Annual Report 2025-26

Date : 02.09.2026 Place: Hyderabad BSE Limited The National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, BandraKurla Complex, Bandra East Dalal Street, Fort, Mumbai - 400 001 Mumbai - 400 051 Scrip code: 513228 Scrip Symbol: PENIND Dear Sir/Madam, Sub: Annual Report 2025-26 - Reg. Pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are herewith enclosing the Annual Report 2025-26 of M/s. Pennar Industries Limited. Kindly take the same on record. Thanking You, Yours faithfully, for Pennar Industries Limited Mirza Mohammed Ali Baig Company Secretary & Compliance Officer ACS29058 Corporate Statutory Financial Overview Reports Statements Annual Report FY25-26 Growth by Design ANNUAL REPORT 2025-26 PENNAR INDUSTRIES LIMITED Table of Contents Growth by Design 01 Financial Performance 44 Performance At A Glance 02 Environmental Stewardship 47 Company Profile 04 Governance and the Board 48 Vision, Mission and Values 06 Corporate Information 49 Defining Moments In Our Journey 07 Management Discussion and Analysis 50 From the Chairman's Desk 08 Directors’ Report 59 Message from the Vice Chairman and Managing 10 Report on Corporate Governance 67 Director Business Responsibility & Sustainability Report 106 Review By Executive Director 12 2025-26 The Basis of Our Performance 14 Independent Auditor’s Report 135 Our Value Creation Model 16 Standalone Balance Sheet 146 Strategic Framework and Capital Allocation 18 Standalone Statement of Profit and Loss 147 Capital Allocation Priorities 19 Standalone Statement of Cash Flow 148 Three Structural Shifts 20 Statement of changes in Equity 149 Our Operating Structure 22 Notes forming part of the standalone financial 150 statements Business Vertical Performance 24 Independent Auditor’s Report 205 Order Book and Revenue Visibility 33 Consolidated Balance Sheet 212 End Markets and Applications 34 Consolidated Statement of Profit and Loss 213 The Customers We Serve 36 Consolidated Statement of Cash Flow 214 Global Footprint 37 Consolidated of changes in Equity 215 Principal International Entities 38 Notes forming part of these Consolidated 216 Financial Statements Quality Systems and Certifications 41 Notice 271 Principal Developments of the Year 42 Corporate Statutory Financial Overview Reports Statements Annual Report FY25-26 Growth by Design The financial year 2025-26 was the strongest in the fifty one year history of your Company. Revenue, EBITDA, profit after tax and cash balances each reached their highest recorded levels. The theme of this year’s report reflects our conviction that these outcomes were the product of deliberate design rather than of favourable circumstance. GROWTH BY DESIGN is the measurable outcome. Total denotes causation. The Company’s is the governing discipline. Two tests income of ₹ 3,666.32 crore, EBITDA of performance is attributable to are applied to every business the ₹ 401.32 crore, profit after tax of identifiable decisions: the businesses Company owns and to every business ₹ 138.83 crore and earnings per share selected for priority, the businesses it evaluates. The first is the right to of ₹ 10.29, together with a fourth from which capital has been play, being demonstrable engineering consecutive year of expansion in the withdrawn, the operations selected capability and a customer willing to profit after tax margin. Each of these for automation, the markets entered, pay for it. The second is the right to results follows from portfolio and and the capital committed to each. win, being a defensible position on capital allocation decisions taken over cost, quality, speed or engineering the preceding three to four years. depth relative to the strongest competitor in that market. Capital is allocated only to businesses that satisfy both tests. Businesses that do not are retained for the cash they generate and are permitted to decline as a proportion of the whole. Prioritised businesses accordingly account for approximately 65 to 70 per cent of revenue and grow at rates materially above the Company average. Annual Report FY25-26 Performance At A Glance Total income ₹ 3,666.32 crore. EBITDA ₹ 401.32 crore. Profit after tax ₹ 138.83 crore. A fourth consecutive year of profit after tax margin expansion. Performance Total Income ` in Crore Revenue From Operations ` in Crore FY26 3,666.32 FY26 3,620.09 FY25 3,263.27 FY25 3,226.58 12.35% 12.20% EBITDA ` in Crore Profit Before Tax ` in Crore FY26 401.32 FY26 179.57 FY25 347.44 FY25 158.95 15.51% 12.97% Profit After Tax ` in Crore Earnings Per Share FY26 138.83 FY26 10.29 FY25 119.45 FY25 8.84 16.22% 16.40% Net Worth Total Assets Cash and Bank Balances 1,163.15 3,550.59 269.93 ` Crore ` Crore ` Crore FY25 ₹ 999.60 crore FY25 ₹ 2,954.19 crore FY25 ₹ 189.54 crore Debt to Equity Current Ratio 0.98 1.13 times times FY25 0.78 times FY25 1.14 times Corporate Statutory Financial Overview Reports Statements Annual Report FY25-26 Operating Year During the year, the Company achieved an average productivity improvement of about 10% across its manufacturing facilities and recognised 35 Kaizens. Safety performance remained strong, with 2 million safe man-hours at Pre- Engineered Buildings project sites and 1 million safe man-hours at the Tarapur plant. The Company also delivered 15,689 man-days of training during the year. Quality of Earnings Ebitda Margin % Profit Before Tax Margin % FY26 11.09 FY26 4.96 FY25 10.77 FY25 4.93 Profit After Tax Margin Return On Capital Employed % FY26 3.83 FY26 20.23 FY25 3.70 FY25 21.83 Return On Equity % FY26 11.94 FY25 11.95 Forward visibility at 31 March 2026 810 145 63 ` Crore ` Crore USD million Pre Engineered Buildings India Boilers and process equipment Metal buildings and structural order backlog order backlog steel, United States, combined backlog 34 902.26 ` Crore ` Crore Hydraulics order backlog Order inflows in the closing three months of the year Annual Report FY25-26 Company Profile Established in 1975, Pennar Industries Limited is a diversified engineering and manufacturing enterprise. We design, engineer, fabricate and deliver products, assemblies and complete building systems to customers in infrastructure, mobility, energy and general industry, in India, the United States, Europe and West Asia. We were incorporated in 1975 and we are headquartered in Hyderabad. What began as a single cold rolled steel plant at Isnapur is now a group of fourteen manufacturing facilities across three countries, engineering centres in India and abroad, and holding, engineering and distribution subsidiaries in the United States, Germany and the United Arab Emirates. Our shares are listed on the National Stock Exchange of India and on BSE. Eight Divisions, Two Segments Custom Designed Building Solutions and Auxiliaries contributed revenue of ₹ 1,835.60 crore and a segment Our eight business divisions are Pre Engineered Buildings result of ₹ 178.28 crore. It houses pre engineered buildings in and Structural Units, Precision Tubes, Process Heating, India and metal buildings and structural steel in the United Hydraulics, Engineering Services, Body in White, Steel, and States. Railways. For reporting purposes they sit in two segments. The near equal balance between the two segments, at Diversified Engineering contributed revenue of ₹ 1,871.77 50.5 per cent and 49.5 per cent of revenue, is a deliberate crore in FY26 and a segment result of ₹ 223.04 crore. portfolio choice, and it is a principal reason our earnings It houses precision tubes, steel products and profiles, line has held its trajectory through commodity cycles, tariff industrial components, Body in White, hydraulics, boilers shocks and shifting construction demand. The two halves and process heating, railway products and engineering answer to different demand cycles, so a difficult period in services. one is ordinarily cushioned by the other. FY26 bore this out: neither segment was uniformly strong, yet cons [Showing first 8,000 characters — download PDF for full document]