Pritika Auto Industries Limited (PRITIKAUTO) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Pritika Auto Industries Limited Q4 and FY26 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harpreet Singh Nibbal from Prithika Auto Industries Limited. Thank you, and over to you, sir.

Thank you, ma'am. Very good afternoon, everyone, and welcome to Prithika Auto Industries earnings call for the fourth quarter, and the full year ended March 31, 2026. I would like to begin by expressing my gratitude to you all for taking the time to join us today. I have with me on call today Mr. Narendra Kumar Tyagi, Director of Finance and CFO, and AdFactors PR, our Investor Relations team. We have shared our results and updated the presentation and media release. I hope you all must have received it and gone through the same. I would like to share a brief insight about the company's performance for the year and our strategic outlook going forward. At Preetika Auto Industries, we have established ourselves as a robust and reliable brand specializing in manufacturing of machine caspings and automotive components. With the history dating back to 1974, our journey has been guided by the visionary leadership of Mr. R.S. Neighbor. Over the past five decades, we have grown into a prominent player in our market, supplying high-quality components to leading co-engine equipment manufacturers, primarily catering to tractor and commercial vehicle segments. Our manufacturing facilities at Deerawasi, Pusharpur, Moholy, and Taliwal continue to operate at healthy utilization levels with total consolidated installed capacity in excess of 72,000 metric tons per annum. Production volumes for Q45 financial year 26 stood at 14,193 metric tons, taking the full year F26 volume to 52,620 metric tons, the highest in any single financial year in the company's history. Underscoring the consistent capacity ramp-up and operational throughput improvements we have delivered across the year. Our focus on low-cost mechanization and targeted automation has allowed us to expand effective throughput by approximately 10% annually without disproportionate capital outlay, keeping us agile and cost competitive. The high-weight casting segment known as large castings like gearboxes, transmission cases, refrigeration carriers continues to be the primary driver of our production improvement. High-value products carry better realisation and marginal profiles and we are directing incremental capacity additions in this direction. Our core OEU relationships remain intact with M&M, M&M Saraj, Tafe, Scorce Kibota, Ashok Leland, Case New Holland, and Kion, continuing to anchor our order book. The tractor segment, which is our largest served market, saw healthy retail demand through Financial 26, supported by favorable monsoon, rural income stability, and GST industrialization by the government. Our ability to reliably service large repeat volumes requirements for top-tier OEMs remains our most durable and competitive advantage. On railway diversification, which we have discussed in earlier calls, product development and qualification work continues. Revenue from these segments is not yet material, but we expect initial contributions to begin acquiring in financial year 2027. This vertical remains an important medium and long-term growth lever and we will meaningfully diversify our customer base beyond our traditional automotive OEM universe. I would like to update shareholders on a few corporate developments during the year. In April 2026, our subsidiary Prithika Engineering Components Limited completed the first tranche of an investment in Omnia Engineering, a delivery company entity acquiring 100% stake for USD 50,000. This represents the initial tranche of a board-approved plan to invest up to USD 100,000 in Omnia, which is a newly incorporated company led to commence operations. The strategic intent is to establish a foothold in the U.S. market and to explore engineering sector opportunities over time. This is an early-stage initiative, but it marks the company's first step towards dedicated international market participation. As we enter financial year 2027, the medium-term revenue target of Rs. 600 crore remains our reference point. We believe it is achievable through a combination of volume growth from existing OEM customers, scaling high-value products, and railways begin to contribute meaningfully. The company has outlined strategic capex program for financial year 2027, focused on capacity expansion, product development, and efficiency improvements. Guidance on phasing and quantum will be provided as plans are formed. Our capital allocation philosophy remains unchanged. We will invest with a return justified deployment, and we will not pursue growth at the cost of balance sheet discipline. The macro backdrop remains constructive. Tractor demand fundamentals are intact for financial year 27, with monsoon outlook being a key variable to watch. Government infrastructure and CAPEX spending continue to support CV demand. On the EV front, our self-segment factory and commercial vehicles operate on a materially longer electrification horizon than passenger vehicles, and we do not see any near-term structural disruption to our core business. With that, I would like to hand over the call to Mr. Narendra Kumar Chagiyar, CFO, to share with us the financials for the quarter and year ended. Thank you.

