Nelcast Reports Q1 FY27 Results, Noting Revenue Growth and Focus on New Product Ramp-Up

Nelcast Reports Q1 FY27 Results, Noting Revenue Growth and Focus on New Product Ramp-Up​

Chennai: Nelcast Ltd, a leading manufacturer of Ductile and Grey Iron castings in India, announced its unaudited financial results for the first quarter ended June 30, 2026. The company reported steady performance supported by healthy demand in key end markets, although profitability was impacted by rising input costs.

The consolidated financial highlights show marginal growth in total revenue while EBITDA and PAT declined compared to the previous year's corresponding period.

Consolidated Financial Performance Highlights (in Rs. Crores)


Operational Commentary and Outlook

Commenting on the results, Deepak Reddy Ponnavolu, Managing Director & CEO of Nelcast, stated that Q1 FY27 delivered a steady performance, driven by strong momentum in the tractor and commercial vehicle segments. Exports also recorded a sequential improvement during the quarter, reflecting encouraging demand trends.

He noted that profitability was affected by temporary factors, specifically elevated raw material costs resulting from geopolitical developments and labour availability constraints across the industry. The company has initiated price revision discussions with customers and expects these measures to gradually benefit performance in coming quarters.

A key operational highlight is the commencement of production for new products in Q2 FY27. These programs are planned to ramp up progressively throughout the year, contributing significantly to volumes and revenues starting from the second half of the fiscal year. The company anticipates improving capacity utilization as demand strengthens and new product volumes scale up. Furthermore, Nelcast continues to expand its customer relationships across Europe, securing new business opportunities that strengthen the long-term growth pipeline.

"We believe the Company is at an important inflection point," Mr. Ponnavolu stated, noting that with rising utilization levels, improving exports, and traction from customer additions, foundations are being laid for a greater phase of growth in the years ahead.

Segment and Company Profile

Nelcast Ltd was incorporated in 1982 and is a manufacturer of grey and ductile castings primarily serving the M&HCV and tractor industry segments. Approximately 30 to 35% of its total revenues are derived from export markets.

The company's key products for the M & HCV segment include differential carriers, bogie suspension brackets, and conventional brackets. For the tractor segment, major offerings include transmission casing, axle housing, hydraulic lift cover, central housing, and base plates. Nelcast also supplies brake discs for metro rail projects and railways respectively.

The company maintains an aggregate installed production capacity of 160,000 tonnes per annum. Its operational factories are situated at Ponneri in Tamil Nadu, and at Gudur and Pedapariya in Andhra Pradesh.

NELCAST Stock Price Movement​

Nelcast Limited shares slipped by 13.30% today, settling at ₹116.64 in the post-market session after witnessing significant volatility. The stock traded a volume of 2.81 million shares during its sessions as it closed well below its daily range.