Nelcast Limited has announced that it received credit rating reaffirmation from ICRA with an improved outlook revision. The rating agency has reaffirmed the company's credit ratings across multiple financial instruments while upgrading the outlook to Positive from Stable, signaling enhanced confidence in the company's financial prospects.

Rating Details and Instrument-wise Breakdown

ICRA has maintained the total rated amount at Rs. 600.00 crores while making specific adjustments to individual instrument categories. The rating action covers various types of financial instruments including long-term and short-term facilities.

Key Rating Highlights

The most significant development in this rating action is the outlook revision from Stable to Positive across long-term instruments. This change reflects ICRA's improved assessment of Nelcast's credit profile and future prospects. The rating agency has maintained the [ICRA]A rating for long-term instruments and [ICRA]A1 rating for short-term instruments.

Notably, the long-term fund-based limits have been enhanced from Rs. 280.00 crores to Rs. 315.00 crores, indicating increased credit facility availability. Similarly, short-term fund-based sub-limits have been adjusted from Rs. 180.00 crores to Rs. 215.00 crores.

Regulatory Compliance and Disclosure

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by S.K. Sivakumar, Company Secretary, and submitted to both BSE Limited and National Stock Exchange of India Limited on March 5th, 2026.

This rating reaffirmation with positive outlook revision represents a favorable development for Nelcast Limited, potentially enhancing its access to credit markets and reflecting improved financial stability in the assessment of the rating agency.

Nelcast Limited delivered robust financial performance in Q3FY26, reporting a remarkable 166% year-on-year growth in net profit to ₹1590.20 lakhs. The iron castings manufacturer's strong operational efficiency and revenue growth contributed to this impressive performance for the quarter ended 31st December 2025.

Financial Performance Highlights

The company's revenue from operations grew 13.1% year-on-year to ₹32962.01 lakhs in Q3FY26, compared to ₹29140.93 lakhs in the corresponding quarter of the previous year. Total income, including other income, reached ₹33219.07 lakhs, up from ₹29706.50 lakhs in Q3FY25.

Nine-Month Performance

For the nine months ended 31st December 2025, Nelcast Limited maintained strong momentum with net profit of ₹3316.31 lakhs, representing a 39.7% increase from ₹2374.86 lakhs in the corresponding period last year. Revenue from operations for the nine-month period stood at ₹96021.85 lakhs, up 4.2% from ₹92193.17 lakhs in the previous year.

Operational Efficiency and Cost Management

The company demonstrated improved operational efficiency with total expenses for Q3FY26 at ₹31083.99 lakhs compared to ₹28904.12 lakhs in Q3FY25. Key expense components included cost of materials consumed at ₹13565.01 lakhs, power and fuel costs of ₹3289.80 lakhs, and employee benefits expense of ₹2206.29 lakhs. The profit before tax for the quarter reached ₹2135.08 lakhs, significantly higher than ₹802.38 lakhs in the corresponding quarter last year.

Corporate Structure and Governance

The Board of Directors approved the unaudited standalone and consolidated financial results in their meeting held on 9th February 2026. The company's operations relate to one primary segment of iron castings, and the consolidated results include its subsidiary NC Energy Limited, which has not yet commenced commercial operations. The paid-up equity share capital remained stable at ₹1740.02 lakhs with a face value of ₹2.00 per share.

Auditor Review and Compliance

K Nagaraju & Associates, Chartered Accountants, conducted a limited review of the standalone and consolidated financial results. The financial statements have been prepared in compliance with Indian Accounting Standards (Ind AS) and meet the disclosure requirements under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.