Pitti Engineering Ltd

- The company plans to fund the announced CAPEX of INR 150 crores (over 18 months) through a mix of internal accruals and debt. - There is no explicit mention of any new equity fundraising in the provided transcript. - The company remains committed to reducing net debt over time, even with the ongoing inventory-related rise in debt and planned CAPEX. - Earlier plans included repaying about INR 100 crores of debt, but the company may take fresh loans with better cost of funds while repaying existing debt. - The net debt increased to INR 525 crores mainly due to higher inventory and change in export receivables factoring, but a net debt reduction is expected as cash accruals outpace CAPEX over 18 months.

- Board has approved a capital expenditure (CAPEX) of INR 150 crores to be deployed over the next 18 months. - The CAPEX is for brownfield expansion, no new facilities; expansions at existing Bangalore and Aurangabad plants. - Capacity expansions include: - Sheet metal capacity increase from 90,000 to 108,000 metric tons per annum. - Machine hour capacity increase from 648,000 to 720,000 machine hours annually. - Casting capacity increase from 18,600 to 24,600 metric tons. - INR 80 crores of CAPEX is expected to be spent in FY '26 and remaining INR 110 crores in FY '27. - Funding mix will be a combination of internal accruals and debt; company committed to net debt reduction despite CAPEX. - Commercial production has commenced for a new revarnishing line. - CAPEX aims to support 15%+ top-line growth and meet rising demand, with benefits expected progressively in FY '27 and FY '28.

- FY '26 revenue growth guidance maintained at ~15%, targeting INR 1,950 to 2,000 crores. - FY '27 expected to see further growth; previous guidance was INR 2,300 crores at constant raw material prices. - Quarterly lamination volumes projected to increase from 16,000 tons (Q1) to 19,000 tons (Q4), surpassing current optimum capacity utilization. - Casting capacities expanding significantly, with total casting volume around 3,000 tons in Q1. - Brownfield CAPEX of INR 150 crores approved for capacity expansions over 18 months to support growth, with implementation starting Q1 FY '27. - Growth driven by higher-margin segments like traction motors, railway components, renewables, data centers, and mining. - Expected margin improvement and volume growth as raw material supply constraints ease from September onwards. - Exports, including U.S. business, showing robust order visibility despite tariff challenges; Q3 likely to be best export quarter ever.

- Company targets a top-line growth of about 15% for FY '26, aiming to reach around INR 2,000 crores in revenue. - EBITDA margins improved to 16.5% in Q1 FY '26, up 170 basis points YoY; margin growth expected to continue with operating leverage. - Incremental capacity expansions (brownfield CAPEX of INR 150 crores) are expected to support FY '27 sales growth and margin expansion. - EBITDA per ton and operating margins expected to improve as capacity utilization increases to optimal levels by Q4 FY '26. - High-margin segments like traction motors, railway components, renewables, data centers, and mining are driving margin accretion. - FY '27 margins and revenues anticipated to improve progressively post-CAPEX, with higher profit margin casting and machining capacities coming online by FY '28. - Overall, outlook remains optimistic despite geopolitical and tariff uncertainties, backed by strong order visibility and pipeline.

- Robust order visibility and strong pipeline of inquiries reported by Akshay Pitti. - Quarter 2 projection expected to be the best quarter in company's history in terms of volumes. - Export business, including U.S. market, projected to have robust order flow despite the tariff situation. - Continued strong order flows from domestic sectors such as traction motor, renewables, and data centers. - Recent approval and ramp-up of commercial supplies for railway component business signaling increased orders. - CAPEX of INR 150 crores approved to support increased demand and capacity expansion, indicating expected growth in orders. - Quarter 3 export performance expected to be the best ever. - Overall optimistic outlook on sustaining and improving order inflows beyond FY'26.