Nelcast Limited Reports Strong Financial Performance for FY26, Showing Significant Growth in PAT and EBITDA
Nelcast Limited, a major producer of Ductile and Grey Iron castings in India, announced its financial results for the fourth quarter and full year ended March 31, 2026. The results highlight a robust performance, with the company seeing significant improvements in profitability and the strengthening of its balance sheet.Commenting on the financial performance, Deepak Reddy Ponnavolu, Managing Director & CEO of Nelcast, noted that FY26 represented a period of steady progress as the company moved toward becoming a more efficient, value-driven organization. While revenue growth remained stable, profitability improved significantly, driven by enhanced utilization, cost discipline, and a favorable product mix.
He noted that domestic markets remained strong, particularly within the CV segment. Furthermore, exports experienced a pickup towards the end of the year, with the U.S. market contributing significantly, partly fueled by pre-buying ahead of forthcoming emission-related changes.
"Our strategic initiatives are now translating into tangible gains. The ramp-up of the Pedapariya plant and progress in new product development are generating increasing contributions from higher-value products, which is supporting margins," Mr. Ponnavolu stated. He added that although EBITDA per kg moderated in Q4 due to increased key raw material prices, the overall yearly trend reflected an underlying improvement in margins. The company also improved its financial flexibility by strengthening its balance sheet through disciplined debt reduction.
Consolidated Financial Highlights
The financial performance for the quarters and full year shows a marked increase in key metrics:| Particulars (Rs. Crores) | Q4FY26 | Q4FY25 | YoY Change | FY26 | FY25 | YoY Change |
|---|---|---|---|---|---|---|
| Total Revenue | 371.2 | 334.4 | 11.0% | 1,342.4 | 1,268.8 | 5.8% |
| EBITDA | 34.9 | 34.3 | 1.7% | 124.5 | 105.6 | 17.8% |
| EBITDA Margin% | 9.4% | 10.3% | (86) bps | 9.3% | 8.3% | 95 bps |
| EBITDA/kg (in INR) | 13.5 | 14.8 | (9.2)% | 13.6 | 12.6 | 7.9% |
| PAT | 15.3 | 13.5 | 12.7% | 48.4 | 37.3 | 29.9% |
| PAT Margin% | 4.1% | 4.1% | 6 bps | 3.6% | 2.9% | 67 bps |
Key Full Year Highlights (FY26 vs FY25):
- Revenue: Total Revenue reached Rs. 1,342.4 Crores in FY26, marking a 5.8% increase from Rs. 1,268.8 Crores in FY25.
- Profitability: Profit After Tax (PAT) witnessed a substantial growth of 29.9%, standing at Rs. 48.4 Crores in FY26.
- Operational Efficiency: EBITDA grew by 17.8%, reaching Rs. 124.5 Crores in FY26, compared to Rs. 105.6 Crores in FY25.
- Return Ratios: Return on Equity (ROE) and Return on Capital Employed (ROCE) improved to 8.1% and 10.8% in FY26, up from 6.7% and 9.0% in FY25, respectively.
- Balance Sheet: The company further strengthened its balance sheet through debt repayment, bringing the Debt to Equity ratio down to 0.4x from 0.5x in March 2025.
Company Overview and Outlook
Nelcast Ltd, incorporated in 1982, specializes in manufacturing grey and ductile castings for the M&HCV and tractor industry segments. The company has an aggregate installed production capacity of 160,000 tonnes per annum. Its facilities are located at Ponneri in Tamil Nadu, and at Gudur and Pedapariya in Andhra Pradesh. Approximately 30-35% of the company’s overall revenues are generated from export markets.Looking ahead, management stated that the combination of exports recovery, improving product mix, and a stronger balance sheet position are set to position the company for sustained margin expansion and growth in FY27.
NELCAST Stock Price Movement
Nelcast Limited shares slipped by 1.48% today, settling at ₹140.59 in post-market trading. The stock moved on considerable volume, with a total of 154,061 shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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