PTC Industries opened FY26 with a headline that turns heads: revenue more than doubled, while net profit barely inched up. Announced on 8 August 2025, Q1 FY26 saw consolidated revenue from operations surge 107.28% YoY to ₹97.15 crore (from ₹46.87 crore), but consolidated PAT rose just 5.31% YoY to ₹5.16 crore (from ₹4.90 crore). The standalone book told a very different story: revenue up 11.12% YoY to ₹51.18 crore, while PAT jumped 194.24% YoY to ₹8.18 crore.
That consolidated vs. standalone split is the central theme of this quarter. Below, we unpack the print with clean math, margin bridges, and a practical watchlist so you can judge whether Q1’s shape is a stepping stone to scaling profitability—or a reminder that consolidation brings both opportunities and burdens.
The scorecard at a glance
Consolidated (Q1 FY26 vs Q1 FY25)
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Revenue from operations: ₹97.15 cr vs ₹46.87 cr (+107.28% YoY)
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PBT: ₹19.35 cr vs ₹13.69 cr (+41.34% YoY)
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PAT: ₹5.16 cr vs ₹4.90 cr (+5.31% YoY)
Margins (Consolidated):
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PBT margin: 19.92% (was 29.21%) — down ~928 bps YoY
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PAT margin: 5.31% (was 10.45%) — down ~515 bps YoY
Translation: Revenue and operating profit (PBT) rose sharply, but net margin compressed significantly.
Standalone (Q1 FY26 vs Q1 FY25)
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Revenue from operations: ₹51.18 cr vs ₹46.06 cr (+11.12% YoY)
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PBT: ₹16.49 cr vs ₹10.88 cr (+51.56% YoY)
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PAT: ₹8.18 cr vs ₹2.78 cr (+194.24% YoY)
Margins (Standalone):
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PBT margin: 32.22% (was 23.62%) — up ~860 bps YoY
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PAT margin: 15.98% (was 6.04%) — up ~995 bps YoY
Translation: The parent entity delivered strong margin expansion, translating revenue growth into outsized profit growth.
The puzzle: why consolidated PAT lags standalone PAT
A striking detail: standalone PAT (₹8.18 cr) > consolidated PAT (₹5.16 cr), even though consolidated PBT (₹19.35 cr) is higher than standalone PBT (₹16.49 cr). The math says the burden between PBT and PAT—tax, minority interest, and share of losses of subsidiaries/associates—was heavy at the consolidated level.
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Consolidated “below-PBT” burden:
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Q1 FY26: ₹14.19 cr (19.35 − 5.16) → ~73.3% of PBT
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Q1 FY25: ₹8.79 cr (13.69 − 4.90) → ~64.2% of PBT
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Worsened YoY.
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Standalone “below-PBT” burden:
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Q1 FY26: ₹8.31 cr (16.49 − 8.18) → ~50.4% of PBT
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Q1 FY25: ₹8.10 cr (10.88 − 2.78) → ~74.5% of PBT
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Improved YoY.
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Implication: Subsidiaries/JVs/associates and/or tax/minority lines are dragging the consolidated net, even as the parent is posting leaner, more profitable operations. That divergence explains the quarter in one line.
What changed under the hood: growth vs. profitability
1) Consolidated: growth first, margins second
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Top line doubled; PBT rose ~41%; PAT up ~5%.
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PBT margin fell from 29.21% → 19.92%; PAT margin fell from 10.45% → 5.31%.
This pattern is consistent with a company scaling rapidly through subsidiaries or newly consolidated units that aren’t yet at steady-state margins, or that carry heavier depreciation/interest/tax. Early ramp phases often show high revenue growth with compressed net margins until utilization, mix, and cost curves normalize.
2) Standalone: margin expansion doing the heavy lifting
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Revenue up 11.12%; PBT up 51.56%; PAT up 194.24%.
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PBT margin rose to 32.22%; PAT margin to 15.98%.
This strongly suggests better realizations/mix, input-cost discipline, and cleaner below-the-line effects at the parent. The step-up in standalone profitability is significant—and, if sustained, can serve as the earnings engine while subsidiaries catch up.
A simple bridge: from revenue to PAT
Think of three stacked layers:
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Gross contribution (pricing, mix, input costs): likely improved companywide, given the PBT growth.
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Operating efficiency and overheads: standalone numbers imply tight cost control; consolidated PBT grew but margins slipped—pointing to start-up/ramp costs or different cost structures in subs.
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Below-the-line (finance cost, tax, minority interest, associates): this is where the consolidated book gives back much of the PBT, while standalone benefits from a better effective rate this quarter.
What could be driving the mix (plausible levers)
Without segment disclosure here, we frame the most likely drivers:
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New capacity/ramp costs in subs: Early-phase operations tend to carry higher fixed costs and lower utilization.
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Product/customer mix by entity: The parent may be richer in high-margin lines; certain subsidiaries could be executing lower-margin or scale-up contracts.
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Depreciation/finance costs: Consolidated interest and depreciation can be front-loaded in growth phases.