Thank you, Narendra, sir, and good afternoon to everyone. Now coming to our financial performance for the period, for quarter ended, March 31st, 2026, the company reported consolidated revenue from operations over page 138.46 crore, reflecting a year-on-year growth of 36.20%, driven by healthy demand from our key OEM customers and improved production volume. EBITDA for the piotas stood at Rs. 16.64 crore with an EBITDA margin of 12.02%. Profit after tax came in at Rs. 4.77 crore with basic EPS of Rs. 0.26 for the piotas. For the full year, financial year 2026 consolidated revenue stood at rupees 482.95 crores against 356.89 crores in FY25, a growth of 35.32% year-on-year, supported by volume growth and a better product mix. EBITDA was 71.03 crore at a margin of 14.71% and paid for financial aid 2026 was 23.20 crore. We are pleased to note that FY2026 represents our strongest annual revenue performance since listing. Though the first nine months, the company had already demonstrated consistent delivery Nine months FY26 revenue was Rs.344.48 crores, up 34.97% year on year, with EBITDA of Rs.54.39 crores and PAG of Rs.18.43 crores. Q4 has built on this foundation and we enter FY2027 with a healthy order book and stable customer relationship. That's all from our side. We can now open the floor for questions. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions hear from this. We'll take our first question from the line of Udit Sehigal from Pinpoint X Capitals. Please go ahead.

May I please repeat the name?

It is Udit Sehigal.

Udit Sehigal.

Good afternoon, sir. So, what exactly is our installed capacity and what is the maximum utilization we can go up to? Also, our data margins have been falling. So, I mean, what's the reason for that?

Hi. Install capacity is 72,000 metric tons annual, and at present we are doing roughly 73. Maximum we can go up to 80-85%. We can go up to maximum 80-85%. We can go in this.

So we are already doing around 56,000, so there's not much room to, you know, scale it up further.

We are doing roughly 52,000. We are around 73-74%. And we can go up to 80-85%. And we are planning expansion this year. We plan to add around 7,800 tons this year.

Okay. And do you expect this 80-85% utilization to come this year, sir?

Yeah, hopefully. Yeah. If market remains good, whatever the indications are as on date, we should achieve 80-85% this year.

And sir, regarding the EBITDA margins, they were in the 16-17% range. They've come down to 12% this quarter. What's the reason for that?

It is because basically the ROMDIN prices have increased tremendously. And in months of March, because of gas and other things, issues, it just took off.

So are these not like a pass-through? I mean, when we'll be able to...

It is normally done with a gap of one quarter.

Okay. So, from this quarter onwards, we'll revert back to the normal, or we'll take another quarter?

We should revert back, and we should rather improve on that. Because capacity utilization, as the capacity utilization improves, the margins will also improve.

And with respect to this U.S. entity that we are required, sir, what is the thought process, and how do we see that scaling up?

The thought process in this is, what happens is, now, all the major OEs, They have their offices in India operations, they have Indian offices are there. When we contacted them, they said, if you want to deal with the U.S.A. directly, then you need to have a U.S.A. entity. So, for that reason, because the margins over there are much better than what the Indian offices are giving. So, to deal directly with U.S. customers, potential U.S. customers, we are opening entity over there.

So, we will be doing the manufacturing there, or we will be doing the manufacturing here?

First, we will be manufacturing here and take it over there, and then we might, there is a thought process on that also, we might start a manufacturing facility over there.

Okay, sir. Thank you. Thank you.

Next question is from the line of Zuzer Havailibala, an individual investor. Please go ahead.

Havailibala?

Yes.

Hi, sir. Am I audible to you?

Yeah, you're audible.

Yes. So, first of all, thank you for the opportunity. And my first question is, how is the demand shaping up from the key tractor OEMs such as M&M Dev, Xcode, and Swaraz for FF27? And how are you seeing any changes in ordering trends and or customer outlook?

The customer is expecting a low single-digit growth, around 6-8% for this year, because H2 will have very high base. Whatever new products, new projects.

My second question is, what is the plan for the KPEGs for upcoming years, like FI27 and FI28, and how will this investment roadmap support the company's long-term target of achieving one lakh tons of capacity?

