STEELCAS - Steelcast
📢 Recent Corporate Announcements
Steelcast Limited has scheduled a virtual interaction with investors and analysts for March 9, 2026. The company will be participating in the 'Bharat Connect Conference: Rising Stars' hosted by Arihant Capital. Management intends to discuss publicly available information and has stated that no unpublished price sensitive information (UPSI) will be shared. This is a standard regulatory disclosure regarding institutional engagement.
- Virtual meeting scheduled with investors and analysts on Monday, March 9, 2026.
- Participation in the 'Bharat Connect Conference: Rising Stars' organized by Arihant Capital.
- Interaction will strictly adhere to publicly available documents and information.
- Disclosure made under Regulation 30(6) of SEBI (LODR) Regulations, 2015.
Steelcast Limited reported a resilient Q3 FY26 with PAT growing 7.17% YoY to ₹20.59 crores, despite a 3.08% decline in revenue to ₹97.4 crores. The company achieved significant margin expansion, with EBITDA margins rising 297 basis points to 32.04% due to operational efficiencies and lower input costs. Management has provided a strong outlook, guiding for an 11% growth in FY26 and a 20% CAGR over the next three years, supported by the development of 144 new parts. Capacity utilization is projected to scale from the current 46% to 90% by FY29.
- Q3 FY26 PAT increased 7.17% YoY to ₹20.59 Cr, while EBITDA margins reached a high of 32.04%.
- Management maintains a 20% CAGR growth guidance for the next 3 years with a target of 90% capacity utilization by FY29.
- Steelcast products remain 5% to 13% more price-competitive than Chinese offerings in the US market despite tariff concerns.
- A 2.4-MW hybrid power plant project is expected to be commissioned by June 2026, yielding annual savings of ₹3.5-4 Cr.
- Exports contributed 63% of total revenue, with plans to increase EU market share to 20% in the next fiscal year.
Steelcast Limited has scheduled an earnings conference call on January 30, 2026, at 6:00 PM IST to discuss its Q3 and 9M FY26 financial results. The management team, including the Chairman and CFO, will provide updates on the company's performance in the steel and alloy steel casting segments. This call offers investors an opportunity to gain insights into the company's engagement with global OEMs across sectors like mining and earth moving.
- Earnings conference call scheduled for January 30, 2026, at 6:00 PM IST.
- Discussion to cover unaudited financial results for Q3 and 9M ended December 31, 2025.
- Top management including Chairman Chetan Tamboli and CFO Subhash Sharma to lead the call.
- Company caters to diverse sectors including Mining, Earth Moving, and Thermal Power.
Steelcast Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the period ended December 31, 2025. The company's Registrar and Share Transfer Agent, Bigshare Services Pvt Ltd, confirmed that no securities were received for dematerialization during this quarter. As a result, no physical certificates required mutilation or cancellation, and no changes were made to the register of members in this regard. This is a standard administrative filing required for all listed companies in India.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Registrar Bigshare Services Pvt Ltd confirmed zero securities received for dematerialization
- No physical share certificates were mutilated or cancelled during the reporting period
- Confirms adherence to SEBI (Depositories and Participants) Regulations, 2018
Steelcast Limited has informed the stock exchanges that its trading window for dealing in company securities will be closed starting January 1, 2026. This action is in compliance with SEBI Prohibition of Insider Trading Regulations ahead of the announcement of financial results. The closure applies to all designated persons and their immediate relatives for the quarter and nine months ending December 31, 2025. The window will reopen 48 hours after the financial results are officially declared to the public.
- Trading window closure begins on January 1, 2026, for designated persons.
- Closure pertains to the Unaudited Financial Results for the quarter and nine months ending December 31, 2025.
- The window will remain closed until 48 hours after the results are declared.
- The specific date for the Board Meeting to approve results will be announced separately.
Financial Performance
Revenue Growth by Segment
Overall revenue from operations declined 8.21% from INR 409.81 Cr in FY24 to INR 376.17 Cr in FY25 due to cyclical shifts. However, Q2FY26 showed a strong recovery with revenue of INR 106.7 Cr, representing a 42% YoY growth from INR 75.4 Cr in Q2FY25. The mining and earth-moving segment remains the primary driver, historically contributing ~77% of revenue.
Geographic Revenue Split
The company serves both domestic and export markets. Export sales witnessed a decline in FY24 and Q1FY25 due to moderated global demand, though specific regional percentages for the current period are not disclosed. The company is actively expanding into North American railroad markets.
