Magna Electro Castings Limited announced its unaudited financial results for the quarter and nine months ended 31st December 2025, alongside strategic business decisions including solar power investments and facility expansion. The Board of Directors approved these developments during their meeting held on 10th February 2026.

Financial Performance Overview

The company's financial performance for the quarter ended 31st December 2025 demonstrated steady operational results across key metrics.

Nine-Month Performance Analysis

For the nine months ended 31st December 2025, the company achieved revenue from operations of Rs. 14,882.64 lakhs compared to Rs. 13,093.87 lakhs in the corresponding previous period, representing a growth of 13.66%. Net profit for the nine-month period stood at Rs. 1,581.78 lakhs against Rs. 1,830.01 lakhs in the previous year.

Strategic Solar Power Investment

The Board approved an equity investment in First Energy TN1 Private Limited (FETPL) for procurement of additional 1.1 MW solar power under Group Captive Scheme as required under the Electricity Act, 2003. The investment details include:

The company already holds 14,40,000 equity shares representing 6.25% of FETPL's share capital in relation to the existing solar captive power plant at Sivaganga District. This additional investment aims to comply with the minimum shareholding requirement of 26% by captive users under the Electricity Act, 2003.

New Campus Development

Magna Electro Castings announced the establishment of a new South Campus at SF No. 49, Mullupadi, Kinathukkadavu, Pollachi, Coimbatore – 642109 on company-owned land situated near its existing factory premises. The new campus is designed exclusively for ancillary and allied operational activities supporting the company's existing manufacturing operations, without adding to the manufacturing capacity.

Financial Position and Capital Structure

The company maintains a stable capital structure with paid-up equity share capital of Rs. 423.21 lakhs, consisting of shares with a face value of Rs. 10 each. Reserves and surplus stood at Rs. 13,849.75 lakhs as of 31st December 2025, compared to Rs. 12,033.06 lakhs in the previous year, indicating strengthened financial reserves.

Magna Electro Castings Limited has received credit rating reaffirmation from CARE Ratings Limited on December 26, 2025. The rating agency has maintained its assessment of the company's bank facilities following a comprehensive review of operational and financial performance.

Credit Rating Details

CARE Ratings has reaffirmed the existing ratings for the company's banking facilities based on recent developments and performance metrics. The rating committee conducted its review considering the company's audited results for FY25 and unaudited performance for H1FY26.

Facility Breakdown

The rated facilities encompass a comprehensive banking arrangement across multiple financial institutions. The long-term facilities totaling ₹25.00 crores include term loans and fund-based limits, while short-term facilities worth ₹15.25 crores comprise both fund-based and non-fund based arrangements.

Long-Term Banking Facilities

The term loan component includes ₹15.00 crores from Union Bank of India, structured for repayment through 60 equal monthly installments beginning January 2025. Additionally, cash credit facilities of ₹10.00 crores are distributed between Axis Bank Limited and Union Bank of India, with ₹5.00 crores allocated to each institution.

Short-Term Banking Arrangements

Short-term facilities are primarily concentrated with Union Bank of India and include diverse financial instruments. The fund-based component comprises ₹10.00 crores allocated for foreign bill discounting operations.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating information has been made available on the company's website at www.magnacast.com , ensuring transparency for stakeholders and investors.

Rating Methodology

CARE Ratings maintains the right to conduct periodic surveillance and review of the assigned ratings. The rating agency has indicated that at least one review or surveillance will be conducted annually, with additional assessments possible based on circumstances warranting such evaluation. The ratings are subject to revision, reaffirmation, or withdrawal based on ongoing performance monitoring and material developments affecting the company's creditworthiness.