Simplex Castings Reports Strong FY26 Results, Announces 1:5 Stock Split

Simplex Castings Ltd. posted a robust financial performance for the fiscal year ended March 31, 2026. The company reported a net profit of ₹21.26 crore, a significant increase of 40.50% compared to ₹15.13 crore in the previous fiscal year. Revenue from operations grew by 18.05% to ₹202.90 crore from ₹171.88 crore in FY25.

Reader Takeaway: Strong profit growth driven by operational efficiency alongside a stock split to improve accessibility.

What just happened

Simplex Castings Ltd. announced its audited financial results for FY26, revealing a substantial jump in net profit and revenue. The company's net profit surged by 40.50% to ₹21.26 crore, while revenue from operations increased by 18.05% to ₹202.90 crore. Concurrently, the Board of Directors approved a 1:5 stock split, sub-dividing equity shares from a face value of ₹10 to ₹2, subject to shareholder approval.

Why this matters

The strong financial performance indicates improved operational efficiency and profitability for Simplex Castings. The proposed stock split is a strategic move to make the company's shares more affordable to a wider investor base, potentially increasing trading liquidity and market participation. The unmodified audit opinion from the statutory auditor adds credibility to the reported financials.

The backstory

In FY25, Simplex Castings had reported a net profit of ₹15.13 crore on revenues of ₹171.88 crore. The company also reported an exceptional item of ₹0.86 crore in FY26 due to a loss on the sale of Plant & Machinery, which impacted profit before tax from continuing operations.

What changes now

Following the Board's approval, the stock split will proceed to shareholder approval. If sanctioned, the sub-division of shares will alter the number of outstanding shares and reduce the face value per share. Additionally, the company has seen some management changes, with Mr. Palash Singhania appointed as Additional Director (Non-Executive Independent), Mr. Avinash Hariharno moving from CFO to Additional and Whole-Time Director, and Mr. Rajesh Kumar Acharya taking over as the new CFO.

Risks to watch

While the results are positive, investors will need to monitor if the company can sustain this growth momentum in the upcoming quarters. The successful execution of the stock split and any potential market reaction to it will also be key factors. The impact of the exceptional item on overall profitability should also be considered.

Peer comparison

(No peer comparison data available in the filing).

Context metrics (time-bound)

• FY26 Revenue: ₹202.90 crore (up 18.05% from FY25)
• FY26 Net Profit: ₹21.26 crore (up 40.50% from FY25)
• FY26 Basic EPS: ₹28.18 (up 31.74% from FY25)
• Stock Split Ratio: 1:5 (₹10 to ₹2 face value)

What to track next

Investors should track the outcome of the shareholder meeting for the stock split approval, the effective date of the split, and the company's performance in the next financial reporting periods to see if the growth trend continues.