Simplex Castings Ltd Q3 FY26 – ₹148 Cr 9M Revenue, 34% ROE, 24% ROCE, and a ₹50 Cr Equity Raise: Revival or Just Another Foundry Flex?

1. At a Glance

Simplex Castings Ltd is that old-school heavy engineering company that quietly survived multiple industrial winters, one near-death experience, and still managed to come back swinging. Founded in 1971, this Chhattisgarh-based casting-and-everything-else shop now sits at a market cap of about ₹388 crore with the stock trading around ₹499. In the last one year, the stock has delivered a face-melting 127% return, which is ironic because the business itself deals with things that melt metal, not portfolios.

FY25 sales stand at ₹215 crore with PAT of ₹18.7 crore. ROE has jumped to a spicy 33.7%, ROCE is at 24.1%, and yet the company pays zero dividend, because why share cash when you can hoard it like a true industrialist? The latest quarterly numbers show sales of ₹47.5 crore and PAT of ₹4.76 crore, though profit is down YoY thanks to margin normalization. Debt stands at ₹66 crore with a debt-to-equity of 0.81, so this is not a debt-free saint, but also not a leverage sinner.

The most interesting twist? A fresh preferential issue of ₹50.15 crore at ₹494, almost at market price. When promoters raise capital near CMP, they’re either very confident or very bold. Or both. Curious already?

2. Introduction

Simplex Castings is like that uncle at Indian weddings who disappeared for a few years, came back fitter, richer, and now everyone wants to know what gym he joined. Between FY19 and FY21, this company was flirting dangerously with losses, weak cash flows, and terrible working capital cycles. Inventory days were exploding, ROCE was negative, and the balance sheet looked like it had seen too many industrial accidents.

Fast forward to FY25, and suddenly we’re talking about 58% TTM revenue growth, 53% TTM profit growth, and ROE numbers that would make FMCG companies blush. The transformation hasn’t come from any fancy digital pivot or AI buzzword, but from boring, sweaty execution in heavy engineering, fabrication, and castings.

However, before we crown it a turnaround king, let’s slow down. This is still a capital-intensive business with cyclicality, chunky receivables, rising debtor days, and customers like steel plants and PSUs who don’t exactly pay on UPI. The question is: is this revival structurally sustainable, or are we just catching Simplex at the top of the metal cycle?

Let’s dig in, helmet on.

3. Business Model – WTF Do They Even Do?

Simplex