Nelcast Stock Up by More Than 12% After Profit Increases by 57% in June Quarter
By Ankur Chandra | Published at: Aug 1, 2025 01:01 PM IST
Chennai, Friday, August 1, 2025 – Nelcast Ltd (NSE: NELCAST, BSE: 532864) surged 9.00% to ₹171.22 in early trade on Friday after the company posted strong Q1FY26 results, led by margin expansion, higher exports, and improved profitability. Profit of the company was up by 57.2% at Rs 12.5 crore, in June quarter.
At 12:55 p.m. the stock is up by 12.52% at Rs 176.75.
Q1FY26 Financial Highlights
| Particulars | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Total Revenue (₹ Cr) | 336.0 | 302.3 | 11.1% |
| EBITDA (₹ Cr) | 32.4 | 22.4 | 44.3% |
| EBITDA Margin (%) | 9.6% | 7.4% | +222 bps |
| EBITDA/kg (₹) | 14.7 | 11.8 | 24.4% |
| PAT (₹ Cr) | 12.5 | 8.0 | 57.2% |
| PAT Margin (%) | 3.7% | 2.6% | +109 bps |
The company achieved its highest-ever EBITDA per kg at ₹14.7, with management reaffirming guidance to reach ₹15/kg by end-FY26.
Segment-Wise Revenue Contribution
| Segment | Q1FY26 (%) | Q1FY25 (%) |
|---|---|---|
| M&HCV | 35.2% | 37.9% |
| Tractors | 23.5% | 25.0% |
| Exports | 35.0% | 33.2% |
| Railways | 2.5% | 0.5% |
| Off-highway Equipment | 3.2% | 3.0% |
| Others | 0.6% | 0.4% |
Exports registered a 17% YoY increase to ₹115 crore, aided by early benefits from the UK-India FTA.
Management Commentary
Deepak Reddy Ponnavolu, MD & CEO, stated:
“FY26 is a transformative year for us. We’ve developed our largest-ever product-a 500 kg casting-for customer approval, with several other new samples in progress. Despite tariff-related export concerns, we remain confident in long-term growth. Tractors saw strong demand due to a favourable monsoon, while other segments remained stable.”
Strategic Outlook
- Prioritizing new product development and optimization of underutilized facilities.
- Targeting accelerated growth in FY27–FY28.
- Export demand outlook remains optimistic.
Market Snapshot (as of 9:34 a.m. IST)
| Metric | Value |
|---|---|
| Last Traded Price | ₹171.22 |
| % Change | +9.00% |
| Day’s High | ₹173.10 |
| Day’s Low | ₹160.00 |
| Previous Close | ₹157.08 |
| VWAP | ₹168.74 |
| 52-Week High (Aug 1, 2025) | ₹173.10 |
| 52-Week Low (Mar 18, 2025) | ₹78.55 |
About Nelcast Ltd
Founded in 1982, Nelcast Ltd is a prominent manufacturer of grey and ductile iron castings, catering to M&HCV, tractor, railways, and export markets. With plants in Tamil Nadu and Andhra Pradesh, it operates with a total installed capacity of 1.6 lakh tonnes per annum. Nelcast is actively traded on both NSE and BSE and reported a market capitalization of ₹1,489 crore as of August 1, 2025.
REF: https://nsearchives.nseindia.com/corporate/NELCAST_31072025175206_PressReleaseQ131072025Upload.pdf
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