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Patil Automation LtdQ1 FY26

Patil Automation Ltd

Q1 FY26 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2
  • FY27 revenue guidance: INR 260-270 crores.
  • Current facilities can support up to INR 300 crores revenue; beyond this, additional facility needed.
  • FY28 revenue target: INR 380-385 crores, requiring new or rented facility expansion.
  • Vision for 2030: Achieve over INR 700 crores revenue as a group.
  • Both key subsidiaries aim to exceed INR 100 crores revenue each within 3-4 years.
  • Repeat business from customers constitutes over 60%, supporting steady volume growth.
  • Data center business is scalable; currently represents 1-2% revenue but poised for significant growth with plans for dedicated facility.
  • Continuous new model introductions and modifications ensure ongoing demand and order additions.
  • Order book around INR 118 crores as of FY26, offering visibility for near-term revenue.
  • Capacity expansions planned within next 4-5 months for future growth beyond FY28.

Margin guidance

Category 2
  • FY27 revenue guidance is INR 260-270 crores with a PAT margin of around 10-11%.
  • FY28 revenue expected to reach INR 380-385 crores; current facility can support up to INR 300 crores without new capex.
  • Additional capacity expansion planned in 4-5 months (rented or new facility) to support the INR 80-85 crores incremental revenue beyond current capacity.
  • Vision for FY30: Group revenue targeting over INR 700 crores.
  • PAT margins expected to sustain above 10%, with slight improvement possible due to scale and operational leverage.
  • Order book stands at INR 118 crores, supporting near-term growth and execution.
  • Demand is strong; the company selectively accepts orders based on margin, payment terms, and delivery timelines to optimize profitability.

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Fundraise plans

Yes
  • Currently, Patil Automation Limited has no long-term debt and is managing working capital through advances and internal funds.
  • The company is open to temporary bank credit (cash credit) for execution support if required but does not foresee a need for additional long-term debt at present.
  • Future additional capital requirements, if any, may be met through bank support or internal accruals; no definite new fundraising plans via debt or equity were disclosed.
  • The company is planning capacity expansions which might necessitate additional funding, but specific details or timelines on fundraising are yet to be finalized.
  • Management will declare details once decisions on new facilities or expansions are finalized.

Order book

Yes
  • Current order book stands at approximately INR 118 crores.
  • Subsidiaries hold an additional order book worth around INR 14 to 18 crores.
  • Total consolidated order book is roughly INR 132 to 136 crores.
  • Major part of this order book is expected to be executed in the financial year 2026-27.
  • Order pipeline or bidding pipeline is about INR 800 crores.
  • Company selectively accepts orders based on margin, payment terms, and delivery timelines.
  • Current capacity supports revenue execution up to INR 260-270 crores in FY27.
  • Plans for expansion to increase capacity aiming for INR 380-385 crores in FY28, requiring additional facilities.

Capex plans

Yes
  • Pending capex of INR 18.5 crores related to mezzanine floor and plant equipment; expected to be spent within 3-4 months.
  • Planning additional facility expansion to support growth beyond INR 300 crores capacity; decision on whether to rent or build new Greenfield facility expected in next 4-5 months.
  • New facility/sheds to take approximately 5 months to become commercially operational once decided.
  • No long-term debt currently planned; working capital needs met via advances, internal funds, and potentially temporary bank support if needed.
  • Vision for FY28 includes revenue of INR 380-385 crores; capacity expansion needed to achieve revenue beyond INR 300 crores under current setup.
  • Design facility has expanded (160-seater) and is adequate; additional focus on improving margins with the Pune design center.
  • Subsidiaries Pentaco Automation and Mii Robotics expected to surpass INR 100 crores revenue each in 3-4 years.

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