See, this year we planned to add approximately 7,800, which will be in H1. That is what we are planning, 700-800 metric tons in foundry, and for that we will need to add machining capacity also, so after this, I mean, so this will take our capacity to roughly 80,000, and then as you know, around two years back, we ventured into a new technology in casting, LSE, so we have got a very positive results in that. And then, next year, financial 28, we will add another 24,000 tons in LFC technology, so that our capacity, our overall, will cross 1 lakh tons.

Okay, this is through LFC technology, right? Yeah.

So, this year it will be by Greensend, 7,800. Next year we will add...

Okay, and are there any plans to increase the content for vehicles through more complex or precision engineering components?

Yeah, yeah, because we, around 30-40 years back when we ventured into the country business in 1997-98, we started with the small, small castings. We have started moving. Competition is less, and valuation is higher.

Okay. And my last question is, what is the current mix between the machine casting and plain casting, and how do you see this evolving over the next few quarters?

We do 100% machine castings. We don't give raw castings. We do 100% machine castings. We don't give raw castings.

Okay. Thank you, sir. That's all from my side, and best of luck for the future.

Thank you.

Thank you. Before we take the next question, we would like to remind participants to ask a question, please press star and 1 on your phone. Next question is from the line of Manas, an individual investor. Please go ahead.

Hello, sir. Good number, good set of numbers. I think we delivered partly on the revenue side, and I think you said the margins is some kind of temporary pressure we went through. So, I just some question on the margin. So, next year onwards, we go back average 15-16 percent, pat level margin 5 percent. Next year, is it a... Yeah, yeah.

We should, we should, if the war doesn't create much more disruption. then we should go back, we should go back.

And in the first quarter itself we will be able to see?

Because of what has happened, everything related to crude, all the chemicals, everything, gases, everything has become caused. So if there is no further disruption, then I think that we should revert back to that.

Because I think, I felt we should have got some operating leverage. The last quarter, the sales growth was too good.

So it should have... It was our highest ever sales growth. Yeah.

So I felt it should have resulted in some operating leverage, but somehow we got stuck up in this.

I mean, raw material increased by around 4-5%, 6%, other expenses, all the gases and manpower costs, everything, labor, contractual labor costs, whatever we were doing, getting... Mm-hmm. For everything, increase the... Correct.

So, now the current run rate, we are expecting similar run rate in line with the last quarter we had 138. The first quarter will also be similar run rate? And similar?

The first quarter will be similar to that.

Similar to that. And margin is 15 to 16%.

Margin would improve, definitely improve.

From here. And one more thing I want to check out, we did around 70 crores of 67, 70 crores KPEG, whatever cash flow we generated, we had put some KPEG. So where is this actually sitting? Is it for the 7,810? Or is it separate?

Some is for Samadon 800 tons, some is for, yeah, and machining, and some is for new product development, and some for railways, whatever, three, four products.

So this year, what will be the capex requirement?

This year, capex will be roughly around 25 to 30 crores.

So for 7800 tons, we require how much? 60 to 70 crores in total?

No, 7800 tons, we require roughly 35 crores.

35 crores. Okay. Okay. Got it. Got it. And one more thing I wanted to check up. For next year onwards, where are we? I think I heard somewhere 600 crores and then 15%.

Yeah, we, next two years, we plan to grow at around 15%. So I think, sir, with 15% growth in next two years, we should touch 600 crores.

So, 600, next two years, okay?

Yeah. So, okay.

So, now, Nick, this year on, it will be around 15% growth.

Yeah.

With better margins.

With better margins. Okay, okay.

Okay. Congratulations, sir. Good set of numbers.

Thank you. Thank you, Manu. Thank you. Yeah, thank you.

Thank you. Next question is from the line of Chaitrika Deshpande, an individual investor. Please go ahead. Hi, sir. Good afternoon.

Good afternoon, man.

Sir, could you please provide an update on the Husharpur land acquisition matter and its current status? Also, does this development impact company's expansion or capital allocation strategy in any way?

Pardon, pardon. I didn't get the second part of the question.

Does this development impact the company's expansion plan or capital allocation strategy in any way?

No, the status of land was that we acquired the land and the... It's from the ARC in the auction by the High Court. But then we found there was some litigation on this. So then we drew ourselves from the auction. So that you know how the auctions go. I mean, they take 10, 15, 20 years. How this litigation goes 10, 15, 20 years. Decent developers have been there. So, we thought it is better to withdraw ourselves from the auction, and this won't impact our immediate plans for next one or two years, yeah. Beyond that, we are looking for land, and we might acquire a fresh land, new land, somewhere near in another two to three months.

