Nelcast Limited Q2 & H1 FY26 Concall Decoded: Tariffs Wrecked Q2, EV Axles Promise Gold, FY27 Is the Real Trailer

1. Opening Hook

Q1 came in like a blockbuster. Q2? Straight-to-streaming. Nelcast walked into FY26 confident, only to be reminded that when the US sneezes, Indian foundries catch a cold. Tariffs, volatility, and a sudden “wait-and-watch” obsession among global OEMs ensured exports took a breather—hard.

But this wasn’t a panic call. Management sounded bruised, not broken. Domestic tractors kept humming, EV axles quietly flexed their margin muscles, and the company is betting big on large, complex castings that few competitors can even attempt.

Guidance? Walked back. Visibility? Foggy. Confidence in FY27? Rock solid.
Read on—because this concall was less about Q2 pain and more about why Nelcast thinks the worst is already behind it.

2. At a Glance

• Revenue down YoY in Q2 – Tariffs did what competitors couldn’t.
• H1 Revenue flat YoY – Exports collapsed, domestic saved face.
• EBITDA margin 7% (Q2) – ASP drop punched margins squarely.
• Exports ~26% of Q2 revenue – High-margin mix went missing.
• FY26 guidance shelved – Volatility killed spreadsheet confidence.

3. Management’s Key Commentary

“We were expecting Q2 to be stronger.”
(Translation: Tariffs ruined the party. 😐)

“The worst is behind us.”
(Translation: Please believe us, we’ve suffered enough.)

“New high-value products will contribute 10–15% of sales.”
(Translation: FY27 margins will look very different. 😏)

“E-axles increase revenue per vehicle from $350 to $900.”
(Translation: EVs finally paying rent. 🚗⚡)

“We don’t need capex; we need utilization.”
(Translation: Plants are ready, orders are not.)

“Exports will recover from November.”
(Translation: Customers stopped panicking… hopefully.)

4. Numbers Decoded