FOSECOIND - Foseco India

📊 NSE: FOSECOIND 🏢 Chemicals 📅 Last Updated: 12/13/2025 22:09

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Foundry Chemicals & Fluxes, which contributed 100% of the total revenue of INR 52,478 lakh, representing a growth of 9.9% YoY from INR 47,741 lakh.

Geographic Revenue Split

Domestic operations across 21 states contribute 96.47% of turnover, while exports to 12 countries contribute 3.53% of total revenue.

Profitability Margins

Operating Profit Margin improved to 18.7% in 2024 from 17.4% in 2023 (adjusted for one-offs). Net Profit Margin stood at 13.9% in 2024 compared to 15.3% in 2023, impacted by the absence of exceptional gains from land sales.

EBITDA Margin

PBIT margin was 18.7% in 2024, a slight decrease from 19.9% in 2023 due to higher operating expenses which grew 7% to INR 44,468 lakh.

Capital Expenditure

The company invested in manufacturing facility upgrades through revenue expense and capex; however, specific planned INR values for future years are not disclosed.

Credit Rating & Borrowing

The company maintains a Debt-Equity Ratio of 0.00, indicating it is debt-free with no reported borrowing costs.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include chemicals for water-based and solvent-based coatings and fluxes, which are critical for the 100% revenue-contributing Foundry Chemicals segment.

Import Sources

Raw materials are sourced domestically and imported from global group manufacturing locations in various parts of the world.

Capacity Expansion

The company operates 2 national plants in Sanaswadi (Pune) and Puducherry; specific MTPA capacity or planned expansion units are not disclosed.

Raw Material Costs

Raw material landscape remains challenging with occasional price volatility; the company manages this through strategic pricing and a value-driven approach to maintain margins.

Manufacturing Efficiency

Efficiency is driven by a cellular manufacturing structure and Lean philosophy (Kaizen Factory) to standardize processes and reduce waste.

Logistics & Distribution

The company strengthened its distribution network to serve a broader spectrum of foundries, including a successful initiative to cater to smaller foundries.

📈 Strategic Growth

Expected Growth Rate

9.90%

Growth Strategy

Growth will be achieved through the acquisition of a 75% stake in Morganite Crucible (India) Limited (completed Nov 2025), expansion of the product portfolio (e.g., INSTA Coatings), and deepening market penetration into smaller foundries.

Products & Services

Foundry consumables, chemicals, fluxes, and specialized solutions like INSTA water-based and solvent-based coatings for ferrous and non-ferrous castings.

Brand Portfolio

FOSECO

New Products/Services

INSTA Coatings launched in 2024 offer up to a 30% reduction in costs for customers, expected to drive volume growth in the ferrous casting segment.

Market Expansion

Targeting smaller foundries with specialized products and expanding technical service infrastructure to increase customer satisfaction and retention.

Market Share & Ranking

The company is the market leader in most of its focused product lines within the Indian foundry sector.

Strategic Alliances

Acquired 75% of Morganite Crucible (India) Limited from its promoters on November 12, 2025, making it a subsidiary.

🌍 External Factors

Industry Trends

The Indian foundry market is evolving toward green practices, automation, and precision solutions driven by tighter environmental regulations and OEM demands.

Competitive Landscape

Foseco competes as a technology leader; smaller foundries face high costs to upgrade, potentially limiting their competitiveness against Foseco's advanced solutions.

Competitive Moat

Moat is built on a 60-year legacy, proprietary technology formulations, and a solutions-partnering approach that makes FOSECO products indispensable to foundries.