Nelcast Limited reported strong financial results for FY26, with revenue rising to ₹1,328.40 crore and Profit After Tax surging 30% to ₹48.43 crore. The company also saw improved EBITDA margins and a stronger balance sheet.
Nelcast Ltd FY26 Results
Nelcast reported FY26 Revenue of ₹1,328.40 Crore and Profit After Tax (PAT) of ₹48.43 Crore.
Reader Takeaway: Improved PAT and EBITDA margin, but watch export volatility and input costs.
What just happened
Nelcast Limited announced its financial results for the fiscal year 2025-26, showcasing a significant increase in both revenue and profitability. The company's revenue reached ₹1,328.40 crore, a nearly 6% rise from ₹1,251.68 crore in the previous fiscal year. Profit After Tax (PAT) saw a substantial jump of approximately 30%, growing from ₹37.29 crore to ₹48.43 crore. The EBITDA margin also improved by 1 percentage point to 9.3% from 8.3%.
Why this matters
These results indicate Nelcast's strong operational performance and its ability to capitalize on demand in key sectors like commercial vehicles and tractors. The improved profitability and margin expansion signal enhanced efficiency and cost management. The proposed 35% dividend payout of ₹0.70 per share also signals a commitment to shareholder returns.
The backstory
Nelcast has been focusing on enhancing its operational leverage and securing new business. The company's production volume grew by about 9% to 91,304 MT in FY26 from 83,637 MT in the prior year. A disciplined approach to capital management has also led to a reduction in the debt-to-equity ratio to 0.4x from 0.5x.
What changes now
The company's positive outlook for FY27, driven by infrastructure spending, replacement demand, and potential pre-buy activity before emission norm changes, suggests continued growth momentum. The ramp-up of the Pedapariya facility is also expected to contribute.
Risks to watch
Investors should be mindful of export market volatility, particularly concerning US tariffs, which could impact revenue. Additionally, fluctuations in raw material costs, such as steel scrap, and energy prices pose a risk to profit margins if not managed effectively.
Peer comparison
(No peer comparison data available in the filing.)
Context metrics (time-bound)
- FY26 Revenue: ₹1,328.40 Crore (vs. ₹1,251.68 Cr in FY25)
- FY26 PAT: ₹48.43 Crore (vs. ₹37.29 Cr in FY25)
- FY26 EBITDA Margin: 9.3% (vs. 8.3% in FY25)
- FY26 Production Volume: 91,304 MT (vs. 83,637 MT in FY25)
- Debt-to-Equity Ratio: 0.4x (vs. 0.5x in FY25)
What to track next
Investors should monitor the company's ability to sustain its growth trajectory, manage input cost fluctuations, and capitalize on export market recovery and the planned facility ramp-up. The progress on new business wins and their impact on operations will also be crucial.