Synopsis:
Thaai Casting projects strong growth, aiming for Rs. 170–180 crore revenue in FY26 and Rs. 270–280 crore in FY27, doubling FY25 revenue.
This micro-cap auto ancillary Stock, engaged in high-precision die casting, nitriding, and gear shaping, driving innovation and growth across the automotive and wind energy sectors in India, is in focus after the management expects revenue growth of 130 percent to reach Rs. 270–280 crores in FY27.
With a market capitalization of Rs. 254.43 crore, the shares of Thaai Casting Limited were currently trading at Rs. 110 per equity share, up nearly 1.06 percent from its previous day’s close price of Rs. 108.85.
Revenue and Margin Guidance
Thaai Casting Limited has shared its revenue guidance for the coming years. The company has expectations for revenue of Rs. 170–180 crores in FY26, with a projected 40 percent year-on-year growth in FY27, implying Rs. 230–240 crores.
However, management notes that reaching Rs. 270–280 crores would be an aggressive target. This marks strong growth compared to FY25 revenue of Rs. 122 crore, showing a projected growth rate of around 130 percent over two years.
At peak potential, the die casting segment can generate Rs. 220–240 crores with the current setup. The nitriding business is expected to contribute Rs. 24 crores annually once all six furnaces are operational from FY27. The new gear shaping (wind) facility is projected to add Rs. 40–45 crores per year, starting with a full-year revenue contribution in FY27.
The management has reiterated its EBITDA margin guidance of approximately 23–25 percent going forward. This is expected to be supported by the growing contribution from high-margin service segments such as nitriding and gear shaping.
Capacity Expansion & Capex
The company is expanding its production capacity across key areas. In die casting, capacity is increasing from 2,500 MT to 4,500 MT with the addition of a new 1,300-ton machine, capable of handling parts up to 10 kg.
In nitriding, it currently operates one commercial furnace and is validating two more. Each furnace can generate around Rs. 35 lakhs per month. Three additional furnaces are planned by January 2026, aiming for six in total with an annual revenue potential of Rs. 24 crores.
For gear shaping in wind energy, the company is investing Rs. 100 crores, including an air-conditioned facility, with expected annual service revenue of Rs. 40–45 crores, without raw material inventory.
Order Book
As of October 31, 2024, Thaai Casting Limited has a robust total order book valued at Rs. 386.83 crores. The execution timeline for fulfilling these orders ranges from 60 to 80 months, indicating a strong and sustained revenue pipeline over the coming years.
Capacity Utilization
The company’s current capacity utilization has improved to around 50-55 percent, up from 40-45 percent, with a target to reach full utilization by the end of FY26. The upcoming wind facility is progressing as planned, aiming for commissioning by January 2026. All major equipment has been ordered from Europe (Austria and Germany), and advance payments have been made. The remaining capital expenditure, covering machines and construction, is estimated at around Rs. 100 crores.
Company Overview
Thaai Casting Limited was established in 2010 and is a precision engineering company based in Sriperumbudur, Tamil Nadu, specializing in high-pressure die casting, machining of ferrous and non-ferrous components, and advanced heat treatment solutions such as induction heating, quenching, gas nitriding, and gear shaping
Thaai Casting Limited is engaged in making important metal parts for vehicles and windmills. It uses aluminum die casting to make engine mounts, transmission parts, and steering parts. The company also does precise metal cutting and heat treatments to make parts stronger and more reliable for its customers.
Thaai Casting Limited serves a strong customer base of blue-chip OEMs, including Hyundai, Kia, Maruti Suzuki, PSA Group, Tata Motors, Mahindra, Ashok Leyland, Toyota, JCB, Adani Wind, and GEV Wind Power, reflecting its credibility and capability in delivering high-quality components across the automotive and industrial sectors.
Coming into financial highlights, Thaai Casting Limited’s revenue has increased from Rs. 48 crore in H2 FY24 to Rs. 69 crore in H2 FY25, which has grown by 43.75 percent. The net profit has decreased by 25 percent from Rs. 8 crore in H2 FY24 to Rs. 6 crore in H2 FY25.
In terms of return ratios, the company’s ROCE and ROE stand at 15.6 percent and 14.2 percent, respectively. Thaai Casting Limited has an earnings per share (EPS) of Rs. 4.78, and its debt-to-equity ratio is 1.12x.
Written By – Nikhil Naik
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