Electrosteel Castings Limited has published its audited financial results for the quarter and year ended 31 March 2026. The company reported a sharp year-on-year decline in key profitability metrics for Q4 FY26. On a consolidated basis, net profit fell to ₹16 crore from ₹168 crore in the same quarter of the previous year. Revenue from operations for the quarter stood at ₹1,493 crore compared to ₹1,701 crore in the corresponding prior-year period. EBITDA declined to ₹99 crore from ₹198 crore, with the EBITDA margin contracting to 6.5% from 11.4%. The company attributed the decline in total income to a slowdown in domestic demand resulting in lower sales volumes.

The following table summarises the consolidated quarterly performance:

Management Commentary and Outlook

During the earnings conference call held on 18 May 2026, management noted that FY 25-26 was a challenging year for the water infrastructure sector, primarily due to slower execution of projects under the Jal Jeevan Mission (JJM) caused by delays in fund disbursement. Sales volume of DI Pipe, Fittings, and CI Pipe during Q4 FY26 stood at 1.48 lakh tons, down 21% year-on-year. For the full year, sales volume was 5.84 lakh tons, a 25% decline from the previous year.

However, exports performed well, with volume increasing by 7% in FY 2025-26, largely contributed by the Middle East. Management expressed optimism regarding the approval of Jal Jeevan Mission 2.0, which has a budget outlay of ₹8.69 lakh crores up to December 2028. The company expects demand to restore by early Q2 of the current financial year and targets a dispatch of approximately 7 lakh tons for FY27. Management also guided for a consolidated EBITDA margin of 13%-14% for the year.

Board Decisions and Dividend

At its board meeting held on 18 May 2026, the company approved the audited consolidated and standalone financial results for FY26. The Board recommended a final dividend of ₹0.90 per equity share of face value ₹1 each for FY2025-26, subject to shareholder approval. The estimated payout amounts to ₹5563.66 lakhs. Additionally, the Board approved the re-appointment of Mr. Uddhav Kejriwal as Whole-time Director and revised the tenure of Mrs. Priya Manjari Todi. Mr. Rajkumar Khanna was appointed as Chairman of the Board.

Strategic Expansion and Audit Qualifications

The Board approved the company's entry into the Industrial Paints & Protective Coatings market, targeting an industry size of ₹29,000 crores growing at 10% CAGR. The estimated investment is ₹80-100 crore to be made in a phased manner. Meanwhile, Statutory Auditors Lodha & Co LLP issued a qualified opinion on the financial results, citing two pending matters. The first relates to the Parbatpur coal block cancellation and adjustments required in respect of claims received and the carrying value of property, plant and equipment, capital work in progress, inventory, and other account balances. The second concerns the company's investment in ESL Steel Limited, the pledge of which was invoked by ESL's lenders, subsequently set aside by the Calcutta High Court, along with a mortgage of land at the Elavur plant in favour of one of ESL's lenders whose rights were assigned to another party that has taken symbolic possession — a matter currently pending before DRAT and the Madras High Court.

Electrosteel Castings Limited has announced the successful completion of its postal ballot process, with shareholders overwhelmingly approving the re-appointment of Mr. Sunil Katial as Whole-time Director and Chief Executive Officer. The company submitted comprehensive compliance documents to both BSE Limited and National Stock Exchange of India Limited on 13 April, 2026, fulfilling its obligations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Postal Ballot Results Overview

The postal ballot process was conducted entirely through electronic voting (e-voting) facilitated by National Securities Depository Limited (NSDL). The e-voting period remained open from 14 March, 2026 at 9:00 a.m. IST and concluded on 12 April, 2026 at 5:00 p.m. IST. Shareholders holding shares as on the cut-off date of 6 March, 2026 were entitled to participate in the voting process.

Voting Results and Participation

The special resolution for re-appointing Mr. Sunil Katial (DIN: 07180348) as Whole-time Director and CEO received strong shareholder support. Out of the total eligible shares of 618184591, a total of 374269231 votes were polled, representing a participation rate of 60.54%.

Category-wise Voting Pattern

The voting pattern across different shareholder categories demonstrated varying levels of participation and support:

Promoter and Promoter Group: Achieved 100.00% participation with all 285679231 shares voting in favour of the resolution, showing complete alignment with the proposal.

Public Institutions: Recorded 65.88% participation rate with 80946289 votes polled out of 122877836 eligible shares. Of these, 76.94% voted in favour while 23.06% voted against the resolution.

Public Non-Institutions: Showed limited participation at 3.65% with 7643711 votes polled from 209627524 eligible shares. However, this category demonstrated strong support with 98.64% voting in favour.

Compliance and Documentation

Ms. Rashmi Bihani of M/s. Bihani Rashmi & Co., Chartered Accountants, served as the appointed Scrutinizer for the postal ballot process. The scrutinizer submitted a comprehensive report dated 13 April, 2026, confirming the fair and transparent conduct of the e-voting process. The votes were unblocked on 13 April, 2026 at 11:30 a.m. IST in the presence of two independent witnesses.

The company has hosted the complete results along with the Scrutinizer's Report on its official website and NSDL's platform, ensuring transparency and accessibility for all stakeholders. This postal ballot process demonstrates strong shareholder confidence in the company's leadership continuity under Mr. Sunil Katial's guidance as CEO.