Order Backlog - PEBB India
₹810 Cr
+8% QoQ
Order backlog for PEBB India stood at ₹810 crore as of Q3 end, up from ~₹780 crore in Q2.
PENNAR
Other
10 Feb 2026
Pennar Industries Limited — Q3 FY26
Pennar Industries reported Q3 FY26 revenue of ₹959 crore (+13.3% YoY) and PAT of ₹33.6 crore (+10.1% YoY), impacted by ~₹4 crore one-time labor costs.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Pennar Industries reported Q3 FY26 revenue of ₹959 crore (+13.3% YoY) and PAT of ₹33.6 crore (+10.1% YoY), impacted by ~₹4 crore one-time labor costs. Excluding these, PAT growth would have been ~20%. Diversified engineering grew 25% driven by steel, boilers, and BW. The PEBB segment was flat due to labor issues in India and delayed Telco acquisition ramp-up, but management expects strong Q4 with order backlog of ₹810 crore in India and $62 million in the US. Boilers order backlog surged to ₹123 crore. Management reiterated double-digit PAT growth target of 20% for FY26. Key risk: execution consistency in PEBB after repeated labor setbacks.
Key Numbers
Order Backlog - US Buildings
$52M
+30% YoY
US buildings order backlog at $52 million, with Telco adding $10 million, total $62 million.
Order Backlog - Boilers
₹123 Cr
+50% QoQ
Boilers division order backlog increased to ₹123 crore, driven by export orders from Australia and Sri Lanka.
Capacity Utilization - Overall
70%
Flat QoQ
Overall capacity utilization at 70%, with PEBB India expected to improve above 70% in Q4.
Management Guidance
Double-digit PAT growth of 20% for FY26
Management reaffirmed commitment to 20% PAT growth for the full year, excluding one-time costs.
Management guidance growthPEBB India revenue to grow strongly in Q4
With labor issues resolved, PEBB India monthly run-rate is expected to be north of 20% higher than Q3 average.
Management guidance revenueLong-term PAT margin target of 7% in 2-3 years
Management guided to sustainable PAT margin of 7% over the next 2-3 years, up from current ~4%.
Management guidance marginsTelco acquisition to contribute substantially in Q4
Telco structural acquisition started booking orders and will meaningfully contribute to revenue from Q4 onwards.
Management guidance revenueKey Risks
Execution risk in PEBB after repeated labor issues
PEBB India has underperformed for multiple quarters due to labor problems; despite resolution, consistency remains a concern.
high · analyst_questionOne-time cost recurrence
₹4 crore one-time labor costs impacted PAT; management claims these are non-recurring, but similar provisions could arise.
medium · management_commentarySteel price volatility impact on margins
While steel costs are largely pass-through, rapid price changes could compress margins if pass-through lags.
medium · data_observationUS tariff policy uncertainty
Changes in US sectoral tariffs could affect hydraulics and PEBB exports; management expects minimal impact but remains cautious.
low · analyst_questionNotable Quotes
We are quite confident of achieving and growing our revenue and profit growth targets and we are quite confident of committing to you as we have before that we expect our profit growth for the year for the following quarters to be double digit and north of 20%.
The 780 cr number is order bookings for that quarter. It doesn't represent the situation as it is right now. As it stands right now we well over 800 crores in the PB India order backlog as well.
We have solved the labor problem. We've solved it late last quarter. The positive impact from that would not have been seen in the full quarter. However, in this entire quarter, you will see much higher levels of revenue in PB India this quarter compared to last quarter.
Frequently Asked Questions
What was Pennar Industries's revenue in Q3 FY26?
Pennar Industries reported revenue of ₹943 Cr in Q3 FY26, representing a +13.3% change compared to the same quarter last year.
What guidance did Pennar Industries management give for FY27?
Double-digit PAT growth of 20% for FY26: Management reaffirmed commitment to 20% PAT growth for the full year, excluding one-time costs. PEBB India revenue to grow strongly in Q4: With labor issues resolved, PEBB India monthly run-rate is expected to be north of 20% higher than Q3 average. Long-term PAT margin target of 7% in 2-3 years: Management guided to sustainable PAT margin of 7% over the next 2-3 years, up from current ~4%. Telco acquisition to contribute substantially in Q4: Telco structural acquisition started booking orders and will meaningfully contribute to revenue from Q4 onwards.
What are the key risks for Pennar Industries in FY27?
Key risks include Execution risk in PEBB after repeated labor issues — PEBB India has underperformed for multiple quarters due to labor problems; despite resolution, consistency remains a concern.; One-time cost recurrence — ₹4 crore one-time labor costs impacted PAT; management claims these are non-recurring, but similar provisions could arise.; Steel price volatility impact on margins — While steel costs are largely pass-through, rapid price changes could compress margins if pass-through lags.; US tariff policy uncertainty — Changes in US sectoral tariffs could affect hydraulics and PEBB exports; management expects minimal impact but remains cautious..
Did Pennar Industries meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Pennar Industries Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.