Steelcast

In FY26, the global economy demonstrated resilience with approximately 3.3% GDP growth despite geopolitical uncertainties, driven by investments in technology, infrastructure, and industrial capacity. India continued its strong growth trajectory, with GDP growth estimated at 7.3%-7.6%, supported by robust domestic consumption, sustained infrastructure investments, and a policy thrust on manufacturing and localization, contributing to the economy's resilience and expansion.

The global metal casting industry remains a critical enabler of industrial growth, with demand driven by sectors such as construction equipment, mining, energy, and engineering. The industry is expected to grow at a healthy pace, supported by ongoing infrastructure development and increasing investments in energy transition. India is strengthening its position as a global manufacturing hub, benefiting from rising localization and expanding export opportunities, positioning Steelcast well to capitalize on emerging opportunities through outsourcing by global OEMs and supply chain diversification.

For FY26, revenue from operations increased by 13.33% to ₹423.17 crores, with EBIDTA growing 17.30% to ₹129.64 crores, resulting in a 30.64% margin (up 104 bps). PAT for the year was ₹86.86 crores, a 20.31% growth, with a margin of 20.53% (up 119 bps). Q4 FY26 saw sequential growth, with revenue at ₹112.43 crores (up 15.43% QoQ), EBIDTA at ₹34.25 crores (up 9.74% QoQ), and PAT at ₹23.18 crores (up 12.58% QoQ).

Steelcast maintained strong discipline on costs, effectively managing material costs despite commodity market volatility^🌐 through agile procurement strategies. However, Q4 FY26 experienced short-term margin pressure due to increased manufacturing expenses, higher fuel prices, and energy costs. The company expects to receive price adjustments from customers in subsequent quarters, along with Rupee depreciation, to offset these cost impacts, ensuring underlying business fundamentals remain strong.

The company is confident in sustaining strong growth momentum, targeting over ₹100 crores PAT in FY27 and aspiring to double sales by FY29 with present capacity. Exports contributed over 60% of FY26 revenues, driven by strong traction from North America and other developed markets. Steelcast is in advanced stages of finalizing capex for capacity expansion, with a decision expected by July 2026 and readiness by July 2026 end.

Steelcast maintains a debt-free balance sheet with healthy cash reserves of approximately ₹114 crores, providing financial flexibility to navigate uncertainties and capitalize on future opportunities. The company is commissioning a 2.4 MW hybrid power project by June 2026, which is expected to generate annual savings of approximately ₹3.6 crores. Strong governance and robust operational controls underpin the company's growth strategy, ensuring high standards of financial discipline.