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Tax structure/minority interest: Subsidiary profitability profiles and shareholding structures can swing the effective consolidated take.
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Aftermarket/services: If more concentrated at the parent, it would boost standalone margins disproportionately.
Share price context (as shared)
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11 Aug 2025 open: ₹14,910.00
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At last update: ₹14,455.00 (below open)
Trailing return profile (as provided):
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1-year: ~+2.16%
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5-year: ~+370.82%
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Max: ~+370.82% (same as 5-year in the provided data)
Takeaway: The stock’s long-run compounding appears strong, but near-term reaction can be two-way as the street parses the consolidated vs. standalone gap. Around such prints, traders should prefer limit orders over market orders to manage slippage.
What to watch next (2–3 quarter checklist)
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Subsidiary utilization and breakeven thresholds
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Are the scaled-up units moving toward steady-state?
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Look for commentary on capacity utilization, learning-curve effects, and order flow specific to subs.
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Consolidated margin bridge
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Management color on gross margin and overheads by entity will help investors gauge how quickly consolidated PBT/PAT margins can revert toward standalone levels.
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Below-the-line clarity
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How much of the consolidated drag is finance cost, depreciation, tax, minority interest, or share of losses of associates?
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Any normalization guidance will be key to modeling FY26–FY27.
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Order book and mix
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Are newer orders higher-value with better realizations?
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Signals on aftermarket/service penetration can point to stickier blended margins.
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Working capital & cash conversion
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Rapid scale-ups often stress receivables and inventory. Watch DSO/inventory days guidance and cash flow from operations.
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Capex cadence and funding
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Clear articulation of remaining capex, debt profile, and expected operating cash generation will frame balance-sheet comfort.
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Risks (pragmatic, not exhaustive)
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Ramp risk in subs: Slower-than-expected utilization or execution snags could prolong margin drag at the consolidated level.
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Input-cost volatility: A sharp upturn in metals or energy prices could pressure gross margins if pass-through lags.
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Customer/concentration risk: A narrow client base or program slippage can dent volumes and pricing power.
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Working-capital stretch: Rapid growth paired with delayed collections can compress free cash flow.
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Currency/regulatory: FX swings and policy changes can affect cost curves and delivery schedules.
Bull vs. Bear narratives
Bull case
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Subsidiaries scale quickly to steady-state margins, narrowing the consolidated-standalone gap.
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Aftermarket/services contribution rises, stabilizing blended profitability.
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Strong order inflow sustains top-line momentum, while the consolidated effective tax/minority burden normalizes.
Bear case
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Consolidated margin drag persists due to prolonged ramp or structural cost differences.
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Input costs firm up while pricing power softens, squeezing spreads.
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Working capital requirements rise, pressuring cash generation and increasing funding costs.
How to read this print as an investor
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Signal, not verdict. Q1 shows the parent is profitable and getting leaner, while the group is scaling but still digesting below-the-line burdens.
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Focus on convergence. The medium-term thesis rests on consolidated margins converging upward as the subsidiaries mature.
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Model with glide paths. Build scenarios that taper consolidated tax/minority/associate drags over the next 2–4 quarters as utilization and mix improve.
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Cash is king. Track operating cash flow and working-capital turns to ensure growth doesn’t outpace cash discipline.
Sticky-note summary (numbers you can keep handy)
Consolidated (Q1 FY26 vs Q1 FY25):
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Revenue: ₹97.15 cr (↑ 107.28%)
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PBT: ₹19.35 cr (↑ 41.34%); PBT margin 19.92% (was 29.21%)
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PAT: ₹5.16 cr (↑ 5.31%); PAT margin 5.31% (was 10.45%)
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Below-PBT burden: ~73.3% of PBT (was ~64.2%)
Standalone (Q1 FY26 vs Q1 FY25):
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Revenue: ₹51.18 cr (↑ 11.12%)
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PBT: ₹16.49 cr (↑ 51.56%); PBT margin 32.22% (was 23.62%)
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PAT: ₹8.18 cr (↑ 194.24%); PAT margin 15.98% (was 6.04%)
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Below-PBT burden: ~50.4% of PBT (was ~74.5%)
Market snapshot (as provided):
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11 Aug 2025 Open: ₹14,910; last traded: ₹14,455
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1Y: ~+2.16% | 5Y: ~+370.82% | Max: ~+370.82%
Final word
PTC Industries’ Q1 FY26 is a story of scale now, convergence later. The consolidated book proves the company can win and execute more work—revenue more than doubled. The standalone book proves the core is profitable and getting more efficient—PAT nearly tripled with strong margin expansion. The task ahead is to close the gap: lift consolidated profitability toward standalone levels by maturing subsidiaries, optimizing mix, and easing the below-the-line drag.
If management can deliver that convergence over the next few quarters—while keeping working capital tidy—Q1 will look like a foundation quarter in a larger earnings build. If not, investors should expect lumpier translation from top line to bottom line as the group continues to scale. Either way, your focus points are clear: subsidiary utilization, consolidated margin bridge, cash conversion, and the glide path of the below-PBT burden.
