Simplex Castings Reports 31% PAT Growth in 9MFY26 with Strong Order Pipeline
Simplex Castings Limited delivered outstanding nine-month performance for FY26 with revenue growing 41.40% to ₹148.14 crores and PAT increasing 31% to ₹15.08 crores. The company secured high-value trial orders exceeding 500MT from BHEL and other major clients, while successfully completing fund raising of ₹50.15 crores to support growth initiatives including re-entry into railway bogies business where it historically held over 60% market share.
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Simplex Castings Limited announced its comprehensive financial results for the nine months ended December 31, 2025 (9MFY26), reporting exceptional growth driven by strong execution and robust order pipeline. The precision metallurgy company demonstrated significant improvement across key financial metrics while maintaining its strategic focus on infrastructure, railways, and energy sectors.
Outstanding Nine-Month Performance
The company delivered remarkable financial performance for 9MFY26, with revenue reaching ₹148.14 crores compared to ₹104.79 crores in the corresponding period last year. This represents a substantial year-on-year growth of 41.40%, reflecting strong demand across core business verticals.
| Financial Metrics: | 9MFY26 | 9MFY25 | YoY Growth (%) |
|---|---|---|---|
| Revenue: | ₹148.14 crores | ₹104.79 crores | 41.40% |
| Total Income: | ₹150.15 crores | ₹105.64 crores | 42.12% |
| EBITDA: | ₹26.51 crores | ₹23.24 crores | 14.07% |
| PBT: | ₹20.15 crores | ₹14.66 crores | 37.45% |
| PAT: | ₹15.08 crores | ₹11.55 crores | 30.56% |
| EPS: | ₹20.05 | ₹16.04 | Improved |
The company's EBITDA margin stood at 17.90% for 9MFY26 compared to 22.17% in the previous year, while PAT margin was recorded at 10.18% versus 11.02% in 9MFY25. Despite margin compression, the absolute profit growth demonstrates strong operational leverage.
Strategic Growth Initiatives and Market Position
According to Mr. Ketan Shah, Promoter, Chairman and Executive Director, the company remains on track to achieve its stated guidance for FY26. The management highlighted strong demand visibility across core verticals including steel, railways, and thermal power plant segments. Recent achievements include securing high-value trial orders exceeding 500MT from BHEL and other prominent clients like Mazgaon Docks and Gaja Engineering.
| Strategic Highlights: | Details |
|---|---|
| Trial Orders Secured: | More than 500MT from BHEL and others |
| Key Clients: | Mazgaon Docks, Gaja Engineering |
| Market Position: | Leading precision metallurgy company |
| Historical Railway Market Share: | More than 60% at peak |
The company successfully completed a fund raising initiative, providing financial flexibility to pursue the next phase of growth. This includes plans to re-enter the legacy railway bogies business, where Simplex historically commanded more than 60% market share at its peak.
Fund Raising and Corporate Actions
The Board approved a significant fund raising proposal to issue equity shares worth up to ₹50.15 crores through preferential allotment. The company plans to issue up to 1,015,182 equity shares of face value ₹10 each to non-promoter investors, with major investors including India Emerging Giants Fund Limited and Surya Jagdishchand Gorji.
| Fund Raising Details: | Specifications |
|---|---|
| Total Fund Target: | Up to ₹50.15 crores |
| Number of Shares: | Up to 1,015,182 equity shares |
| Face Value: | ₹10 per share |
| Type of Issue: | Preferential Issue |
| Post-Issue Shareholding: | 11.55% for all allottees combined |
An Extraordinary General Meeting has been scheduled for March 2, 2026, to be conducted through video conferencing to seek shareholders' approval for the fund raising proposal and other Board-approved matters.
Operational Excellence and Financial Discipline
The management emphasized its commitment to strengthening financial discipline and internal processes. Key initiatives include balance sheet deleveraging, faster cash conversion, and operational streamlining. The company's empanelment on Invoicemart (TReDS) represents a strategic step toward quicker receivable realization at significantly lower cost of funds while avoiding incremental debt.
| Operational Initiatives: | Focus Areas |
|---|---|
| Financial Strategy: | Balance sheet deleveraging |
| Cash Management: | Faster conversion cycles |
| TReDS Platform: | Invoicemart empanelment |
| Cost Optimization: | Lower funding costs |
The company has scheduled a conference call for February 10, 2026, at 4:00 PM IST, led by Arihant Capital, to discuss the financial results and strategic outlook with investors and analysts.
Historical Stock Returns for Simplex Casting
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.64% | +8.85% | +8.82% | +28.29% | +105.09% | +2,099.53% |
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