Pritika Auto puts ₹60-70 cr down for a major Lost Foam Casting build in FY28
The auto-ancillary maker is phasing its expansion: a smaller Green Sand addition this year, a major Lost Foam Casting line next. Management guided for 15% FY27 revenue growth.
— 2 earlier stories on Pritika Auto Industries Ltd. →What's new
- Pritika Auto detailed a two-phase capex plan: ₹25-30 cr now, ₹60-70 cr next year.
- Management guided for 15% FY27 revenue growth and a margin recovery to 15-16% EBITDA.
- The call outlined a US subsidiary, South Korean exports, and railway component development.
Why this matters
The phasing is the story. This isn't one big bet; it's a sequenced commitment. The 15-16% EBITDA margin target, however, rests on a single variable: raw material pass-through. That's a plan, not a result.
What we're watching
- The ₹25-30 cr Green Sand build completing on time in H1 FY27.
- First order or revenue confirmation from the US subsidiary.
- Whether the railway segment delivers 'meaningful revenue' as guided.
The full read
Pritika Auto is committing capital in two clear phases. First, ₹25-30 crore for 7,800 tonnes of Green Sand capacity by mid-FY27. Then, a much larger ₹60-70 crore for a 24,000-tonne Lost Foam Casting line in FY28. Management guided for 15% revenue growth this year. The margin recovery to 15-16% EBITDA is the hinge. It's a projection tied to cost pass-through. Hard numbers for the US subsidiary, South Korean exports, and railway components didn't materialise on the call. The transcript itself adds little beyond the concall summary, but it crystallises the capex timeline. This is a company putting money down for the next two years.
Questions answered
- What is the total capex commitment across both phases?
- The company plans to spend ₹25-30 crore on a 7,800-tonne Green Sand expansion in H1 FY27, followed by ₹60-70 crore for a 24,000-tonne Lost Foam Casting line in FY28.
- Why is the margin recovery forecast contingent on raw materials?
- Management guided for 15-16% EBITDA margins, stating the recovery depends on passing through higher raw material costs to customers. The mechanism is in place, but the margin improvement hasn't occurred yet.
- What details were given on the US subsidiary?
- The call confirmed a US-based subsidiary is part of the market strategy and that exports to South Korea are underway. No specifics on subsidiary name, size, or order book were provided.
- How significant is the railway component business?
- Management stated it is still in development and will deliver its 'first meaningful revenue' in FY27. No rupee figure was given for the projection.
Pritika Auto Industries Ltd.
Latest quarter · Mar 2026
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All notes on PRITIKAUTO →- 30 May 2026 · 3:19 PM IST Pritika Auto puts ₹60-70 cr down for a major Lost Foam Casting build in FY28
- 47d ago Pritika Auto cuts margin outlook for new casting technology
- 49d ago Pritika Auto’s 36% revenue jump gets eaten by raw material costs