Neetu Yoshi Ltd Q2FY26 – When Railways Meet ROI: From Foundry Floor to 51% ROE!

1. At a Glance

Neetu Yoshi Limited, a ferrous metal foundry that sounds like a railway engineer’s fantasy and a finance geek’s delight, is turning molten iron into molten profits. At ₹115 per share and a market cap of ₹445 crore, this three-year-old upstart is giving 20-year veterans sleepless nights. ROE? A scorching51%. ROCE? A muscular46%. Debt to Equity? A healthy0.11— which basically means the lenders are sipping tea while the equity holders are dancing.

InQ2FY26, the company reported₹44.2 crore in sales(up25.4% YoY) and₹11.5 crore in PAT(up45.5% YoY). Operating profit margins sit like a proud peacock at32%, and earnings per share of ₹5.94 make even its ₹5 face value blush.

From 0.2 kg bolts to 500 kg castings, Neetu Yoshi’s metal isn’t just heavy — it’s heavy on growth, too. The only metal lighter than their product right now seems to be investor patience after a 10% fall in the last 3 months.

But beneath that price dip is a manufacturing machine revving hard — IPO funds in hand, capacity doubled, and a second plant in the works. So, is this the next “AIA Engineering of SME space” or another railway wagon stuck on a siding? Let’s dig deep.

2. Introduction

When a company born in 2020 starts postingROEs above 50%, it either discovered alchemy or discovered a way to sell cast iron like gold. Fortunately for Neetu Yoshi, it’s the latter.

This Haridwar-based manufacturer of ferrous metallurgical components — cast iron, SG iron, mild steel, and manganese steel — has gone fromtrading raw materialsin 2020 tosupplying over 25 RDSO-approved partsto Indian Railways. It’s as if a grocery store suddenly became the Big Bazaar for bogie parts.

The company’s rise has been nothing short of cinematic. From ₹5 crore in revenue in FY22 to ₹80 crore TTM by FY25, that’s a16x jump in three years. You could say Neetu Yoshi has been bench-pressing balance sheets for fun.

Sure, it’s still tiny compared to AIA Engineering’s ₹35,000 crore muscle, but it’s punching far above its market-cap weight. Its client list —Jupiter Wagons (54%),Titagarh (12%), andTexmaco (sprinkled in)— reads like the who’s who of the Indian Rail ecosystem.

But here’s the twist — 99% of its FY24 revenue came from Indian Railways. When your revenue depends on one customer (and that customer is known for delayed payments and bureaucratic yoga), you either diversify or pray. Neetu Yoshi seems to be doing both — praying with one hand and building anew ₹50.7 crore Kanpur plantwith the other.

3. Business Model – WTF Do They Even Do?

At its core, Neetu Yoshi is afoundry on steroids. It melts, moulds, machines, and paints iron parts that end up in railway wagons, coaches, and locomotives.

Their product range looks like an engineer’s dream and an investor’s nightmare to pronounce:

• Brake system parts– CP Assemblies, Brake Beams, End Castings.
• Suspension parts– Bogie components and strut castings.
• Coupler parts– Axle housings, adapters, and liners.

In short: if it moves on Indian Railways, there’s a chance Neetu Yoshi made one of its bones.

TheirBhagwanpur (Haridwar)facility spans7,173 sq. metersand handles everything in-house — from melting to machining. The capacity jumped from4,493 MTPA to 8,087 MTPAby mid-2024, basically doubling productivity before most SMEs even finish applying for a subsidy.

And now they’re setting up aKanpur unitto manufacturecomplete bogies and couplers— a ₹50.7 crore bet funded from IPO proceeds. The company claims this will push them into export markets and the non-railway industrial segment.

So, what’s the catch? Simple —Railways contribute 99%of their FY24 revenue. Until Kanpur comes online, their diversification strategy is like a railway timetable: full of plans, low on punctuality.

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