Pritika Auto Industries · risk themes across the available quarters.
Bear-case history
Raw material prices increased 4-6% in March 2026 due to gas and chemical cost surge. While costs are normally passed through with a quarterly lag, this creates near-term margin pressure before full recovery.
Diesel prices have been increasing steadily, impacting both inbound raw material costs and outbound delivery expenses. Unlike raw materials, freight costs require separate customer negotiations for pass-through.
Legacy products with lower value addition constitute ~60% of current product mix. These legacy components experience margin erosion over time but take years to phase out as tractor models have long lifecycle.
Top three customers (Eminem, Escorts, TAFE) contribute 50-55% of revenue. While management sees this as stable, any loss of major customer or slowdown in tractor OEM demand could disproportionately impact results.