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 scorching 51%. ROCE? A muscular 46%. Debt to Equity? A healthy 0.11 — which basically means the lenders are sipping tea while the equity holders are dancing.
In Q2FY26, the company reported ₹44.2 crore in sales (up 25.4% YoY) and ₹11.5 crore in PAT (up 45.5% YoY). Operating profit margins sit like a proud peacock at 32%, 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 posting ROEs 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 from trading raw materials in 2020 to supplying over 25 RDSO-approved parts to 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 a 16x 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%), and Texmaco (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 a new ₹50.7 crore Kanpur plant with the other.
3. Business Model – WTF Do They Even Do?
At its core, Neetu Yoshi is a foundry 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.
Their Bhagwanpur (Haridwar) facility spans 7,173 sq. meters and handles everything in-house — from melting to machining. The capacity jumped from 4,493 MTPA to 8,087 MTPA by mid-2024, basically doubling productivity before most SMEs even finish applying for a subsidy.
And now they’re setting up a Kanpur unit to manufacture complete 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.
4. Financials Overview
Let’s roll out the quarterly scoreboard like a cricket scorecard for iron enthusiasts.
Metric
Q2FY26 (Sep ’25)
Q2FY25 (YoY)
Q1FY26 (QoQ)
YoY %
QoQ %
Revenue (₹ Cr)
44.2
35.2
35.1
25.4%
25.9%
EBITDA (₹ Cr)
14.4
11.6
12.1
24.1%
19.0%
PAT (₹ Cr)
11.5
7.9
8.0
45.5%
43.8%
EPS (₹)
2.97
2.04
2.07
45.6%
43.5%
Commentary: YoY growth that would make even IRCTC jealous. A 45% jump in profits on a 25% rise in revenue — that’s some serious operating leverage. Even EBITDA margins at 32% show this company milks more margin from castings than most FMCG brands do from shampoo.
5. Valuation Discussion – Fair Value Range Only
Let’s crunch some numbers like accountants with attitude.
a) P/E Method: EPS (annualized) = ₹2.97 × 4 = ₹11.88 Industry P/E = 25.7 → Fair Value Range: ₹11.88 × (18–25) = ₹214 – ₹297
b) EV/EBITDA Method: EV/EBITDA = 14.6 (current) If industry average = 20, then potential fair range = ₹405 Cr × (20 / 14.6) = ₹555 Cr EV, implying ₹140–₹150 per share.
c) DCF (simplified): Assume 30% growth for 3 years, terminal growth 5%, discount rate 12%. Estimated equity value range: ₹400–₹500 Cr.
🎯 Educational Fair Value Range: ₹140 – ₹290 per share
Disclaimer: This fair value range is for educational purposes only and not investment advice. If you buy based on this, even God won’t audit your P&L.
6. What’s Cooking – News, Triggers, Drama
IPO Done, Money Ready: The ₹50.7 crore IPO is already in motion, funding the upcoming Kanpur facility for bogie and coupler production.
Capacity Doubled: Haridwar facility now clocks 8,087 MTPA — a 2x jump.
H1FY26 Results Fireworks: Total income ₹45.89 crore, net profit ₹11.54 crore — 45% YoY rise.
Governance hiccup: Company Secretary Pranjul Gupta resigned in August 2025, and BSE flagged a disclosure delay. The company later re-submitted documents — classic SME-level paperwork drama.
If management execution matches their casting precision, this could be a manufacturing multi-bagger. If not, well, the Indian Railways won’t be the only one with delays.
7. Balance Sheet – Iron Strong or Paper Thin?
Metric (₹ Cr)
Mar 2024
Mar 2025
Sep 2025
Total Assets
38
64
144
Net Worth
20
44
123
Borrowings
17
14
14
Other Liabilities
1
5
6
Total Liabilities
38
64
144
💡 Observations:
Assets grew 3.8x in 18 months — that’s faster than railway track expansion.
