Q3 2026 Pennar Industries Ltd Earnings Call Transcript
Key Points
- Revenue increased by 13.3% to INR959.02 crores, indicating strong performance across core business segments.
- PAT grew by 10.14% to INR33.55 crores, with underlying growth potentially reaching 20% excluding one-time costs.
- The PEB division's capacity utilization improved, and inventory reduced by about 4,000 tons, indicating operational efficiency.
- The US subsidiary, Ascent, achieved strong double-digit growth in both revenue and profitability, with an order backlog of $52 million.
- The Boilers division saw a significant increase in order backlog to INR123 crores, driven by strong export orders, setting the stage for robust revenue growth in Q4.
- PAT growth was impacted by one-time costs related to Labour Code implementation and wage agreements, reducing the potential growth rate.
- Working capital days stood at 76, reflecting timing-related impacts from revenue not coming in some segments.
- The PEB India segment faced challenges due to labor issues, which affected growth in the quarter.
- Finance costs increased by INR2.85 crores due to higher working capital utilization and acquisition-related expenses.
- Employee benefit expenses rose by INR17.31 crores, including INR3.6 crores due to one-time costs, impacting overall profitability.
Ladies and gentlemen, good day, and welcome to the Pennar Industries Q3 FY26 earnings conference call hosted by PhillipCapital (India) Private Limited. (Operator Instructions) Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Harshil Shah from PhillipCapital (India) Private Limited. Thank you, and over to you, sir.
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Thank you, Anushka. Good morning, and a very warm welcome to everyone. Thank you for being on the call of Pennar Industries Limited. We are happy to have the management of Pennar Industries here today for the Q&A session with the investment community.
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