Pix Transmissions Ltd: On a Tighter Belt?
Navigating Through Growth, Governance, and Market Jitters
Pix Transmissions Ltd is a recognized name in India’s mechanical power transmission industry, has long exemplified operational excellence and a strong global export presence. Established in 1981 and headquartered in Mumbai, the company specializes in manufacturing Belts and related mechanical Power Transmission products in India. It operates advanced automated production facilities in Nagpur and maintains a robust global footprint with over 250 distributors across more than 100 countries. Its international presence is further reinforced by subsidiaries in Europe, the UAE, and Germany. However, as market dynamics evolve and quarterly results reveal growing volatility, a fresh evaluation of the company’s fundamentals is warranted.
The key question now is whether Pix can sustain its historical strength or if it's beginning to lose its grip amid rising operational and financial concerns.
📈 Financial Performance & Outlook
Pix have demonstrated consistent revenue growth and strong operating margins over the last five years. However, recent quarterly trends show signs of volatility, demanding a more cautious stance from investors.
📊 5-Year Financial Comparison (Figs in Crores)
Metric FY21 FY22 FY23 FY24 FY25
Sales 380 449 486 493 589
Operating Profit 113 115 105 120 162
Net Profit 65 69 65 83 113
OPM (%) 30 26 22 24 28
CFO 58 55 112 137 108
EPS 47.63 50.52 47.57 60.91 82.85
ROCE (%) 26.70
📊 Quarterly Performance – FY 2025–26
🔹 Q1 FY26 (Apr–Jun 2025)
Revenue: ₹128.95 crore and Net Profit: ₹27.45 crore
🔹 Q2 FY26 (Jul–Sep 2025)
Revenue: ₹159.06 crore and Net Profit: ₹40.53 crore
🔹 Q3 FY26 (Oct–Dec 2025)
Revenue: ₹139.52 crore and Net Profit: ₹22.25 crore
There is no change in Promotors Shareholding from Mar 2024 to Mar 2025 which stands at 61.82% and no pledged of shares indicates stability and long-term commitment.
🔍 Key Highlights
✅ Strengths
Global export network and brand recognition
Automated production and in-house product design
Healthy liquidity with ₹68.95 crore cash reserves
Low debt: Debt-to-equity ratio of 0.06x
Upgraded credit rating to CARE A+/Stable, A1+
⚠️ Concerns
Sequential revenue and profit decline in Q3 FY26
High promoter remuneration (historically 40–60% of PAT)
TTM P/E of 29.80 may not be sustainable if momentum slows
💡 Opportunities
₹30 crore solar capex could reduce long-term power costs
Export growth potential in Africa and Middle East
5–8% expected revenue CAGR over the next 2–3 years
Margin stability expected in the 22–25% range
📦 Order Book & Future Outlook
No formal order book disclosure
Q2 FY26 revenue strength suggests robust business pipeline
Q3 performance may reflect temporary delays or seasonality
Watch for Q4 FY26 clarity on demand normalization
🧠 Daily Chart and Final Word
Pix Transmissions remains fundamentally solid, backed by strong export performance and conservative financial management. Yet, signs of short-term softness in earnings, valuation concerns, and governance optics call for prudence.
The stock has been corrected from the highest of Rs 2800/- and recovered from the low of Rs 1185/-. The long-term investors may consider adding on dips post valuation correction and monitor for the FY26 closing results for clearer signals.
⚠️ Disclaimer
This analysis is for educational and informational purposes only and does not constitute financial advice. All data is sourced from public company filings, analyst reports, and third-party sources believed to be reliable. In line with SEBI’s guidelines, all market data is presented with a three-month lag. Investors should carry out their own due diligence and consult the financial advisor before making any investment decisions. The views expressed are personal and may be subject to errors or bias.
💬 Let’s Talk with You
What’s your perspective on Pix Transmission’s Q3 performance?
Do you see this as a long-term opportunity or short-term risk?
Share your insights or contrarian views — let’s decode it together!
Folks, the quarterly figures are not actuals and may have issues. Please take a note.
Got it 👍 Thanks