Alicon Castalloy Ltd, a prominent player in the automotive components industry, has announced significant changes to its leadership team, setting the stage for a smooth transition in its top management.

New CEO-Designate

Sumit Bhatnagar has been appointed as the Chief Executive Officer-Designate of Alicon Castalloy, effective September 22, 2025. Bhatnagar is set to succeed the current CEO, Rajeev Sikand, who will superannuate on March 31, 2026.

Bhatnagar brings a wealth of experience to his new role, with over 26 years in the automotive industry. His expertise spans various domains, including business development, operations, technology transfer, supply chain management, and human resources.

Professional Background

Prior to this appointment, Bhatnagar has held several key positions:

• Group President of ANAND since January 2017
• Managing Director of ANEVOLVE since January 2022
• Member of the Anand Executive Board since 2021
• Head of Group Excellence in Manufacturing since 2022

His previous roles include serving as Senior Vice President and COO of Gabriel India Limited from June 2011 to December 2017, and as Business Head and General Manager at Anand CY Myutec from July 2008 to May 2011.

Educational Qualifications

Bhatnagar holds a BE in Production Engineering from Jawaharlal Nehru Engineering College, Aurangabad, and a PGDBM in Finance and Strategy from the Indian Institute of Management, Kozhikode, which he completed in 2011.

New CHRO Appointment

In addition to the CEO transition, Alicon Castalloy has also appointed Ashish Srivastava as the new Chief Human Resource Officer, effective September 25, 2025. This appointment further strengthens the company's leadership team.

Shareholding and Board Relations

It's worth noting that Sumit Bhatnagar currently holds no shares in Alicon Castalloy and is not related to any of the company's board directors. In contrast, the outgoing CEO, Rajeev Sikand, holds 508,638 shares in the company.

Regulatory Compliance

The company has confirmed that Sumit Bhatnagar is not debarred from holding the office of CEO pursuant to any SEBI order or order of any such authority, ensuring compliance with regulatory requirements.

These strategic appointments and the planned transition demonstrate Alicon Castalloy's commitment to maintaining strong leadership and ensuring continuity in its operations. As the company prepares for this change in leadership, stakeholders will be keenly watching how these new appointments will shape the future direction of Alicon Castalloy in the competitive automotive components industry.

Alicon Castalloy , a leading auto component manufacturer, reported a 5% year-on-year decline in revenue for Q1, amidst challenging global market conditions and evolving trade dynamics. The company's performance reflects both resilience in the face of headwinds and strategic adaptability in a complex operating environment.

Financial Performance

Alicon Castalloy posted revenue of Rs. 419.00 crore in Q1, down from Rs. 440.00 crore in the same quarter last year. Despite the revenue dip, the company showed improvement in profitability metrics:

• EBITDA improved to Rs. 50.00 crore with an 11.90% margin, up from 11.20% in the previous quarter.
• Gross margin stood at 45.90%, a slight decline from 47.50% in Q1 of the previous year, attributed to aluminum price increases and changes in sales mix.
• Pre-tax profit increased by 16% quarter-on-quarter to Rs. 15.00 crore.

Operational Highlights

The company's performance was influenced by several factors:

1. Global Trade Challenges: New U.S. tariffs, including a 25% tariff on Indian goods and an additional 25% penalty tariff for Russia-related trade, are expected to impact export demand.

2. Supply Chain Disruptions: China's restrictions on rare earth material exports have affected the EV industry, particularly impacting motor magnets supply.

3. Domestic Market Dynamics: The Indian automotive industry witnessed modest growth, with passenger vehicles up 3.40% and commercial vehicles up 2.60% year-on-year.

4. Product Mix: Passenger vehicles contributed 39% to revenue, two-wheelers 40%, and commercial vehicles 15%.

5. New Business Wins: Alicon added seven new parts from five customers, including two new logos, spanning structural, ICE, and non-auto businesses.

Strategic Initiatives

Alicon Castalloy is undertaking several strategic measures to navigate the current challenges and position itself for future growth:

1. Leadership Expansion: Appointment of Manish Kapoor as COO and Harshvardhan Gune as Head of Defense, Aerospace, and Railways vertical.

2. Technological Advancements: Integration of digital process controls, AI, and IoT technologies to enhance manufacturing excellence.

3. Sustainability Focus: Operationalization of a captive solar plant in India and installation of solar panels at the European facility.

4. CAPEX Plans: The company maintains its CAPEX target of Rs. 165.00-170.00 crore, focusing on strategic investments to enhance capabilities and drive growth.

Outlook

While facing short-term challenges, Alicon Castalloy remains optimistic about its long-term prospects:

• The company maintains a healthy order book of Rs. 9,100.00 crore.
• Management expects growth in Q2 and Q3, despite current headwinds.
• The focus remains on ramping up volumes with existing customers and capitalizing on new business wins.

Vimal Gupta, Group CFO, commented, "We are carefully monitoring the evolving developments in the macroeconomic environment and are confident that our deep engagement with customers and their growth plans provide comfort that we will see increased volumes going forward."

As Alicon Castalloy navigates through these challenging times, its strategic initiatives and robust order book position it well to capitalize on future opportunities in the automotive and non-automotive sectors.