Alicon Castalloy Reports 49% QoQ Surge in Q2 PAT Amid Challenging Global Landscape
Alicon Castalloy Ltd announced Q2 FY26 results with total income of Rs. 428.90 crore, up 2.4% QoQ but down 7.7% YoY. EBITDA increased 11.2% QoQ to Rs. 55.50 crore, while PAT surged 49.1% QoQ to Rs. 13.90 crore. The company faced challenges in export markets and the commercial vehicle segment, particularly in the USA. Despite this, Alicon improved its EBITDA margin to 12.9% and secured 7 new parts from 6 customers. The company also announced the appointment of Mr. Sumit Bhatnagar as CEO-Designate, succeeding Mr. Rajeev Sikand in March 2026.
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Alicon Castalloy Ltd , a leading integrated manufacturer of aluminum castings in India, has announced its financial results for the second quarter of fiscal year 2026, showcasing resilience in the face of global challenges.
Financial Highlights
| Metric (in Rs. crore) | Q2 FY26 | Q1 FY26 | QoQ Change | Q2 FY25 | YoY Change |
|---|---|---|---|---|---|
| Total Income | 428.90 | 418.70 | +2.4% | 464.50 | -7.7% |
| EBITDA | 55.50 | 49.90 | +11.2% | 56.80 | -2.3% |
| EBITDA Margin | 12.9% | 11.9% | +100bps | 12.2% | +70bps |
| Profit After Tax | 13.90 | 9.30 | +49.1% | 16.80 | -17.3% |
| PAT Margin | 3.2% | 2.2% | +100bps | 3.6% | -40bps |
Quarter-on-Quarter Performance
Alicon Castalloy demonstrated a strong quarter-on-quarter recovery in Q2 FY26. The company's total income increased by 2.4% to Rs. 428.90 crore, up from Rs. 418.70 crore in the previous quarter. This growth was achieved despite ongoing challenges in international markets, tariff-related impacts, and supply chain uncertainties surrounding rare earth materials and semiconductors.
The company's profitability showed significant improvement, with EBITDA rising by 11.2% to Rs. 55.50 crore, outpacing the topline growth. This enhancement in operational performance was attributed to focused initiatives aimed at increasing value addition, enhancing operational efficiencies, and implementing cost optimization measures.
The most notable improvement was seen in the company's bottom line, with Profit After Tax (PAT) surging by 49.1% quarter-on-quarter to Rs. 13.90 crore. This substantial increase in profitability, despite only a modest rise in revenue, underscores the effectiveness of Alicon's operational strategies and cost management efforts.
Year-on-Year Comparison
When compared to the same quarter of the previous fiscal year, Alicon Castalloy faced some headwinds. Total income decreased by 7.7% year-on-year, primarily due to challenges in the export market and the commercial vehicle segment, particularly with OEM customers in the USA. Despite this, the company managed to partially offset the impact by pivoting towards domestic customers and securing new logos.
The EBITDA margin showed resilience, improving from 12.2% in Q2 FY25 to 12.9% in Q2 FY26, reflecting the company's ability to enhance operational efficiency even in a challenging environment.
Strategic Developments
Alicon Castalloy reported several positive developments during the quarter:
GST Rationalization Impact: The rationalization of GST rates on automobiles in the domestic market has reduced taxation and lowered the cost of ownership for both two-wheelers and four-wheelers. This policy shift has revived end-user sentiment in India, with OEM customers expressing optimism about potential increases in domestic sales volumes.
New Business Wins: The company secured 7 new parts from 6 customers in Q2 FY26, including components for ICE, Carbon Neutral, structural, and non-auto businesses. This diversification strategy aims to broaden the company's customer base and reduce dependence on any single market segment.
Leadership Transition: Alicon announced the appointment of Mr. Sumit Bhatnagar as CEO-Designate, as the current Group CEO, Mr. Rajeev Sikand, prepares to conclude his 21-year tenure in March 2026.
Challenges and Outlook
While showing improvements, Alicon Castalloy continues to navigate a complex global landscape. The company faces ongoing challenges including macroeconomic volatility, tariff uncertainties, shortages of rare earth materials and semiconductors, and muted demand in certain segments. These factors have particularly impacted the company's international business and demand for commercial vehicles from OEM customers in the USA.
Management Commentary
Mr. Rajeev Sikand, Group CEO of Alicon Castalloy, commented on the results: "We are pleased to have sustained momentum into Q2, reporting consolidated revenues of ₹429 crore, an increase of 2.5% QoQ. Importantly, we are pleased to report sharp improvement in profitability, evidenced by growth of 51% and 49% QoQ in PBT and PAT respectively accompanied by all round improvement in margins. This has been achieved on the back of focused initiatives to increase value add, enhance operational efficiencies and drive cost optimisation measures."
Looking ahead, Mr. Sikand expressed confidence in the company's future, stating, "The future-ready platform we have built over the past 21 years at Alicon will, I am certain, be scaled to new heights by the team in the years ahead."
As Alicon Castalloy continues to navigate global challenges, its focus on operational efficiency, cost optimization, and strategic diversification appears to be yielding positive results, positioning the company for potential growth as market conditions improve.
Historical Stock Returns for Alicon Castalloy
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.82% | -2.05% | +7.23% | +35.10% | -30.45% | +199.39% |
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