Electrosteel Castings Reports Q3FY26 Revenue Drop to ₹1,526 Crores Amid Profit Loss

2 min read Updated on 30 Jan 2026, 05:15 PM

Reviewed by

Radhika SScanX News Team

Overview

Electrosteel Castings Limited announced challenging Q3FY26 results with consolidated total income declining 16.1% to ₹1,526 crores and PAT turning to a loss of ₹22 crores from ₹160 crores profit in Q3FY25. The company's nine-month performance also reflected operational headwinds with total income dropping 19.3% to ₹4,602 crores, attributed to reduced government spending on water infrastructure projects over recent quarters.

*this image is generated using AI for illustrative purposes only.

Electrosteel Castings Limited has announced challenging Q3FY26 financial results, showing significant declines across key performance metrics. The company reported consolidated total income of ₹1,526 crores for Q3FY26, representing a 16.1% year-on-year decline from ₹1,819 crores in Q3FY25. The company recorded a profit after tax loss of ₹22 crores compared to a profit of ₹160 crores in the corresponding quarter of the previous year, primarily attributed to lower government spending on water infrastructure projects over recent quarters.

Q3FY26 Consolidated Financial Performance

The latest quarterly results reveal substantial operational challenges across all major financial indicators. EBITDA declined significantly to ₹88 crores from ₹294 crores in Q3FY25, representing a 70.1% year-on-year drop. The EBITDA margin compressed to 5.8% from 16.2% in the same quarter last year, indicating pressure on operational efficiency and profitability.

Financial Metric:	Q3FY26	Q3FY25	YoY Change	Q2FY26	QoQ Change
Total Income:	₹1,526 crores	₹1,819 crores	-16.1%	₹1,491 crores	+2.3%
EBITDA:	₹88 crores	₹294 crores	-70.1%	₹188 crores	-53.2%
EBITDA Margin:	5.8%	16.2%	-1040bps	12.6%	-684bps
Profit After Tax:	-₹22 crores	₹160 crores	-113.7%	₹78 crores	-127.9%
EPS:	-₹0.35	₹2.59	-113.7%	₹1.27	-128.0%

Nine Months FY26 Performance Overview

The nine-month performance for FY26 also reflects the challenging operating environment. Consolidated total income for 9MFY26 stood at ₹4,602 crores, down 19.3% from ₹5,704 crores in 9MFY25. Despite the revenue decline, the company maintained profitability with PAT of ₹145 crores for the nine-month period, though significantly lower than ₹541 crores achieved in 9MFY25.

Nine Months Metric:	9MFY26	9MFY25	YoY Change	FY25
Total Income:	₹4,602 crores	₹5,704 crores	-19.3%	₹7,443 crores
EBITDA:	₹474 crores	₹961 crores	-50.6%	₹1,159 crores
EBITDA Margin:	10.3%	16.8%	-654bps	15.6%
Profit After Tax:	₹145 crores	₹541 crores	-73.1%	₹710 crores
EPS:	₹2.35	₹8.76	-73.1%	₹11.48

Standalone Financial Results

The standalone financial performance mirrors the consolidated trends with total income of ₹1,290 crores in Q3FY26, declining 23.0% year-on-year from ₹1,675 crores in Q3FY25. Standalone PAT recorded a loss of ₹20 crores compared to a profit of ₹157 crores in the previous year's corresponding quarter. The company sold 1.34 lakh tons of DI Pipes, Fittings and CI Pipes in Q3FY26 compared to 1.39 lakh tons in Q2FY26.

Exceptional Items and Regulatory Compliance

The financial results include an exceptional item of ₹38 crores during the quarter, representing a provision made in compliance with the new labour code. The results were considered and approved during the board meeting held on February 6, 2026, with proper regulatory notifications sent to BSE Limited and National Stock Exchange of India Limited under SEBI regulations.

Future Outlook and Government Initiatives

Despite current challenges, the company remains optimistic about future prospects. The Government of India has allocated ₹67,600 crores for Jal Jeevan Mission in the budget for the next financial year, with a revised outlay of approximately ₹17,000 crores for the current financial year. The company expects execution recovery to gain traction with normalization of government funding and continued policy focus on rural water supply and sustainability initiatives.

Historical Stock Returns for Electrosteel Castings

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.97%	-2.98%	-1.05%	-30.05%	-26.05%	+179.84%

Electrosteel Castings

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Supreme Court Upholds NCLAT Decision Dismissing IBC Petition Against Electrosteel

1 min read Updated on 06 Jan 2026, 10:51 AM

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Radhika SScanX News Team

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Overview

The Supreme Court has upheld the NCLAT's decision to dismiss UV Asset Reconstruction's insolvency petition against Electrosteel Castings, reaffirming that the company cannot be treated as a guarantor for Electrosteel Steels Limited's financial facilities. The ruling also clarifies that Vedanta's resolution plan for ESL does not extinguish all debts against third security providers.

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The Supreme Court has delivered a decisive ruling in favor of Electrosteel Castings by upholding the National Company Law Appellate Tribunal's (NCLAT) decision to dismiss UV Asset Reconstruction Company Limited's petition under the Insolvency and Bankruptcy Code (IBC). The judgment provides comprehensive legal clarity on the company's status and obligations.

Supreme Court Judgment Details

The Supreme Court's judgment dated January 6, 2026, upholds the NCLAT's ruling from January 24, 2024, which dismissed UV Asset Reconstruction's application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The apex court reaffirmed that Electrosteel Castings cannot be treated as a guarantor for financial facilities availed by Electrosteel Steels Limited (ESL).

Legal Milestone:	Details
Supreme Court Judgment:	January 6, 2026
NCLAT Decision:	January 24, 2024
IBC Section:	Section 7
Key Finding:	Company not guarantor for ESL facilities

NCLAT Decision Confirmation

The Supreme Court's ruling validates the NCLAT's comprehensive analysis of the case. The appellate tribunal had originally dismissed UV Asset Reconstruction's application, establishing that Electrosteel Castings could not be held liable as a guarantor for the financial obligations of Electrosteel Steels Limited.

Resolution Plan Impact

The Supreme Court also addressed the implications of Vedanta Limited's Resolution Plan for ESL. The court held that the approval and implementation of this resolution plan does not result in the extinguishment of the entire debt, thereby preserving claims against Third Security Providers. This finding provides important clarity on the scope and limitations of resolution plans under the IBC framework.

Regulatory Compliance

Electrosteel Castings has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's intimation to BSE Limited (Scrip Code: 500128) and National Stock Exchange (Symbol: ELECTCAST) ensures transparency for stakeholders and maintains compliance with regulatory requirements.

Business Implications

This favorable legal outcome removes significant uncertainty that had been affecting the company's operations in the castings, forgings, and fasteners sector. With the Supreme Court's definitive ruling, Electrosteel Castings can continue its business activities without the overhang of potential insolvency proceedings, providing stability for investors and business partners in the small-cap steel casting segment.

Historical Stock Returns for Electrosteel Castings