Steelcast Limited , a leading steel castings manufacturer, has reported a robust financial performance for the second quarter of fiscal year 2026 (Q2FY26), despite facing headwinds from US tariff challenges. The company's revenue from operations surged by 42% year-over-year to ₹106.7 crore, up from ₹75.4 crore in Q2FY25.

Financial Highlights

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed impressive growth, increasing by 62% to ₹34.20 crore, with margins expanding by 400 basis points to 32.00%. Profit After Tax (PAT) grew by 75% to ₹23.20 crore, with margins improving to 21.80%.

Revised Guidance and Market Challenges

Despite the strong Q2 performance, Steelcast has revised its FY26 growth guidance from the earlier 18-20% to double-digit growth around 12%. This adjustment comes in response to ongoing US tariff challenges and geopolitical uncertainties affecting export markets.

Chetan Tamboli, Chairman and Managing Director of Steelcast Limited, stated, "While the first half of FY26 has been healthy, we expect a slight moderation in Q3 due to softer demand visibility and near-term geopolitical uncertainties, mainly driven by disruptions in certain export markets."

Competitive Positioning and Future Outlook

Steelcast maintains a strong competitive position despite recent tariff-related challenges. The company's products remain cost-effective compared to Chinese competitors, with prices lower by approximately 5%, 12%, and 13% across three key product categories supplied to the US.

Looking ahead, Steelcast projects a 20% CAGR over the next three years and aims to reach ₹1,000 crore revenue by FY29. The company is actively diversifying its geographic and sectoral footprint to mitigate risks associated with market uncertainties.

Operational Highlights

• Domestic sales contributed 36% of total revenue, while exports accounted for 64% in Q2FY26.
• The US market represents about 30% of Steelcast's total sales.
• Current order book stands at ₹108 crore with capacity utilization at 48%.
• The company is developing over three dozen new components in the Ground Engaging Tools (GET) and construction industry segments.

Sustainability Initiatives

Steelcast is set to commission a 2.4 MW hybrid power project by June 30, 2026, to meet increased volume requirements for FY27. This initiative is expected to enhance cost efficiency and sustainability, generating estimated annual savings of ₹3.5–4 crore.

In conclusion, while Steelcast Limited faces near-term challenges due to global trade dynamics, the company's strong financial performance, competitive positioning, and strategic initiatives position it well for long-term growth in the steel castings industry.

Steelcast Limited , a prominent player in the steel casting industry, has announced impressive financial results for the second quarter, showcasing substantial growth across key metrics.

Financial Highlights

Steelcast has demonstrated a remarkable performance in the second quarter, with significant improvements across all financial parameters:

Profit Growth

The company's net profit surged to ₹232.10 crore, marking a substantial 74.5% increase from ₹133.00 crore in the same quarter of the previous year. This impressive growth in profitability underscores Steelcast's operational efficiency and strong market position.

Revenue Expansion

Steelcast's revenue showed robust growth, reaching ₹1,070.00 crore compared to ₹754.00 crore in the corresponding quarter last year, representing a 41.9% year-on-year increase. This significant revenue growth indicates strong demand for the company's products and successful market strategies.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew to ₹302.10 crore from ₹190.20 crore in the same period last year, registering a 58.8% increase. This growth in EBITDA outpaced the revenue growth, suggesting improved operational efficiency.

Margin Improvement

Steelcast's EBITDA margin expanded to 28.33% from 25.25% year-on-year, an improvement of 308 basis points. This margin expansion indicates the company's ability to manage costs effectively while growing its top line.

The strong financial performance across all key metrics reflects Steelcast's resilience and strategic execution in a competitive market environment. The company's ability to significantly improve its profitability while expanding its revenue base demonstrates its operational strength and market leadership in the steel casting sector.