Profitability Margins
Operating margins remained stable at 29.38% in FY25 compared to 29.25% in FY24. PAT margin for FY24 was 18.30%. In Q2FY26, the PBT margin reached 29.0%, up from 23.7% in Q2FY25, driven by higher volumes and process efficiencies.
EBITDA Margin
EBITDA margin improved to 32.0% in Q2FY26, a 408 bps increase from 28.0% in Q2FY25. Absolute EBITDA for Q2FY26 was INR 34.2 Cr, up 62% YoY from INR 21.1 Cr.
Capital Expenditure
The company invested in process improvement, debottlenecking, and renewable energy (RE) power projects in FY24. Cash flow from investing activities was INR 57.6 Cr in FY25 and INR 32.8 Cr in H1FY26, primarily directed toward enhancing production capabilities.
Credit Rating & Borrowing
CARE Ratings reaffirmed 'CARE A-; Stable / CARE A2+' in August 2025. The company maintains a strong solvency position with total debt to gross cash accruals (TDGCA) of 0.42x in FY23 and low working capital utilization (~9% as of June 2025).
Operational Drivers
Raw Materials
Steel scrap and alloys (implied by steel price trends), which are the primary inputs for steel and alloy-steel castings.
Import Sources
Not specifically disclosed, though the company operates out of Bhavnagar, Gujarat, and sources materials for its 29,000 TPA capacity.
Capacity Expansion
Current installed capacity is 29,000 TPA. Capacity utilization for FY26 is expected to be 53%, revised downward from an earlier guidance of 59% due to tender delays.
Raw Material Costs
Materials consumed accounted for 17.7% of revenue in Q2FY26, down from 24.2% in Q2FY25. Margins benefited from a decreasing trend in steel prices during FY24.
Manufacturing Efficiency
75% of castings are shipped as fully machined, increasing value-add and margins. The company uses No-Bake and Shell Moulding techniques for manufacturing excellence.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
The company targets a 20% CAGR over the next three years through diversification into new geographies and sectors like North American railroads. It is shifting focus away from the bureaucratic defense sector to faster-moving global markets and increasing the share of high-margin fully machined castings.
Products & Services
Steel and alloy-steel castings ranging from 5 Kgs to 2,500 Kgs, used in earth-moving equipment, mining, construction, railways, steel, cement, and locomotives.
Brand Portfolio
Steelcast Limited.
New Products/Services
Development of new parts for the North American railroad OEM and expansion into 4-5 new industrial segments.
Market Expansion
Active exploration of new geographies and customer segments, particularly in the export market for railroad components.
Market Share & Ranking
Described as a 'frontrunner' in the steel and alloy-steel castings industry in India.
Strategic Alliances
Long-term supply agreement with a North American railroad OEM.
External Factors
Industry Trends
The industry is moving toward 'ready-to-use' fully machined castings. Steelcast is positioned well with 75% of its output already meeting this standard.
Competitive Landscape
Operates in a competitive and cyclical industry with players in the castings and forgings segment.
Competitive Moat
65 years of manufacturing experience, specialized No-Bake and Shell Moulding processes, and long-term associations with major global OEMs provide a sustainable competitive advantage.
Macro Economic Sensitivity
Highly sensitive to infrastructure spending and global mining cycles. A slowdown in these sectors directly impacts the demand for heavy castings.
Consumer Behavior
Shift in OEM preference toward suppliers who can provide end-to-end machined components rather than raw castings.
Geopolitical Risks
Trade barriers or global economic slowdowns affecting export demand, as seen in the subdued performance of FY24.
Regulatory & Governance
Industry Regulations
Subject to industrial manufacturing standards and pollution control norms typical for steel foundries.
Environmental Compliance
The company has invested in renewable energy projects to align with sustainability goals and reduce power costs.
Taxation Policy Impact
Direct taxes paid in FY25 amounted to INR 24.3 Cr.
Risk Analysis
Key Uncertainties
Cyclicality of end-user industries (mining/construction) and volatility in raw material prices could impact margins by 3-5% if not managed.
Geographic Concentration Risk
Significant exposure to the Indian market and a growing but concentrated export focus on North America.
Third Party Dependencies
High dependency on a few key customers in the mining and earth-moving sectors.
Technology Obsolescence Risk
Technological threats are monitored; the company uses advanced No-Bake and Shell Moulding to stay competitive.
Credit & Counterparty Risk
Receivables stood at 3.11 months in FY25, up from 2.73 months in FY24, indicating a slight elongation in the credit cycle.