Kalyani Cast-Tec — Q2 FY26 earnings call

Call held 15 Nov 2025

Management summary

Kalyani Cast-Tech Limited reported a strong first half for FY26, with total income growing 33% and profit increasing 19% year-on-year, driven by its diversified container manufacturing business and new initiatives. The company has secured INR140 crores in orders for FY26 and is progressing with significant expansion plans including a Gati Shakti Rail Terminal and a wagon manufacturing unit, though some approvals and operational timelines are still being finalized. Management emphasized innovation in specialized containers and a focus on reducing logistics costs for the nation.

Highlights

  • Total income for H1 FY26 increased by 33% YoY to INR94.24 crores, up from INR70.60 crores in the prior year's half-year.

  • Profit for H1 FY26 increased by 19% to INR9.5 crores, up from INR8 crores.

  • EPS for H1 FY26 increased from INR11.16 to INR13.11.

  • Book value of share increased from INR81 to INR103.

  • Debt ratio is almost nil.

  • Secured INR140 crores in orders for FY26, with INR92.6 crores already executed by Sep 30.

  • Received in-principle approval for Gati Shakti Rail Terminal and progressing with wagon manufacturing unit (80% ready for container capacity by March 2026).

Concerns

  • Management declined to provide specific full-year revenue or FY27 outlook, stating it would be discussed in future calls.

  • Final approval for Gati Shakti terminal is still pending, though internal construction is ongoing.

  • Wagon manufacturing unit's commercial operations are expected only in H2 FY27, later than some other projects.

Key financials

  1. Total Income ₹94.24 Cr +33.5%YoY
  2. Profit ₹9.5 Cr +18.8%YoY
  3. EPS ₹13.11 +17.5%YoY
  4. EBITDA Growth 16%
  5. Book Value of Share ₹103 +27.2%YoY

What they filed

Q4 FY26: revenue up 28.9%, net profit up 75.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue49 45 70 69 92 +88%58 +29%
EBITDA8 5 11 8 12 +50%10 +100%
Net profit6 4 8 6 10 +67%7 +75%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹140 Cr

as of 2025-09-30 quantified

Execution

INR92.6 crores already done up to 30th of September

Pipeline

other

In negotiations for further orders

We are in negotiations for further orders and expect to achieve our top line target for the year.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹185 Cr some amount from debt and some from internal generation
    • Setting up Gati Shakti Rail Terminal, inline container depot, wagon manufacturing unit, additional container manufacturing capacity, and steel foundry.
    Let me answer your question. We will be investing almost INR170 crores to INR200 crores. Out of which we have planned to take debt to some amount and some amount we will from our internal generation.
  • Debt Debt disclosed
    The debt ratio is almost nil at this point of time.

Guidance & targets

Revenue

  • Full Year Revenue Target Revenue · FY26 · Low confidence close to our target
    Target will be at this point of time telling exact figure will not be good from my point of view, but we will close to our target that much I can say.

    — Naresh Kumar

Profitability

  • EBITDA Margin Profitability · Ongoing · Medium confidence 10-12%
    No, I have been telling that our margins will be 10% to 12%. Sometimes it will be 10%, sometimes it will be 11%, sometimes it will be 12%. So, depending upon the conditions and the orders, what kind of orders we get.

    — Naresh Kumar

Capacity

  • Container Capacity Readiness Capacity · 2026-03-31 · High confidence Ready
    The container will be ready by that because 80% of the said work is over and only 20% is left.

    — Naresh Kumar

  • Wagon Manufacturing Unit Commercial Operation Capacity · H2 FY27 · Medium confidence Start contributing to revenue
    The plan will be available in the second half of the next FY.

    — Naresh Kumar

Infrastructure

  • Gati Shakti Rail Terminal Commissioning Infrastructure · 2026-03-31 · High confidence Commissioned
    Gati Shakti is a railway given as a target by 31st March, we have to anyway commission it.

    — Naresh Kumar

Capex

  • Expansion Plan Investment Capex · Future · High confidence INR170-200 crores
    We will be investing almost INR170 crores to INR200 crores. Out of which we have planned to take debt to some amount and some amount we will from our internal generation.

    — Naresh Kumar

What to watch in Q3 FY26

Wagon Manufacturing Unit Commercial Operation

Next quarter
Current Plan available in H2 FY27 (best case scenario)
Target Progress towards commercial operations

Why it matters

This is a major new revenue stream and capacity expansion, crucial for the company's long-term growth.

The plan will be available in the second half of the next FY.

Risks & concerns

  • Government Approval Delays

    medium

    Delays in final government approvals for projects like the Gati Shakti terminal are unpredictable, though internal construction proceeds.

    Management acknowledged

  • Competition in Wagon Manufacturing

    medium

    Existing large players dominate the wagon manufacturing market, but management believes its specialized designs and focus on private operators will differentiate it.

    Analyst downplayed

Q&A highlights

3 direct, 4 evasive
FY27 Outlook Evasive
That we will talk in the next con-call. Let us finish this FY first.

Management deferred providing an outlook for the next financial year, which could indicate uncertainty or a desire to manage expectations.

