Nelcast Q1FY26 Concall Decoded: Casting Profits Like Never Before

Nelcast Q1FY26 Concall Decoded: Casting Profits Like Never Before

Opening Hook

When a company says it’s “casting” its way to success, Nelcast literally means it. In Q1FY26, this iron-casting champion not only poured molten metal but also poured money into shareholders’ hearts – with PAT jumping a sizzling 57%. They even bragged about crafting a 500 kg single casting, the biggest in their history, proving that size does matter… at least in metallurgy.

Here’s what we dug out from their iron-clad earnings call.


At a Glance

  • Revenue: ₹336 Cr – up 11% YoY, fueled by tractors and exports.
  • EBITDA: ₹32.4 Cr – up 44%, margins now at 9.6% (up 222 bps).
  • PAT: ₹12.5 Cr – up 57% YoY, because operational efficiency is the new black.
  • Exports: ₹115 Cr – up 17.3% YoY; Europe’s love for castings is real.
  • EBITDA/kg: ₹14.7 – creeping closer to the ₹15/kg holy grail.

The Story So Far

Nelcast has been quietly evolving from a low-margin, commodity casting player into a high-value product specialist. Over the past few years, it added automation, bigger moulding lines, and a global footprint spanning North America, Europe, and Southeast Asia. FY25 was tough with flat revenues, but Q1FY26 showed the turnaround: better product mix, rising exports, and strong domestic tractor demand.


Management’s Key Commentary

  1. On Growth:
    “Q1 witnessed strong growth in PAT and margins.”
    – Translation: Efficiency finally paying dividends.
  2. On Tractors:
    “Favorable monsoons boosted tractor sales.”
    – Farmers to Nelcast: “Keep the parts coming.”
  3. On M&HCV:
    “Stable demand ahead of regulatory changes.”
    – Industry: “Buy now, panic later.”
  4. On Exports:
    “17% growth despite global headwinds.”
    – Global customers: “We’ll take more of that.”
  5. On Margins:
    “EBITDA/kg at ₹14.7; on track for ₹15 target.”
    – Investors: “Music to our ears.”

Numbers Decoded – What the Financials Whisper

MetricQ1FY26Q1FY25EduInvesting Take
Revenue – The Forge₹336 Cr₹302 Cr11% growth – tractors to thank.
EBITDA – The Muscle₹32.4 Cr₹22.4 Cr44% up – costs trimmed like bonsai.
PAT – The Gold Nugget₹12.5 Cr₹8 Cr57% jump – efficiency magic.
EBITDA/kg – The Holy Grail₹14.7₹11.8Almost at target, CFO smiling.

Analyst Questions That Spilled the Tea

  • Analyst: “Will you hit ₹15/kg EBITDA?”
    Management: “Yes, unless we trip.”
  • Analyst: “What’s with the giant 500 kg casting?”
    Management: “Big casting, bigger margins.”
  • Analyst: “Any global risks?”
    Management: “Markets stabilizing, Europe loves us.”

Guidance & Outlook – Crystal Ball Section

Management is bullish:

  • EBITDA/kg target of ₹15 for FY26 looks achievable.
  • Tractor segment to remain strong with 7.5% industry growth expected.
  • Exports to rise with Europe expansion.
  • M&HCV steady with a 3-5% growth forecast.

Optimism everywhere – unless steel prices play villain.


Risks & Red Flags

  • Raw material volatility – scrap prices can scrap profits.
  • Global demand swings – export growth isn’t bulletproof.
  • Regulatory shocks – new norms could dent margins.
  • Capacity utilization – underuse would break the growth streak.

Market Reaction & Investor Sentiment

The stock barely flinched – traders yawned, long-term investors smiled. The PAT jump and margin expansion give confidence, but the market wants to see sustained growth before throwing a party.


EduInvesting Take – Our No-BS Analysis

Nelcast Q1FY26 was solid as iron: revenue growth, margin expansion, and PAT surge tick all boxes. The company’s shift to high-value products is working, and the export playbook is strong. The ₹15/kg EBITDA target is within reach, making it an interesting bet for patient investors.

This stock is like their castings – strong, durable, and slowly heating up.


Conclusion – The Final Roast

Nelcast came, cast, and conquered Q1FY26. If it keeps this up, ₹15/kg EBITDA will just be the beginning. For now, investors can sit back and enjoy the forging heat – as long as the global furnace doesn’t cool down.


Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.

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