Interim dividend, ₹450 crores capex and second ESOP grant among board meeting outcomes
Board meeting held on 22 October 2026; unaudited results for the quarter and half-year ended 30 September 2026 approved.
By ScoutQuest · · 3 min read
- Interim Dividend
- ₹2/- per equity share for FY 2026-27
- Capex Approved
- ₹450 crores for capacity expansion, in phases up to FY 2030-31
- ESOP Grant
- ~5.78 lakh employee stock options at exercise price of ₹736.72
Board meeting outcome, 22 October 2026
The board approved the unaudited financial results for the quarter and half-year ended 30 September 2026 and took four other decisions.
Dividend
The board declared an interim dividend of ₹2/- per equity share for the financial year 2026-27. The record date for deciding who receives it is 2 November 2026, and payment is to be made on or before 21 November 2026 to shareholders whose names appear in the register of members, or as beneficial owners in the depository records, on the record date.
Capex and capacity
- The board approved a capex of ₹450 crores to increase manufacturing capacities and value-addition capabilities.
- The plan also consolidates the company's 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, with funding from internal accruals and debt.
- Sheet metal (lamination) capacity is stated at 1,08,000 MT per annum as on 30 September 2026, with a post-proposal capacity of 1,60,000 MT.
- The stated rationale is sustained demand growth across mining and off-highway vehicles, power generation (thermal, hydro, pumped storage and wind), data centres, railways and metro infrastructure, with the aim of improving operational efficiency and optimising costs.
Employee stock options
The board noted the second grant of ~5.78 lakh employee stock options under the Pitti ESOP Scheme 2024, at an exercise price of ₹736.72 per option. That exercise price is stated to be a discount of 23.03% to the closing market price of ₹957.20 per equity share on the National Stock Exchange of India Limited on 21 October 2026, the previous trading day. Each option carries the right to apply for and be allotted one equity share of the company. The scheme is administered through a trust route, where a trust may acquire shares by way of secondary acquisition or the company may issue shares to the trust. Options vest under time-based and performance-based schedules, with the percentage vesting set out for each year and subject to performance conditions in the grant letter. Options under the first grant held by employees who exited before completion of the vesting period stand cancelled.
Management changes
- Sandip Agarwala moves from Chief Operating Officer - Motor & Generator Components Business to Deputy Chief Executive Officer.
- Chaitra Sundaresh moves from Deputy Chief Operating Officer to Chief Operating Officer - Motor & Generator Components Business.
- Avinash Arun Patil is promoted from President - Maharashtra Operations to Deputy Chief Operating Officer and, consequently, becomes part of the Senior Management Personnel.
All three changes take effect from 22 October 2026.
How to read it
The update combines a cash payout, a multi-year capital expansion, employee stock compensation and a leadership reshuffle. The dividend has a fixed record date and a payment window ending 21 November 2026. The capex is spread over phases up to FY 2030-31 and is proposed to be funded by internal accruals and debt, so the capacity it adds would come on stream over time. Shareholders can track the dividend credit against the record date and follow the company's disclosures as each capex phase progresses.
Also from Pitti Engineering
Audio recording of Pitti Engineering's 23 October 2026 earnings conference call on Q2/H1 FY27 results made available
23 Oct 2026
Q2FY27: total income up 16.3% to Rs. 580.5 Cr, adjusted PAT down 15.1%; Rs. 450 crore capex announced
23 Oct 2026
Pitti Engineering Q2FY27: revenue up 21.1% to Rs 578.4 crore, adjusted PAT down 15.1%; ~Rs 740 crore capacity expansion targeted by FY31
23 Oct 2026
More numbers
- Interim dividend per equity share₹ 2/-
- Approved capex for capacity expansion₹450 crores
- Second ESOP grant - options granted5,77,500 employee stock options
- ESOP exercise price per option₹ 736.72
- Discount to closing market price on NSE23.03%
- Closing market price on NSE, 21 October 2026₹ 957.20
- Existing sheet metal (lamination) capacity as on 30-Sep-20261,08,000 MT
- Post proposed sheet metal capacity1,60,000
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