All right. And, sir, any refund initiation process?

We have received the refund. Refund has been received. Refund.

Okay, okay, all right.

Thank you so much, sir.

Thank you.

Thank you. Next question is from the line of Akash Sharma, an individual investor. Please go ahead.

Yeah. Hi, sir. Thank you for the opportunity. I have a few questions, sir. First one is that our EBITDA per turn stood at around $13,500, while realizations per turn improved to around $92,000.

Yeah.

So, just wanted to know that which segment or, you know, products are driving this improvement?

Which segment?

Which high-value product segments are driving this improvement?

So, see if you see, we are primarily, general tractor industry has three category of castings. One is small castings, where say 0.25 kg to say 20 kg. Then we get medium castings, which is say 20 to 80 kg. Then above 80 kg is considered large castings. As we move in this segment from small to medium-large, the value decision and the profitability keeps on improving. And we have been consistently moving from small to medium. Now we have started moving from medium to large. Large, we said one day with large is one more that number of players in India is very less for large castings. Only 8 or 10 players are there who produce large castings in India. So there is a slightly niche market, difficult market, and competition is less. So we are moving in that direction. That will improve our budget and everything.

Okay, sir. And have we gained any market share with any major OEM?

We have gained market share with almost all our customers. The market has grown by 16-17%. We have grown by 34%.

Okay. Okay, sir. And what is the, I mean, approximate revenue contribution from our top three customers?

From? Top three customers?

Top three customers, yeah.

Top three customers would be roughly 50%, 55%, 55%.

Okay, sir, and is this going to change post, you know, we are shifting from medium casting to large casting?

No, no, no, this will not change because they are primarily the same customers with which we are, we are moving ahead with same customers only, and we are increasing our share of business with existing customers. Because, you see, our top three customers are M&M, Saraj, Tafe, Escorts. And these are our major customers, and these are top three, four tractor manufacturers in India. So they control almost 60-70% of the market share, and we are majority growing with them only.

Okay, okay. And so my last question is that are we preparing for some EV-related opportunities or that's out of picture right now?

No, no, EV also, I mean, as of now, if we see tractors or other EV, everybody is developing, and we are also developing components for them also. But as of now, there is, we don't see any major EV platforms coming in tractor for next two, three, or five years. And we did... I mean, it's a very small, in a very small way, all the companies are working on it, but not in a big, big way.

Okay. Got it, sir. That helps. Thank you so much.

Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. Next question is from the line of Yash Parker, an individual investor.

Tom, please repeat the name.

Yash Parker.

Hello, am I audible?

No, you are audible.

Thank you so much for the opportunity and congratulations on a good set of numbers. So, you mentioned that the rising cost was nearly 4 to 5%. And we also saw that there was a lot of increase in the steep prices and power and energy cost in the last quarter. So, how do we see the cost environment evolving going forward for 527?

Thank you, Ross. That I told earlier, if there is no major disruption because of war, then I think the cost should stabilize. Only thing is now, with the call, So, that will have some... They do power pump, and maybe with a delay.

Okay, sir. Another question would be, sir, regarding the EBITDA and Realization, they have improved wider a lot in this year. So is this because of some value-added products that has contributed to such a good improvement? Also, sir, what would be the comfortable leverage range for our business over the medium term? Right now, I guess the net debt to equity is somewhere 0.65 or something. So, how comfortable is the management on debt part?

On the debt part, as well as debt equity is concerned, we are pretty sitting on a comfortable position. We will keep it below 1 in any regard.

Okay, sir. And also, sir, regarding the future opportunities. So, you have mentioned that infrastructure spending, the commercial vehicle demand increase, and even the vehicle scrappage policies are going to be a growth driver for us. So, out of which, which segments or applications do you feel would drive major growth for us?

See, as of now, we see major growth in factors. CVs, because of a lot of regulation, disruption has been going up and down. CV has been more volatile than tractors over the last five, seven years. So we see a major growth in tractors because all the governments have a lot of focus on rural income. Rural income, everybody, I mean, right from center to state governments. They want rural incomes to grow, rural people, and you know how the election machinery has become now. So, the government has a lot of focus on rural economy, and we see for the next four or five years good growth in tractors. There may be a year or a year and a half of a dip, but on a long-term basis we see a good growth in tractors.

