Pennar Industries Ltd Q2FY26 – The Steel That’s Learning Yoga: Bending, Stretching, and Still Standing Tall at ₹907 Cr Revenue

1. At a Glance

Pennar Industries (NSE: PENIND), the ₹3,724 crore small-cap engineering shapeshifter, just dropped its Q2FY26 results and, boy, the steel doesn’t sleep. With consolidated revenue of ₹919.6 crore and PAT of ₹32.3 crore, this Hyderabad-based precision-engineering player is quietly morphing into a multi-headed hydra of industrial innovation. While the market’s still drooling over electronics manufacturers, Pennar’s bending steel, bolting beams, and building solar dreams with equal flair.

The stock’s been on fire—up 44% in six months, 25% in the last three, and a jaw-dropping 42% YoY. Current price? ₹276. P/E? 28.6x. Dividend? Ha, they’re reinvesting every paisa. ROCE is at 15.9%, respectable for a capital-heavy player. Debt’s at ₹812 crore, but so are ambitions—13 plants, a new PEB facility coming up in Raebareli, and a solar JV with Zetwerk.

So what do you get when a steel company learns digital yoga? Flexibility, balance, and a slight risk of overextension. But right now, Pennar’s got its back straight and numbers better than your gym attendance.

2. Introduction – The Biryani of Engineering Companies

Pennar Industries is like that friend who shows up to a party with 10 different side hustles. You think they make steel, but they’re also into pre-engineered buildings (PEBs), hydraulics, solar mounting solutions, precision tubes, and now—solar panels via a JV. They started as a metals player, but now they’re pitching themselves as a “precision engineering solutions provider.” Translation: they’ll bend, weld, coat, and fabricate anything with a client name and a purchase order attached.

In the last decade, while many small-cap manufacturing firms struggled to move past “GST adjustment phase,” Pennar kept expanding its portfolio, customer base, and capacity footprint. Today, it has 13 manufacturing facilities, exports to the U.S., Europe, and the Middle East, and supplies big boys like L&T, Ultratech Cement, and Reliance Retail.

It’s also got ambitions as sharp as its steel edges—setting up a new PEB plant in Uttar Pradesh and tying up with Zetwerk for a solar venture. Because in 2025, no one wants to just make steel—they want to makegreensteel, preferably with a press release attached.

So yes, Pennar’s not a one-trick pony; it’s a full-blown mechanical orchestra. The only question is whether this orchestra will continue to play in harmony—or hit a dissonant note when debt and diversification collide.

3. Business Model – WTF Do They Even Do?

Let’s be real—Pennar’s business model looks like a buffet menu for engineers.

Segment 1: Diversified Engineering (53% of FY25 Revenue)Think of this as the “everything and the kitchen sink” segment. From railway wagons and solar module mounting structures to industrial boilers, precision tubes, and auto components—if it’s made of metal and needs brains, Pennar probably makes it. Segment revenue grew 14% between FY23 and FY25, driven by solar MMS and industrial fabrication demand.

Segment 2: Custom Designed Building Solutions (47%)Here’s where Pennar’s PEB division shines. These are the fancy steel structures used in warehouses, factories, and airports. They even export to the U.S. and Europe through their overseas subsidiaries. The PEB division has an order book of ₹855 crore (India) and $54 million (U.S.).

Together, these segments let Pennar serve clients across sectors—automotive, infrastructure, renewables, and construction. It’s not a “steel company” anymore—it’s more like an industrial design studio with welding guns instead of whiteboards.

Still, the model’s capital-intensive, and margins are vulnerable to steel price volatility and delayed project execution. But Pennar’s answer to that? Scale up, go global, and build solar modules while you’re at it. Classic desi multitasking.

4. Financials Overview

Consolidated Quarterly Snapshot (₹ in Crores)