Simplex Castings Limited reported a 40.5% rise in net profit to ₹2125.91 lakh for the financial year ended March 31, 2026, compared to ₹1513.11 lakh in the previous year. Revenue from operations for the year increased by 18.05% to ₹20,290.29 lakh from ₹17,188.36 lakh in FY25. The company strengthened its position in the railway sector by securing RDSO approval for key railway wagon bogie and cast steel components, positioning itself to benefit from rising investments in railway modernization and freight corridors.

The board approved the audited financial results for the quarter and year ended March 31, 2026. The audit report submitted by M/s Harsh Jain & Associates, Statutory Auditor, carried an unmodified opinion. The company reported an exceptional item of ₹85.90 lakh for the year, attributed to a loss on the sale of plant and machinery. For the quarter ended March 31, 2026, net profit stood at ₹618.30 lakh, while revenue from operations was ₹5,476.28 lakh.

Key Board Decisions

The board approved the sub-division of existing equity shares with a face value of ₹10 each into five equity shares of ₹2 each, subject to shareholder approval. The record date for the split will be determined post-approval. Consequently, the board approved the alteration of the capital clause of the Memorandum of Association to reflect the revised authorized share capital of ₹10,00,00,000 divided into 5,00,00,000 equity shares of ₹2 each.

Management Appointments

The board appointed Mr. Palash Singhania as an Additional Director designated as Non-Executive Independent Director for a term of five years effective May 28, 2026, subject to shareholder approval. Mr. Avinash Hariharno was appointed as an Additional Director and Whole Time Director for a term of five years, ceasing his role as Chief Financial Officer. Mr. Rajesh Kumar Acharya was appointed as the new Chief Financial Officer effective May 28, 2026. Additionally, M/s Sashi Ranjan & Co., Cost Accountants, were reappointed as Cost Auditor for FY 2026-27.

Strategic Outlook

The company is focusing on strengthening cash flows by empanelment on the Invoicemart (TReDS platform) to accelerate receivable realisation. Strategic growth drivers include launching a dedicated Railway Plant, expanding defence manufacturing capabilities, and evaluating inorganic acquisitions in allied casting segments. The company is also targeting the infrastructure casting boom to meet requirements for structural and machinery components.

Financial Performance

The board approved a postal ballot notice to seek shareholder consent for the special business, including the stock split and alteration of the capital clause. M/s Meena Naidu & Associates were appointed as the scrutinizer, and Central Depository Services (India) Limited was appointed as the e-voting agency.

Simplex Castings has received approval from the Research Designs and Standards Organisation (RDSO) for the prototype testing of Cast Steel CASNUB Bogie and its critical components for railway wagon applications. This development marks the company's return to its core railway business and positions it to tap into significant long-term opportunities within the Indian Railways ecosystem. The approval is expected to generate ₹50 Crore in revenue by the end of this financial year and upwards of ₹100 Crore by the end of the next financial year.

RDSO Approval and Scope

The approval has been granted under RDSO's fresh registration process for multiple railway bogie components. The scope includes Cast Steel Side Frames, Cast Steel Bolsters, Centre Pivot Assemblies, and CASNUB 22HS/22HS(M) & 22RFT Bogies. The prototype testing will be conducted in accordance with RDSO specifications and quality requirements. RDSO functions under the Ministry of Railways and is the nodal body responsible for setting technical standards and granting approvals for railway components.

Strategic Implications and Revenue Guidance

Securing this approval enables Simplex Castings to bid for Railway tenders and participate in the expanding domestic railway market. The company's marketing team is actively tracking and bidding on relevant tenders. Historically, the company held a 60-70% market share in cast bogies, and it aims to leverage its established position as a legacy player. The manufacturing facility is currently undergoing capital expenditure to support bogie production at scale. The railway business is expected to be a core revenue contributor for the company going forward.

Management Commentary

Mr. Ketan Shah, Chairman and Executive Director, stated that receiving RDSO approval is an important milestone reflecting the strength of the company's legacy in bogie manufacturing and quality systems. He highlighted that the railway sector presents a significant long-term opportunity supported by increasing investments in infrastructure and freight mobility. The company is focused on scaling its participation in this segment with a renewed emphasis on quality and execution.