Alicon Castalloy Limited reported a stable Q3 FY26 performance with 10% YoY revenue growth, driven by strong domestic demand in PV and CV segments. However, profitability was impacted by global headwinds, operational disruptions like a cyber-attack on a key customer, and one-time costs. The company maintains a robust order book and anticipates improved performance and order inflows from global markets in the coming quarters.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Revenue | ₹430 Cr | +10.0% YoY |
| EBITDA | ₹47.2 Cr | +34.0% YoY |
| EBITDA Margin | 10.9% | — |
| PAT | ₹3.3 Cr | +322.0% YoY |
| PBT (pre-exceptional) | ₹11 Cr | +900.0% YoY |
| Gross Margin | 47.2% | +1.4% YoY |
| Metric | Latest | Trend |
|---|---|---|
| Revenue(crores) | 495 | |
| Gross Margin | 45% | |
| EBITDA(crores) | 46 | |
| EBITDA Margin | 10.9% | |
| Depreciation(crores) | 24.8 | |
| Net Profit(crores) | 9.3 |
Total Value
₹ 9,100 crores
as of 2025-12-31
Execution
execution of the new order book as well as the end of the existing products, so both are happening.
Composition
"The company has a healthy order book and expects it to grow from the next year, especially with renewed inquiries from the US market."
| Category | Headline | |
|---|---|---|
Capex | ₹28 crores this quarter · ₹125 crores (FY26) planned | |
Debt | Debt disclosed |
| Category | Target | Priority |
|---|---|---|
| Revenue | Domestic Revenue Growth→10% to 12% improvement | Medium |
| Revenue | Exit Revenue from Order Book→Rs. 3,500 crore | High |
| Revenue | New Orders Revenue (Q3 wins)→Rs. 300 crore to Rs. 350 crore | Medium |
| Margin | EBITDA Margin→12.5% to 13% | Medium |
| Margin | EBITDA Margin→12% to 12.5% | Medium |
| Margin | Long-term EBITDA Margin→13% and to reach the level of 14% | Low |
| Capex | Capital Expenditure→Rs. 125 crore to Rs. 130 crore | High |
| Operations | JLR eAxle Project Full Utilization→Full utilization | Medium |
| # | Metric | |
|---|---|---|
| 01 | Q4 FY26 Domestic Revenue Growth | |
| 02 | Q4 FY26 EBITDA Margin | |
| 03 | JLR eAxle Project Full Utilization | |
| 04 | Order Book Inflow from US Market | |
| 05 | FY26 Capital Expenditure |
| Severity | Risk |
|---|---|
medium | Supply-side challenges (semiconductor availability, rare earth magnets) Constrained semiconductor availability and difficulties in importing rare earth magnets are limiting production ramp-up. Management |
medium | Global volatility and tariff-related actions Uncertainty from tariff-related actions weighed on sentiments and volumes from international customers, leading to a muted quarter for global operations. Management |
high | Operational disruptions for European and US customers A cyber-attack on a UK OEM customer disrupted production for 5 weeks, and a US commercial vehicle customer faced demand headwinds with 25-26% volume decline in specific categories, impacting Alicon's sales and profitability. Management |
medium | Underutilization and losses from JLR eAxle project The complex JLR eAxle EV project is delayed by the customer, leading to underutilization and losses, though full ramp-up is expected by July/August 2026. Management |
low | Metal price increases Around ₹6-7 crore of additional cost due to metal price increases impacted gross margins in Q3, though partially passed on to customers. Management |
The domestic automotive market showed strong double-digit growth in Q3 FY26, with PV, CV, and 2-wheeler segments growing by 12%, 13%, and 13% YoY respectively. This momentum led to Alicon's standalone domestic business delivering strong double-digit growth. However, global operations faced headwinds from volatility, tariff-related actions, and seasonally softer markets, with North America down 2% and UK down 19% YoY, impacting overall volumes from international customers.
Alicon Castalloy reported Q3 FY26 revenue of ₹430 crore, a 10% YoY increase from ₹393 crore in Q3 FY25, and a marginal 0.4% sequential growth from Q2 FY26. EBITDA grew 34% YoY to ₹47.2 crore, but the EBITDA margin moderated to 10.9% from 12.9% in Q2 FY26. Profit after tax stood at ₹3.3 crore, a 322% YoY increase but a 76% QoQ decline from ₹14 crore in Q2 FY26.
The moderation in Q3 EBITDA margin was attributed to higher employee costs (an additional ₹2 crore in Q3, with a full-year impact of ₹10 crore), asset impairment (₹1.5 crore), and a less favorable product mix due to lower volumes in higher-value CV components. An exceptional item📎 of ₹5 crore related to the new labour code also impacted PAT. Metal price increases added ₹6-7 crore in costs, though partially offset by customer pass-throughs.
The European subsidiary incurred losses due to a cyber-attack on a UK OEM customer, disrupting supplies for 5 weeks, and demand headwinds from a US commercial vehicle customer, leading to 25-26% volume decline in specific categories. The JLR eAxle EV project, a complex part, is currently underutilized due to customer delays, impacting profitability but is expected to ramp up by July/August 2026. The company is also investing in digital process controls and automation at Pune facilities.
Alicon maintains a healthy order book of approximately ₹9,100 crore, with an expected FY29 exit revenue of ₹3,500 crore. New orders secured in Q3 include 4 parts (3 ICE, 1 Carbon-Neutral; 3 CV, 1 PV), notably a high-value eAxle housing for a premium German automobile OEM. The company anticipates further order inflow from FY27, especially from the US market, following recent trade agreement frameworks, which are expected to translate into improved opportunities and volumes.
Capital expenditure for Q3 FY26 was ₹28 crore, bringing the 9-month cumulative to ₹92 crore, with a full-year target of ₹125-130 crore focused on automation, capacity enhancement, and readiness for upcoming programs. Management guided for Q4 FY26 EBITDA margins of 12.5-13% and full-year FY26 margins of 12-12.5%, with a long-term aspiration to reach 13-14%.