So, last question, you also mentioned that we will be starting with production in the US. So, could you quantify what can we expect as in the margin difference between India operations and US operations, please?

I mean, what we have studied till now is that if we work at 14-15 EBITDA margins, and if we… Do a major, like manufacturing over there means not full product manufacturing, only a part manufacturing or a finishing part, part of, kind of thing that. Finishing operations, like something like that only. So we expect that margin, minimum, say, EBITDA margins of 18 to 20 percent.

Oh, that's great. Last question from my side, sir. You mentioned that a tractor so far is not being adopted for EV. But how about commercial vehicles and off-highway equipment segments? Like, are they adopting the EV thing now?

No, no. Heavy commercials may, there is. Thank you.

Thank you for taking my question, sir.

I have a few questions regarding the KPEX details which we have shared. Regarding 80,000. 80,000 metric tons of capacity you plan to achieve this year, whereas you are adding 8,000 metric tons. Plus, next year you plan to increase it to 24,000 tons. So, what kind of investment you plan to do this year and next year, if you can share some data, and how will it be funded?

This year it will be, we are planning to invest around 25 to 30 crores. And next year when we go for a bigger project, that time we are looking at an investment of say around 60 to 70 crores. And that we will try to fund it by a combination of debt and equity. This year it will be by debt only. And next year it will be by debt and equity.

Okay, okay, because debt is quite, has increased, quite meaningful to, you know, this year around 190 plus crores.

180, yeah, this year is 180, yeah.

And our interest cost is also around 22 crores, so that will add extra burden to you.

Yeah, we will, next, this year we will do by... Next year by combination of debt and equity or maybe we will see what kind of equity we are able to raise.

2,400 tons will be only through LFP, right, if I'm not wrong?

Pardon?

The increase in the capacity is for the LFP products, right?

That would be LFP.

So, after this increase, what will be the share of capacity between the normal, conventional casting and the LFP?

After next year, it will be around, say, 70-30.

Sorry, sir, you're sounding a little distant. Can you come closer to the mic, please?

Yeah, it will be 70-30. Next year, it will be 70-30. Okay, 70-30. Yeah, when we add this 2,400 tons. So it will be roughly 70, 30, 65, 35, anything between it is between 70, 30 and 65, 35.

Okay. Sir, what is the current share of business or the share of revenue between the convention and the LFP currently?

Currently, LFP is roughly, say, 15%.

Okay. And we were planning to add certain more customers in the LFP. It was few of the reasons we were testing our products.

So, where are we are in the discussion? Last year, we added one customer. Thank you very much. The consignment is going this way. Beyond the Indian customers, we have already started the foreign supply.

So, in terms of your order book which you have currently, so what is the proportion of LFT products?

As of now?

Yes.

Order book if we say... LFC is almost 20%, order book what we have.

Okay, okay. What is the size of order book currently? What is the overall size of the order book currently?

Order book is, we are fully booked. All seven years, rather we are overbooked as of now. What demand is being generated by customers, we are overbooked on that.

Okay, so it will be over like five, six hundred odd crores of order book currently we have?

Yes, yes, yes, easily.

Okay. And, sir, what is the margin profile of LXP generally in Visage?

Generally, it is, say, percent or two percent, one or two percent higher than the normal one.

Okay, okay. And sir, what is the like-to-like basis in terms of capex between the LFT and the conventional in terms of per-turn basis? Does the LFT, capex are far lower than?

Yes, for a, if we say, for a green field project, not a brown, I'm talking a green field project, like for the categories where LSE is used. LSC is used basically in large castings, which have a high core part. So their minimum capacity created is 3,000 tons. For that minimum, you need 120 to 150 crores, depending on the land and automation you add to that. Whereas, same 3,000 tons in LSC, you can put in 75 crores. It's almost 50%.

Okay. Thank you. Yeah, hello.

You're through. Are you asking questions?

No, just one more last question. Just do, you know, share some details on how the funding would be there for the next leg of KPEX. That will have some clarity on, you know.

Please, for next leg, I told you it will be a combination of debt and equity.

Okay. Thank you.

We will raise some equity and debt also. I mean, it depends. I mean, we will prefer if we can do it fully with equity and as much as equity as possible and less of debt.

