Pennar Industries reports strong Q2 FY26 revenue, PAT growth

Pennar Industries Limited announced robust financial results for Q2 FY26, with revenue increasing by 22.04% to Rs. 919.6 crores and Profit After Tax (PAT) growing by 20.13% to Rs. 32.28 crores. The company's Custom Designed Building Solutions (PEB) segment saw a 31.9% revenue increase to Rs. 456.72 crores, driven by capacity additions and growth in India and the US.

Key growth drivers included a strong performance from its US subsidiary, Ascent, which expanded its order backlog to US$51 million, and new orders in the Body in White division from major clients like Hyundai and Stellantis. The Telco acquisition is expected to contribute over Rs. 100 crores annually to revenue. Despite some temporary labor issues and acquisition-related costs impacting Q2 margins, Pennar Industries anticipates a significant improvement in profitability and capital efficiency in Q3 and Q4.

Pennar Industries projects a minimum 20% profitability growth for the coming years and aims for a PBT margin of 7.5% within the next three years. The consolidated order backlog has reached a record high of Rs. 956 crores, with an execution timeline of four to six months. The company's debt-to-equity ratio stands at 0.8, with plans to reduce it.