PEPitti Engineering513519Capex expansion plan

Board approves ₹450 crore capex to expand capacity and consolidate Karnataka lamination operations

Board approves capex of ₹450 crores for capacity expansion and value addition.

By ScoutQuest · Fri 23 Oct 2026, 9:18 AM IST · 2 min read

Approved Capex

₹450 crores

Target Sheet Metal Capacity

rise from 1,08,000 MT to 1,60,000 MT per annum

Implementation Timeline

In phases up to FY 2030-31; funded via internal accruals and debt

What the board approved

• At its meeting held on 22nd October 2026, the Board of Directors approved a capex of ₹450 crores to increase manufacturing capacities and value-addition capabilities.
• The same project also consolidates the company's presently fragmented lamination manufacturing operations in Karnataka into a single integrated manufacturing facility.
• The project is proposed to be implemented in phases up to FY 2030-31.

Capacity, as stated in the disclosure

• Sheet metal (lamination): existing consolidated installed capacity of 1,08,000 MT per annum as on 30-Sep-2026, going to 1,60,000 MT per annum after the proposed expansion. No on-going addition is shown against this category.
• Machining: existing capacity of 8,13,600 machining hours. An approved expansion already underway is to enhance machining capacity to 10,80,000 machining hours by Q1 2029-30, and the post proposed capacity is shown as 13,14,000 machining hours.
• Current utilisation stands at about 78% for sheet metal and about 85% for machining.

Cost and funding

• The estimated project cost is ₹450 crores.
• The stated mode of financing is internal accruals and debt.

Why the company says it is expanding

• Sustained growth in demand is cited across mining and off-highway vehicles, power generation (thermal, hydro, pumped storage and wind), data centres, railways and metro infrastructure.
• The project is expected to increase capacities, improve operational efficiencies, optimise costs and support future growth, and to support anticipated growth in business volumes.

How a retail reader can frame this

• The update sets out a defined spend figure, a stated funding mix and specific capacity targets, with implementation spread across phases rather than in one year.
• The sheet metal capacity target of 1,60,000 MT per annum compares with an existing 1,08,000 MT per annum; the machining target of 13,14,000 hours compares with an existing 8,13,600 hours.
• Against those existing capacities, stated utilisation is about 78% for sheet metal and about 85% for machining.
• The timeline runs to FY 2030-31, and part of the funding is debt, which the update states alongside internal accruals.

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