Thank you so much, and all the best.

Thank you. Thank you, Vishal. Thank you.

Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. Next question is from the line of Marnas, an individual investor. Please go ahead.

Yeah, sir, just had some follow-up questions. So, I just want to understand, are we doing some XWorks model or is it like we take a, so some companies, they have XWorks model. Some companies, because then they don't, they're not bothered about their, these pass-on costs. Are we looking to move to a transform to XWorks model?

Okay. The diesel component, the freight component, which you are considering is not only on X works also, on the delivery. It is also... So that is how it impacts. Incoming ROM deals also become costly, because the freight part increases.

So now how do we feel? Still the prices are there. Now in the upcoming quarters, we feel that the margins will be better. So on what basis do we feel that we will be able to come back to the margin?

Because other than the freight part, most of the ROM deals will be passed on by the customer in this quarter, whatever increase was last quarter, it will be passed on. So, only freight component, because the diesel started increasing this month only. So, that we have to see with our customers how we go about that. What is the full term? Still, it is not closed. I mean, every day it is increasing. So, once that stabilizes the diesel, then we will start discussing it. Okay.

So, you are saying majority part will be passed. So, it's like quarterly, you are passing on monthly now, at this point, how is it, are we able to, how are we doing it at this moment?

See, at this moment, it is different. For some customers, it is quarterly only. For some, it is, we have moved to monthly. We are moving to monthly. It is under discussion.

Okay. So, and the second question was, I really, I see in the last two quarters, I just, the last two years, I have been noticing March onwards, our margin dips. Maybe by 2% or something. I've seen for last two years. And again, this year also we had a hit. Obviously, there is some element of raw material cost. But also, I think the press release you hinted for the product mix. So my question was, how much of element of this is the product mix? Is March quarter where a particular customer we are serving, where we have less margin? Because last two quarters, last two years, I've noticed the March quarter, the margins are down 2%.

Normally, what happens is... At the end of year, the rom-bril process starts going up. So that is one part. Or maybe in one last year was that it was lower. It depends on various factors, raw material prices, capacity utilization, and then...

No, on similar turnover also, we had suddenly the margins took a decrease, like 16, 16, 16, then suddenly...

So, I mean raw material prices, products made, sometimes the products which are old products, where the value addition is less. The manufacturers have now a lot of product mixes there. Different types of products are there.

But since we are fully doing machined components, the margin profile should be very similar. It should be like your base, your product mix should be very, very...

What happens is the components which we are settled which are, say, we call legacy components. So there the margins have over the years reduced. But in new components, the margins are better than the old ones. So that is one of the reasons.

Any idea, you know, percentage, any idea, just, I mean, just to understand, like, any percentage means legacy versus the new components, at least you have some idea over that, any idea, any numbers you have to,

as of now, we say, almost, it will be a ratio of 60-40, 60 would be legacy, 40 would be new. So, legacy companies take a long time to...

And it might be with the particular customer as well.

Yeah, yeah, particular customers also.

Yeah, and so, and the last question, I think a little bit, I understood the structure, Metacasting is there, Prithika Auto also does the machining, so Prithika Engineering and Metacasting is there. I just wanted to understand, is Prithika Engineering and Metacasting give the job back again to Prithika Auto to do some machining, or it's built from entire three different entities to the final customer?

Some products they give raw casting and Prithika Auto does the machining. Some they do the machining and just build it to Prithika Auto.

So, the billing is happening from both the ends, Prithika Engineering and Prithika Auto. Earlier, I studied that earlier, it was like different, so I just wanted to understand that.

No, no, no. Billing is done by both the ends.

Okay. So, sometimes the caching comes from Prithika Engineering and goes to Prithika Auto also.

Yeah, goes to Prithika Auto, machines it. Sometimes Prithika Engineering does the machining and does it to Prithika Auto.

Okay. So, both ways it happens.

That is both ways it happens.

But is there any, like, is there because of operation reason, it's like this, or, like...

Yeah, operation reason, we try, where, where, like, Prithik Auto is more into small and medium castings. And Prithik Engineering is into medium and large castings. So, sometimes the medium castings go to Prithik Auto and they're machined over there.

So the margin discovery happens then at the Pritik Auto then? Because then you bill it there, then the margin discovery happens there. Am I right?

Yeah, yeah, you're right.

