Nelcast Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, disclosing comprehensive data on its environmental, social, and governance (ESG) performance. The report, filed pursuant to Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlights the company's operational footprint, workforce demographics, and sustainability initiatives. Notably, the entity reported zero monetary or non-monetary fines, penalties, or settlement amounts during the year, indicating full compliance with regulatory standards.

Operational and Financial Overview

The company operates three plants and one office nationally, serving 16 states across India and 13 countries internationally. Exports contributed 29% to the total turnover. For the financial year, the reported turnover was ₹1328.40 crore and net worth stood at ₹596.64 crore. The firm identified material issues such as raw material efficiency and sustainable business practices as opportunities, while noting supply chain disruption from geopolitical issues as a risk with negative financial implications.

Workforce and Grievance Redressal

Nelcast Limited employed a total of 2,100 individuals, comprising 1,390 employees and 710 workers. The workforce included four differently-abled employees and three differently-abled workers. The company recorded 131 grievances from employees and workers during FY26, all of which were resolved with none pending at the close of the year. This marked an increase from the previous year, which saw 130 grievances filed and five pending resolution. No complaints were reported from shareholders, communities, or value chain partners during the current financial year.

Environmental Performance

The company demonstrated a shift towards renewable energy, sourcing 422.40 million MJ from renewable sources compared to 333.35 million MJ in the previous year. Total energy consumption rose to 626.19 million MJ from 586.46 million MJ. Water withdrawal increased to 101,745 kiloliters from 98,476 kiloliters. The report detailed greenhouse gas emissions, with total Scope 1 emissions at 2,913 metric tonnes of CO2 equivalent and Scope 2 emissions at 63,435 metric tonnes. The company has installed a 1 MW in-house solar plant and is sourcing renewable energy for all three plants through group captive mode.

Governance and Compliance

The Board of Directors oversees sustainability issues through the Risk Management Committee and the Corporate Social Responsibility Committee. While the company has policies addressing the nine principles of the National Guidelines on Responsible Business Conduct (NGRBC), it noted that these policies do not fully extend to value chain partners as of March 31, 2026. Independent assessment of the BRSR Core was not undertaken. The company confirmed compliance with applicable environmental laws, including the Water Act and Air Act, and reported no instances of non-compliance requiring corrective action.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE189I01024/95f84200bc314f6f.pdf

Nelcast reported a 29.9% increase in net profit to ₹48.43 crore for the financial year ended March 31, 2026, driven by improved operational efficiency and higher volumes. Revenue from operations grew 6.1% to ₹1,328.4 crore, supported by robust domestic demand in the commercial vehicle and tractor segments. EBITDA increased by 17.8% to ₹124.46 crore, with margins improving to 9.3% from 8.3% in the previous year.

The company’s production volume increased to 91,305 metric tonnes from 83,637 metric tonnes in the previous year, registering a growth of approximately 9%. Export turnover for the year stood at ₹384.91 crore, contributing about 29% of the total turnover. The board has recommended a dividend of 35%, or ₹0.70 per share, for the financial year 2025-26, subject to shareholder approval.

Financial Performance

The company’s profitability improved significantly during the year, with EBITDA per kilogram rising to ₹13.6 compared to ₹12.6 in the previous year. This reflects the benefits of a better product mix, improved operating leverage, and sustained cost optimisation initiatives. Return on Net Worth improved to 8.1% from 6.7%, while the debt-to-equity ratio improved to 0.4x from 0.5x.

Operational Highlights

During the year, the company secured several new business wins that will support a significant ramp-up of its Pedapariya facility. These products represent a move towards higher-value, more technically complex products, supporting margin expansion. Approximately 70% of the company’s electricity requirements are currently met through renewable energy sources.

Outlook

The outlook for FY 2026-27 remains positive, supported by continued momentum in infrastructure spending, healthy replacement demand in the commercial vehicle segment, and improving rural demand. Domestic demand, particularly in the commercial vehicle segment, is expected to remain supportive, while export markets are showing encouraging signs of recovery.