Asked by Garvit Goyal

Gati Shakti Terminal Approval Delays Partial
You see, when you deal with the government, it's very difficult to tell the exact dates and time. Anyway, we are not waiting for those approvals. The inside construction is already going on because that approval, after approval, we have to do only 200, 250 meters of rail line. Rest of the things we will be completing much before that.

Highlights the challenges and unpredictability of government approvals, but also management's proactive approach to continue construction.

Asked by Garvit Goyal

Wagon Manufacturing Unit Timeline Direct
The plan will be available in the second half of the next FY.

Asked by Garvit Goyal

Promoter Holding Dilution Evasive
I think let us not discuss those things. The company valuation has increased after dilution and its always to good to if big investors contribute in the growth of the company ..

Management declined to discuss the reason for a 10% reduction in promoter holding, which is a significant event for investors.

Asked by Punit Mittal

Competitive Advantage in Specialized Wagons Direct
Because this particular design, we will be only having the exclusive right of marketing and manufacturing.

Clarifies the company's unique selling proposition and competitive edge in specialized wagon designs, suggesting a strong barrier to entry for competitors.

Asked by Rushabh Shah

Wagon Manufacturing JV Evasive
We have -- that we will disclose at the right point of time. We are in discussion with various people. If something comes up...

Management indicated ongoing discussions for a JV related to wagon manufacturing but chose not to disclose details, suggesting potential future strategic developments.

Asked by Kalyan K

Guidance for Orders from New Facilities Evasive
No, we can't give that guidance. We can't give that guidance until the shop opens. It is very difficult to say about that. And I don't want to be unnecessarily caught that you said this last time. So, what happened? I don't want to get into that particular...

Management explicitly refused to provide forward guidance on order bookings from new facilities until they are operational, indicating a cautious approach to future projections.

Asked by Bharat Bhushan

Cash Flow from Receivables Direct
No. It is a regular practice. If you do more business, it will increase. With more business. Now, our average is more than INR15 crores. Last year, it was INR15 crores. If your average increases, then that will also increase.

Confirmed that the increase in cash flow from receivables is a normal outcome of business growth, alleviating potential concerns about working capital management.

Asked by Amit Sharma

3 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance Highlights

Kalyani Cast-Tech Limited reported a spectacular first half for FY26. Total income for the half-year ended September 30, 2025, increased by 33% year-on-year to INR94.24 crores, up from INR70.60 crores in the previous year. Profit also saw a significant rise of 19%, reaching INR9.5 crores compared to INR8 crores in the same period last year. This strong performance led to an increase in EPS from INR11.16 to INR13.11, and the book value of the share improved from INR81 to INR103. The company also noted its debt ratio is almost nil, indicating a strong financial position.

Strategic Diversification and Innovation in Containers

Since diversifying into container manufacturing in 2021, Kalyani Cast-Tech has produced approximately 15,000 containers, saving INR420 crores in foreign exchange over four and a half years. The company's core focus is on designing and developing specialized containers to reduce transportation unit costs. Recent innovations include the use of stainless steel in dwarf containers, a world-first that reduces tare weight and increases payload, and the development of foldable containers for steel product transportation, which has been positively received by Indian Railways for reducing empty run costs.

Expansion Plans and New Facilities

The company is embarking on a new era of expansion, having acquired 144 acres of land at a strategic location. Plans include setting up a Gati Shakti Rail Terminal, which has received in-principle approval from railways, and an inline container depot for EXIM containers. A wagon manufacturing unit with an annual capacity of 7500-7800 units is also planned, with the first phase (2500 units) already under construction. Additionally, a steel foundry for wagon and container components will be established, creating a unique integrated facility. The total investment for these expansion plans is estimated to be between INR170-200 crores, funded through a mix of debt and internal generation.

Order Book and Future Outlook

For the current financial year (FY26), Kalyani Cast-Tech has secured orders worth INR140 crores, with INR92.6 crores already executed by September 30, 2025. The company is actively negotiating for further orders and expects to achieve its top-line target for the year. While management refrained from giving specific full-year revenue guidance or an outlook for FY27, they reiterated their target EBITDA margin of 10-12%, which varies based on market conditions and order types.

Wagon Manufacturing & Approvals

The company is developing a special design for wagons for container transportation, which has received in-principle clearance and an MOU for joint development with Indian Railways. While machines for the wagon manufacturing unit have been ordered and are arriving soon, the formal application for G-105 approval (which guides plant setup and eligibility) will only be submitted once all 70-80 required machinery and plants are in place. Commercial operations for the wagon manufacturing unit are anticipated to begin in the second half of FY27. The Gati Shakti Rail Terminal and container capacity are targeted to be ready by March 31, 2026.

Competitive Strategy and Market Positioning

Kalyani Cast-Tech differentiates itself by focusing on specialized logistics solutions and innovative container designs rather than competing in the 'rat race' of standard products. Management believes its exclusive rights to market and manufacture certain specialized designs provide a significant competitive advantage. The company also highlighted its strategic location in Rewari, near multiple rail terminals, which offers flexibility for customers in transportation and helps avoid empty repositioning costs, with all costs borne by customers at EX factory prices.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls