Synopsis:
Nelcast posted decent YoY growth in revenue and profitability in Q1 FY26, driven by exports and tractor demand, while advancing operational efficiency and innovation, including its largest-ever 500 kg casting.
During Friday’s trading session, shares of a leading producer of ductile and grey iron castings in India moved up by nearly 15 percent to a record high of Rs. 179.15 on BSE, after the company reported mixed results for Q1 FY26 with a net profit growth of around 56 percent YoY.
At 12:23 p.m., the shares of Nelcast Limited were trading in the green at Rs. 174.4 on BSE, up by around 11.6 percent, as against its previous closing price of Rs. 156.25, with a market cap of Rs. 1,517.3 crores. The stock has delivered positive returns of over 20 percent in the last one year, and has gained by around 19 percent in the last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, Nelcast Limited announced the financial results for Q1 FY26 on Thursday after market hours. Q1 FY26 market a strong growth for the company in net profit and operational margins. A key milestone was the successful development of a ~500 kg single casting, the largest in the company’s history, which has been submitted for customer approval.
For Q1 FY26, Nelcast reported a consolidated revenue from operations of Rs. 332 crores, marking around a 1 percent QoQ slight growth compared to Rs. 330 crores in Q4 FY25, and a year-on-year increase of about 11 percent from Rs. 300 crores recorded in Q1 FY25. This growth was primarily driven by rising demand in the tractor and commercial vehicles segment.
Net profit for the quarter stood at Rs. 12.5 crore, showing a 7 percent QoQ decline from Rs. 13.5 crore, but a robust 56 percent YoY growth compared to Rs. 8 crore in Q1 FY25
Exports surged by 17.3 percent YoY, reaching Rs. 115.4 crore in Q1 FY26, supported by a sustained global demand. Export contribution to total revenue rose from 33 percent in Q1 FY25 to 35 percent in Q1 FY26.
In FY26, Nelcast is focused on driving operational efficiency through improved capacity utilisation and strategic product mix optimisation. The company reported a 24.4 percent YoY growth in EBITDA per Kg, reaching Rs. 14.7 per kg in Q1 FY26, driven by improved operational efficiencies and disciplined cost management. Looking ahead, management remains confident in achieving the EBITDA per Kg target of Rs. 15 for FY26.
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New product development remains a key strategic pillar, laying the groundwork for accelerated growth over the next two years. Management remains confident that the company’s innovation efforts and operational improvements will support sustainable profitability.
The tractor segment is projected to grow by ~7.5 percent YoY, fuelled by strong rural demand, a favourable monsoon, and increased government spending. Additionally, the implementation of TREM V emission norms is anticipated to further boost the sector demand.
Nelcast Limited manufactures grey and ductile castings for the M&HCV and tractor industry segments, while ~30-35 percent of its overall revenues are also generated from export markets. The key products supplied to its M&HCV clients include differential carriers, differential cases, bogie suspension brackets, and conventional brackets, among others.
For the tractor segment, the company’s major products are transmission casing, centre housing, axle housing and hydraulic lift cover. Additionally, the company supplies base plates and brake discs for metro rail projects and the railways, respectively.
Nelcast has an aggregate installed production capacity of 1.6 lakh tonnes per annum, and its factories are located at Ponneri (Tamil Nadu) and Gudur and Pedapariya (Andhra Pradesh).
Written by Shivani Singh
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