Detailed Narrative
Strong Financial Performance in FY26
Thaai Casting Limited delivered robust financial results for FY26, with consolidated Total Income reaching ₹146.36 crore, marking an 18.89% year-over-year growth. EBITDA for the full year stood at ₹36.48 crore, up 19.29% YoY, with healthy EBITDA margins of 24.93%. Net Profit also saw a significant increase to ₹12.75 crore, growing by 15.32% YoY. For H2 FY26, Total Income was ₹83.88 crore (up 21.97% YoY) and Net Profit was ₹6.58 crore (up 15.68% YoY).
Robust Order Inflows and Book
The company experienced strong momentum in order inflows and customer additions during FY26. It secured multiple domestic orders across automotive and non-automotive segments, totaling approximately ₹126.53 crore, to be executed over the next 60 months. Additionally, fresh domestic orders worth ₹76.6 crore, along with further orders of ₹3.76 crore and ₹12.43 crore, were received during the year. The current overall order book stands at a healthy ₹800 crore, excluding gas nitrating but including other vertical segments.
Operational Enhancements and Capacity Expansion
Thaai Casting maintained healthy utilization levels of approximately 75-80% across its casting and machining divisions. The company continued to invest in automation, smart manufacturing systems, and advanced machining capabilities. Total Fixed Assets, including Capital Work-in-Progress, increased significantly by 73% YoY to ₹178.53 crore in FY26 from ₹103 crore in FY25, reflecting substantial investments in future growth and manufacturing scalability.
Strategic Focus on High-Growth Verticals
The company strengthened its presence in high-growth and technology-driven verticals such as gear shaping, heavy machining, induction hardening, gas nitriding, and precision ferrous machining. With one of India's largest gas nitriding furnaces and advanced gear shaping capabilities, Thaai Casting is well-positioned to capitalize on evolving industry opportunities. The gas nitriding segment contributes significantly to PAT, with operating margins exceeding 30%.
Global Market Expansion and Presence
Thaai Casting marked an important milestone in its global expansion journey by participating in EUROGUSS 2026 in Germany. This participation provided an opportunity to showcase capabilities on an international platform and strengthen relationships with global customers, suppliers, and strategic partners. These initiatives are expected to support the company's export ambitions and international business development in the coming years.
Capital Structure and Asset Growth
The company's total asset base expanded by approximately 42% YoY, from an implied ₹203 crore to ₹282 crore, demonstrating its commitment to building a future-ready engineering platform. Reserves & Surplus also increased by approximately 38% YoY, further strengthening the balance sheet and long-term financial position. During FY26, the company also strengthened its financial position through a capital raise of approximately ₹3.49 crore via preferential allotment, aimed at supporting future expansion and technology upgrades.
Divestment of Simtech CNC Subsidiary
Thaai Casting divested its Simtech CNC subsidiary during the year, which had generated sales of around ₹16 crore. The strategic rationale behind this divestment was to address concerns from competitors who were also customers of Simtech CNC, as their presence in the subsidiary's management created conflicts of interest and unhappiness among these clients.
Advanced Heavy Machining Capabilities
The company has invested in advanced European ultra-precise machines for heavy machining and gear shaping. This includes a WFL mission machine capable of producing parts up to 4.5 meters in length and 670 mm in diameter, a TARAC vertical turning machine with a 17-ton table capacity, and Gleason gear shaping machines for complex gear systems. These capabilities are supported by a CMM machine for precise inspection of components.