Yet
Result type: Quarterly Results | Q3 FY26 EPS: ₹7.49 | Avg Q1–Q3 EPS: (₹6.08+₹10.65+₹7.49)/3 = ₹8.07 | Annualised EPS: ₹32.28
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 477 | 415 | 478 | +14.9% | -0.2% |
| Operating Profit | 81 | 67 | 78 | +20.9% | +3.8% |
| OPM % | 17% | 16% | 16% | +100 bps | +100 bps |
| PAT | 28.2 | 28.8 | 40.0 | -1.88% | -29.5% |
| EPS (₹) | 7.49 | 7.64 | 10.65 | -1.96% | -29.6% |
The Real Story: Revenue is up 14.9% YoY. Operating profit is up 20.9% YoY. OPM expanded 100 bps to 17%. But PAT is flat and EPS is down on a QoQ basis. Why? Because of finance costs. Management said on the concall that higher finance costs were linked to elevated inventory maintained due to “availability of BIS certified steel from import sources.” They’re buying now, selling down later. Which means next quarter should look prettier. Also, on a 9M basis, they’re up 13.9% revenue and +26.6% EBITDA. So the “PAT down” story is a Q3 artifact, not a trend.
💬 Pitti is sitting on elevated inventory they’re working down, and they’ve got ₹150 crore capex approved that will start spewing depreciation. Are they setting themselves up for a margin cliff, or is the operational leverage from scale going to make this look genius in 2 years?
05 — Valuation Discussion – Fair Value Range
Paying 23x P/E for a 17% ROE Company. Is That Okay or Are We Nuts?
