Steelcast reports 19% net profit rise in Q1FY27, approves ₹120 crore capex
Steelcast reported a 19.3% year-on-year increase in Q1FY27 net profit to ₹237.12 crore, driven by a 17% rise in revenue to ₹1,248.20 crore. The Board approved a ₹120 crore investment for an 8,500-ton capacity addition and declared an interim dividend of ₹0.45 per share.
*this image is generated using AI for illustrative purposes only.
Steelcast reported a year-on-year increase in standalone net profit to ₹237.12 crore for the quarter ended June 30, 2026 (Q1FY27), up from ₹198.83 crore in the corresponding period of the previous year. The growth was driven by a rise in revenue from operations to ₹1,248.20 crore from ₹1,066.86 crore, while EBITDA expanded to ₹317.75 crore from ₹266.61 crore. On July 29, 2026, the company’s Board of Directors approved these results, declared an interim dividend of ₹0.45 per equity share, and sanctioned a ₹120 crore investment to set up a greenfield foundry with an additional capacity of 8,500 tons.
Financial Performance Overview
Steelcast’s top-line growth was supported by increased net sales, which rose 17% year-on-year. The company maintained operational efficiency, with EBITDA margin holding steady at approximately 25.5% compared to the prior year quarter. Net sales grew to ₹1,248.20 crore from ₹1,066.86 crore, while other income increased slightly to ₹32.45 crore from ₹27.22 crore. Total income for the quarter stood at ₹1,280.65 crore.
| Metric | Q1FY27 (₹ Cr) | Q1FY26 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 1,248.20 | 1,066.86 | +17.0% |
| EBITDA | 317.75 | 266.61 | +19.2% |
| Net Profit | 237.12 | 198.83 | +19.3% |
Capital Expenditure and Expansion
The Board approved the establishment of a greenfield foundry to add 8,500 tons to its existing installed capacity of 29,000 tons. This expansion, estimated at ₹120 crore, is funded through internal accruals and aims to be completed by March 31, 2028. The company cited increasing customer demand as the primary rationale, projecting capacity utilization to reach 90% by March 31, 2029, up from a projected 63% for FY27. This move aligns with Regulation 30(6) read with Para B(3) of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Dividend Declaration
Shareholders will benefit from a first interim dividend for FY27 of ₹0.45 per equity share of Re. 1 each, representing a 45% payout on face value. The record date for this dividend is fixed as August 7, 2026, with payment scheduled on or before August 28, 2026. This declaration follows the company’s strong cash flow performance and strategic position in the casting business segment.
What the Numbers Show
The simultaneous approval of significant capital expenditure and a dividend payout indicates management’s confidence in future demand visibility and current liquidity. With existing capacity utilization projected at only 63% for FY27, the new facility suggests an aggressive stance on capturing market share ahead of anticipated demand spikes. The maintenance of EBITDA margins despite revenue growth reflects disciplined cost control in materials and manufacturing expenses.
Historical Stock Returns for Steelcast
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.72% | -0.49% | +1.68% | +53.59% | +24.98% | +408.49% |
How might the ₹120 crore greenfield expansion impact Steelcast's capacity utilization rates and competitive positioning by FY29?
What are the primary end-use sectors driving the 17% revenue growth, and is this demand expected to sustain through the next fiscal year?
Given the current 63% projected utilization for FY27, what specific market signals prompted management to accelerate capital expenditure now rather than later?
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