This article first appeared on GuruFocus .
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Revenue:INR423.17 crores for FY '26, up 13.33% from INR373.39 crores in FY '25.
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EBITDA:INR129.64 crores for FY '26, a growth of 17.3% from INR110.5 crores in FY '25.
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EBITDA Margin:30.64%, an increase of 104 basis points from 29.6% in FY '25.
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PAT (Profit After Tax):INR86.86 crores for FY '26, up 20.31% from INR72.2 crores in FY '25.
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PAT Margin:20.53%, an increase of 119 basis points from 19.34% in FY '25.
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Q4 FY '26 Revenue:INR112.43 crores, up 15.43% from INR97.4 crores in Q3 FY '26.
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Q4 FY '26 EBITDA:INR34.25 crores, a growth of 9.7% from INR31.2 crores in Q3 FY '26.
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Q4 FY '26 PAT:INR23.1 crores, up 12.58% from INR20.59 crores in Q3 FY '26.
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Cash Reserves:INR114 crores as of 31st March '26.
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Exports Contribution:Over 60% of revenues for FY '26.
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Release Date: June 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Steelcast Ltd ( BOM:513517 ) reported a 13.33% increase in revenue from operations for FY '26, reaching INR423.17 crores compared to INR373.39 crores in FY '25.
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The company's EBITDA grew by 17.3% to INR129.64 crores, with an improved EBITDA margin of 30.64%, up by 104 basis points from the previous year.
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PAT for FY '26 increased by 20.31% to INR86.86 crores, with a PAT margin of 20.53%, reflecting a 119 basis point improvement.
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Exports contributed over 60% of revenues, highlighting Steelcast Ltd ( BOM:513517 )'s strong global positioning and consistent performance in international markets.
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The company maintains a debt-free balance sheet with healthy cash reserves of around INR114 crores, providing financial flexibility and strength to navigate uncertainties.
Negative Points
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The company faced increased manufacturing expenses due to higher maintenance activities and machinery repairs, impacting overall cost management.
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Higher fuel prices and increased production activity led to a rise in power and energy costs, exerting pressure on margins.
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Despite strong annual performance, there was some moderation in volumes and revenue when compared to the corresponding period of the previous year.
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The ongoing geopolitical tensions, particularly in the Middle East, have led to elevated fuel and freight costs, impacting the company's cost structure.
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Steelcast Ltd ( BOM:513517 ) anticipates a potential decline in sustainable EBITDA margins to 25-26% in the long term, compared to the current 28-30% levels.
Q & A Highlights
Q: With the increasing demand due to data centers, do you foresee domestic demand picking up in India? Also, are you planning to expand into other geographies for defense components? A: According to our knowledge, there is no significant requirement for steel castings in data centers, so we don't expect a demand increase from this sector. Regarding defense components, our parts have been approved, and we are awaiting orders for serial supplies. Due to the Iran-US war, orders are delayed, but we expect them in the next one or two quarters.
Q: Can you clarify your plans for CapEx, especially regarding capacity utilization and expansion? A: We initially planned to decide on CapEx by the end of 2026, but due to increased demand and new parts being approved for serial supply, we will decide by the end of July 2026. Our current capacity utilization is around 63-64%, and we don't need to wait until 75% utilization to expand.
Q: What is the order book for FY '27, and how does it look for Q1? A: Our order book typically covers 110 to 120 days, valued at approximately INR130 to INR135 crores. This is effective from April 1.
Q: Can you provide insights into the new part development and its impact on demand? A: New part development is ongoing, with over 50 parts in various stages. Despite geopolitical tensions, the pace of new part development has not been impacted and has increased in recent weeks. These parts are primarily for industries like mining, earthmoving, construction, and locomotives.
Q: What are your expectations for growth and margins in FY '27? A: We aim for a 20% volume growth in FY '27 and aspire to achieve more than INR100 crores in PAT. While we have been operating with EBITDA margins of 28-30%, a sustainable level would be around 25-26%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
