NELCAST - Nelcast

📊 NSE: NELCAST 🏢 Castings & Forgings 📅 Last Updated: 12/14/2025 10:26

💰 Financial Performance

Revenue Growth by Segment

Domestic M&HCV segment (37.1% of 9M FY2025 revenue), Domestic Tractor segment (23.6% of 9M FY2025 revenue), and Exports (34.8% of 9M FY2025 revenue). Overall revenue for FY2025 was INR 1,263.4 Cr, a marginal decline of 0.85% YoY from INR 1,274.2 Cr in FY2024.

Geographic Revenue Split

Domestic India (64% of FY2025 revenue) and Exports (36% of FY2025 revenue at INR 445.22 Cr). Export concentration is high in the USA, with additional presence in Europe and Southeast Asia.

Profitability Margins

Net Profit Margin (PAT/OI) declined from 4.3% in FY2024 to 3.0% in FY2025. Profit After Tax (PAT) fell 31.4% YoY to INR 37.3 Cr in FY2025 from INR 54.4 Cr in FY2024.

EBITDA Margin

Operating Margin (OPBDIT/OI) was 8.0% in FY2025, up 20 bps from 7.8% in FY2024. However, it declined to 7.3% in 9M FY2025 (down 120 bps YoY) due to cost inflation and revenue decline.

Capital Expenditure

Annual maintenance capex of INR 20.0-25.0 Cr is planned for FY2026 and FY2027, to be funded through internal accruals. Significant debt-funded capex was completed in previous years.

Credit Rating & Borrowing

Ratings reaffirmed at [ICRA]A (Stable) and [ICRA]A1. Total debt/OPBDIT stood at 3.3x in FY2025, while interest coverage was 2.9x.

⚙️ Operational Drivers

Raw Materials

Pig iron and steel scrap (Specific % of total cost not disclosed, but commodity price softening contributed to a 5.7% YoY revenue decline in 9M FY2025).

Import Sources

Not disclosed in available documents.

Key Suppliers

Not disclosed in available documents.

Capacity Expansion

Current installed capacity is 1,60,000 MTPA across factories in Ponneri (TN), Gudur (AP), and Pedapariya (AP). No major debt-funded expansion is planned over the medium term.

Raw Material Costs

Not disclosed as a specific % of revenue; however, inability to pass on cost inflation led to a 120 bps decline in operating margins in 9M FY2025.

Manufacturing Efficiency

Not disclosed in available documents.

Logistics & Distribution

Not disclosed in available documents.

📈 Strategic Growth

Expected Growth Rate

11.30%

Growth Strategy

Transitioning to medium-to-high complexity machined castings to differentiate from low-cost Chinese competition; expanding export customer base in North America and Europe; leveraging a healthy order book from new global OEM platforms.

Products & Services

Ductile and grey iron castings including axle housings, clutch housings, and bogie suspension brackets.

Brand Portfolio

Nelcast

New Products/Services

Machined castings for global OEMs and new platforms; specific revenue contribution % not disclosed.

Market Expansion

Targeting North America, Europe, and Southeast Asia; increasing export customer base periodically.

Market Share & Ranking

One of the larger players in the Indian ductile iron/grey castings market.

Strategic Alliances

Not disclosed in available documents.

🌍 External Factors

Industry Trends

Domestic tractor industry projected to grow ~11.3% to 975,000 units in FY2026; transition to TREM V emission norms by April 2026 will increase vehicle costs.

Competitive Landscape

Competes with local and Chinese suppliers; differentiates through specialized high-complexity products to maintain higher margins.

Competitive Moat

Safety-critical nature of products (axle/clutch housings) and long lead times for OEM validation (1-2 years) create high switching costs and durable competitive advantages.

Macro Economic Sensitivity

High sensitivity to domestic economic cycles (M&HCV segment is 37.1% of revenue) and global macro-economic trends affecting exports (34.8% of revenue).