And so the last question, I remember you told now next year, see we are generating 70 crores cash this year. If I assume next year also you generate 70 crores cash and 25, 30 crores, 30 crores you want to do some capex and remaining 40 crores will end up going in some interest cost and 20 crores you might repay some debt. I don't know. I'm just going to guess. And that might come down to 170-odd crores. Then, the next year, following that, you want to do 70 crores CAPEX. Assume you will also generate similar cash flow, 50 to 70 crores. So, is there a real need for debt? And, I mean, is there like some, like, you might need some debt, but I don't think the debt component should go up disproportionately.

Yeah, I mean, we'll see the cash flow and how we are placed. Then, I mean, take a follow-up.

But I'm assuming this cash flow trend will continue in the...

It should continue. Okay, sir.

Thank you so much. Thank you so much.

Thank you. Next question is from the line of Rohit Mehra from SK Securities. Please go ahead.

Thank you for the opportunity. I joined late. Maybe I'll be repetitive. I just wanted to know, so margins were gradually increasing from FI 22 to FI 25, and this year we saw a decline in EBITDA margins. So, may I know the rationale behind that?

Basically, it has been in Q4, and it was because of the increase in rom-gel prices, and then disruption due to war in March, because in gas and other things, there was a lot of disruption was there, in whatever the chemicals, crude related products were there, there was a lot of disruption in that, because of that.

Okay, so is it fair to assume that we will maintain the margins around 15-16% going forward?

Yes, yes, in coming year, this year, and if there is no further disruptions due to war, we should reach back to our...

Got it. Also, the company has invested in lost film casting technology from Meeta Casting, obviously. So, could you elaborate on the strategic advantage of this technology and expected business contribution going forward?

See, at present, business contribution is around, say, 10%, 10 to 15%, because this is a new technology, and it has taken... Some time to establish it at our end and at the customer end, but now it has been fully established, and we are ramping up our production. The basic advantage of this casting is that, if you see, this is primarily used for large casting, or with the casting, the core work is very high. The core content is high. For that kind of a product line, whatever investment required is minimum is 120 to 150 crores. But with LFC, we can produce same product with same quality with almost 50% investment and in the smaller blocks. So that is a 3,000. Here we can start with 500 tons, 1,000 tons, 1,500 tons. That way we can create the capacities. So it is much easier with lesser capex you can start this technology. And then you get the same quality, same product and slightly better margins in this.

Got it. So going forward, is it fair to assume that this percentage that you told me that right now it is 10% will go upwards to 2025 or maybe more?

Yeah. That is a long-term opportunity to take this to 30% in the next three years.

Got it, sir. Okay. And apart from the U.S. market, are there any new export customers or geographies currently under display?

Sir, we have recently started exporting to South Korea also. We have sent one lot and one lot more. And we are exploring Europe also.

Okay, so how are we competing in this market compared to the Chinese and European founders?

So, whatever advantage they had because of low-cost manufacturing, because of labor costs and other power costs, now they don't have that advantage. Only advantage they have now over and above is, number one is the financial cost, and number two is productivity-wise. Otherwise, their labor cost is higher than us, their power cost is higher than us. So, India as of now is... India can compete very easily with China, which was not possible, say, 10 years back or 15 years back.

Got it. Got it, sir. Thank you. That's answered my question. Thank you and all the best.

Thank you.

Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Harpreet Singh Nibbal from Pritika Auto Industries Limited for closing comments. Over to you, sir.

In closing, I want to acknowledge the sustained effort of our teams across manufacturing, quality, and supply chain. Financial year 2026 performance has been delivered through disciplined execution. I also thank our customers for their continued partnership and our investors for their engagement. I would also like to say that our company, we are on route to fulfill our vision of 1 lakh tons. We are very aggressively following our vision, and we plan to grow by 15% for next two to three years, and we will be continuously adding capacities. We will be focusing on exports so that our margins can improve. And second would be railways. Again, we are very aggressively working on two, three products. And we hope that another two, three years. So that will also give us a good revenue and bottom line. So financial fundraising has validated the operating model we have built, consistent revenue growth, improving product mix and broadening strategy agenda. We will carry that forward in coming years also. Thank you, everyone. Thank you for your time. Thank you. Have a good day.

Thank you. On behalf of Prithika Auto Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your mind.