Nelcast Reports Improved Profitability And Strong FY26 Results

21 May 2026 CW Team

EBITDA margin for FY26 stood at 9.3 per cent, with the fourth-quarter margin at 9.4 per cent despite higher input costs and softer exports late in the period. EBITDA per kilogram (kg) averaged Rs 13.6 in FY26 compared with Rs 12.6 in FY25, reflecting an improving product mix and higher-value parts. The fourth-quarter EBITDA per kg moderated to Rs 13.5 as raw material prices increased. Operational initiatives and new product development contributed to margin expansion over the course of the year.

The company strengthened its balance sheet through disciplined debt reduction, with debt to equity falling to zero point four times from zero point five times in March 2025. Return on equity improved to eight point one per cent and return on capital employed to 10.8 per cent for FY26, up from six point seven per cent and nine per cent respectively in the prior year. Management reported a ramp-up at the Pedapariya plant and a pickup in exports, particularly to the United States, which supported the improved return profile. Improved utilisation and a stronger product mix were noted as key contributors to the performance.

Looking ahead the company expects a constructive demand backdrop while remaining mindful of near-term uncertainties such as labour availability and geopolitical developments. Nelcast supplies grey and ductile castings to medium and heavy commercial vehicle and tractor segments and generates around 30 to 35 per cent of revenues from exports. The group has an aggregate installed production capacity of 160,000 tonne (t) per annum across plants at Ponneri, Gudur and Pedapariya.

Nelcast reported improved profitability for the year ended March 31, 2026, with consolidated revenue of Rs 13.424 billion (bn) and fourth-quarter revenue of Rs 3.712 bn. All crore figures have been converted to million (mn) and billion (bn) equivalents for clarity. The company recorded EBITDA of Rs 1.245 bn for FY26, up 17.8 per cent year on year, and fourth-quarter EBITDA of Rs 349 mn. Profit after tax for the year rose to Rs 484 mn, an increase of 29.9 per cent on the prior year, driven by better utilisation and cost discipline. EBITDA margin for FY26 stood at 9.3 per cent, with the fourth-quarter margin at 9.4 per cent despite higher input costs and softer exports late in the period. EBITDA per kilogram (kg) averaged Rs 13.6 in FY26 compared with Rs 12.6 in FY25, reflecting an improving product mix and higher-value parts. The fourth-quarter EBITDA per kg moderated to Rs 13.5 as raw material prices increased. Operational initiatives and new product development contributed to margin expansion over the course of the year. The company strengthened its balance sheet through disciplined debt reduction, with debt to equity falling to zero point four times from zero point five times in March 2025. Return on equity improved to eight point one per cent and return on capital employed to 10.8 per cent for FY26, up from six point seven per cent and nine per cent respectively in the prior year. Management reported a ramp-up at the Pedapariya plant and a pickup in exports, particularly to the United States, which supported the improved return profile. Improved utilisation and a stronger product mix were noted as key contributors to the performance. Looking ahead the company expects a constructive demand backdrop while remaining mindful of near-term uncertainties such as labour availability and geopolitical developments. Nelcast supplies grey and ductile castings to medium and heavy commercial vehicle and tractor segments and generates around 30 to 35 per cent of revenues from exports. The group has an aggregate installed production capacity of 160,000 tonne (t) per annum across plants at Ponneri, Gudur and Pedapariya.

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