1. Opening Hook
While others are busy crying over global tariffs, Steelcast seems to be quietly casting its way through chaos — with 42% YoY revenue growth and margins that could make even a software company blush. The U.S. may be taxing imports, but Steelcast is taxing competitors’ patience.
As theGuru Granth Sahibreminds us, “He who labors diligently need not fear the result.” Clearly, the folks in Bhavnagar took that literally — molten steel, solid numbers, and a calm CEO who sounds unshakable even when tariffs rise faster than his EBITDA.
Stick around — it gets molten-hot from here.
2. At a Glance
- Revenue up 42% YoY:No tariff tantrum could melt that growth.
- EBITDA up 62%:Efficiency hotter than their foundry furnaces.
- PAT up 75%:Profit margins glowing like liquid steel at 1,600°C.
- EBITDA Margin 32% (+408 bps):CFO probably checking calculator twice.
- Domestic Sales 36%, Exports 64%:India builds, world buys.
- FY26 Growth Guidance cut to ~12%:Tariffs cooled optimism, not ambition.
3. Management’s Key Commentary
“Revenue grew 42%, EBITDA up 62%, PAT up 75%.”(Translation: Steelcast doesn’t do soft landings — only hard castings. 😏)
“We expect a softer Q3 due to geopolitical uncertainties.”(Read: Tariffs may cool the furnace, not freeze it.)
“We maintain a 20% CAGR growth target over the next three years.”(When you’ve done 24% for four years, that’s conservative humility — not caution.)
“U.S. customers aren’t changing supply chains.”(Translation: They’d rather pay tariffs than trust anyone else’s metal.)
“Defense focus reduced due to bureaucracy and slow tenders.”(A rare case of firing bullets only at paperwork.)
“Hybrid power project to save ₹4 crore annually.”(Who knew green energy could fund more grey steel?)
“Our prices remain 5–13% cheaper than Chinese competitors.”(A diplomatic way of saying: ‘We’re cheaper, better, and not from China.’)
“Margins sustainable at 25–26%, but hit 32% this quarter.”(CFO smiling like a man who
just found money under the slag heap.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Growth | Comment |
|---|---|---|---|---|
| Revenue (₹ Cr) | 106.7 | 75.4 | +42% | Forged ahead of expectations |
| EBITDA (₹ Cr) | 34.2 | 21.1 | +62% | Melted costs, solidified margins |
| EBITDA Margin | 32.0% | 28.0% | +408 bps | One of India’s top industrial margins |
| PBT (₹ Cr) | 30.9 | 17.9 | +73% | Steel-strong profitability |
| PAT (₹ Cr) | 23.2 | 13.3 | +75% | The “profit furnace” is working fine |
| Domestic vs Exports | 36% / 64% | 40% / 60% | – / + | Global > Local |
| Order Book | ₹108 Cr | — | — | About one quarter’s visibility |
Quick read:Input cost savings and forex gains gave a one-time 500 bps bump, but sustainable EBITDA remains ~26–28%.
5. Analyst Questions
Q:Domestic sales dipped 33% QoQ — what’s cooking?A:Cyclical — nothing’s broken, just rotating like a casting mold.
Q:Any update on defense exports?A:Shipped 2,000 units, waiting for foreign generals to test them.
Q:Why lower guidance if you’re cheaper than China?A:Tariffs raised customer bills — demand took a breather.
Q:Any pressure to share tariff costs?A:None. Clients asked, we politely said, “No discount, only steel.”
Q:When ₹1,000 crore revenue?A:FY29
