Steelcast Limited , a leading steel castings manufacturer, has reported robust financial results for the first quarter, showcasing significant growth across key metrics.

Strong Financial Performance

The company's revenue from operations surged by 38% to ₹106.70 crore in Q1, compared to ₹77.40 crore in the same period last year. This impressive growth was accompanied by a substantial improvement in profitability:

• EBITDA increased by 44% to ₹30.00 crore, with margins expanding to 28.10% from 26.90% in Q1 of the previous year.
• Profit After Tax (PAT) saw a remarkable 54% growth, reaching ₹19.90 crore, with margins improving to 18.60% from 16.70% in the previous year.

Balanced Revenue Mix and Improved Capacity Utilization

Steelcast maintained a well-balanced revenue mix in Q1, with domestic sales contributing 46% and exports accounting for 54% of total revenue. The company witnessed a significant improvement in capacity utilization, rising to 53% from 32% in the previous year, reflecting strong demand across both domestic and export markets.

Growth Drivers and Future Outlook

Chairman and Managing Director, Mr. Chetan Tamboli, highlighted several key factors driving the company's growth:

1. Mining and Earthmoving Sectors: These are expected to lead momentum in the current fiscal year.
2. New Component Development: Over three dozen new components are under development in the Ground Engaging Tools (GET) segment.
3. Defense Sector Exports: Initial orders for the defense sector are expected to be shipped this year.
4. Cost Optimization: Plans to commission a 2.4 MW hybrid power plant by March 2026, projected to generate annual cost savings of ₹3.50-4.00 crore.

Market Challenges and Growth Projections

Despite some slowdown due to U.S. tariffs and geopolitical issues, the management projects an 18-20% growth for the full year compared to the previous fiscal year. The company's order book remains robust at ₹80.00 crore as of August 1, 2025.

Strategic Initiatives

Steelcast is focusing on several strategic initiatives to drive future growth:

1. Expanding Product Portfolio: Developing new components across various industries including mining, earthmoving, construction, and defense.
2. Geographical Diversification: Currently serving 16 countries, with plans to add 2-3 more in the next 1-2 years.
3. Value-Added Products: Initiating production of sub-assemblies, moving beyond casting and machining.
4. Sustainability Measures: Implementing a hybrid power plant to reduce energy costs and improve environmental footprint.

Mr. Tamboli expressed confidence in the company's growth trajectory, citing the China Plus One strategy adopted by global OEMs and India's favorable position in the global market as key factors supporting Steelcast's future prospects.

As Steelcast continues to navigate global market dynamics, its strong financial performance and strategic initiatives position it well for sustained growth in the coming years.

Steelcast Limited , a leading player in the casting business, has reported robust financial results for the first quarter of fiscal year 2026, while simultaneously unveiling ambitious growth plans for the future.

Q1 FY26 Financial Highlights

The company's unaudited financial results for the quarter ended June 30, 2025, showcase significant year-over-year growth:

Steelcast's performance in Q1 FY26 demonstrates strong growth across all key financial metrics. The company's net sales surged by 37.8% year-over-year, while profit after tax saw an impressive increase of 53.8%.

Strategic Growth Initiatives

In addition to its strong quarterly performance, Steelcast has outlined several strategic initiatives aimed at achieving double-digit growth in FY26:

1. Sector Expansion: The company plans to capitalize on rising demand in the mining and railway sectors, which are expected to be key growth drivers.

2. New Component Development: Steelcast is focusing on developing approximately 40 new components to drive growth and expand its product portfolio.

3. Global Presence: The company aims to expand its global footprint to over 18 countries in the next 1-2 years, enhancing its international market presence.

4. Green Power Initiatives: Steelcast plans to commission a 2.4 MW hybrid power plant under the group captive model by the end of the current year. This initiative is expected to generate annual power cost savings of approximately ₹3.5 crore to ₹4 crore.

Dividend Announcement

The Board of Directors has declared a first interim dividend for FY 2025-26 at the rate of ₹1.80 per equity share (36% of face value per share of ₹5.00). The record date for this dividend is set as August 8, 2025.

Management Commentary

Chetan M Tamboli, Chairman & Managing Director of Steelcast Limited, commented on the results and future outlook: "Our strong performance in Q1 FY26 sets a positive tone for the year ahead. We are optimistic about our growth prospects, particularly in the mining and railway sectors. Our focus on new component development and global expansion, coupled with our green power initiatives, positions us well to achieve sustainable double-digit growth in FY26."

Steelcast's strategic initiatives and robust financial performance indicate a positive outlook for the company. As it continues to expand its product range and global presence while implementing cost-saving measures, Steelcast appears well-positioned to capitalize on growth opportunities in the casting industry.