Q1 2026 Nelcast Ltd Earnings Call Transcript
Key Points
- Nelcast Ltd (BOM:532864) reported a strong start to FY26 with a total income of INR336 crores, marking an 11.1% growth compared to Q1 FY25.
- The company's exports grew by 17% year over year to INR115.4 crores, despite tariff-related uncertainties in key export markets.
- EBITDA improved significantly, rising 44.3% year over year to INR32.4 crores, with EBITDA per kg increasing by 24% to INR14.7 per kg.
- Nelcast Ltd is actively investing in new product development, focusing on the export market, which is expected to enhance return ratios and profitability in FY27 and FY28.
- The company is strengthening its engineering and process capabilities to support the development of complex, high-value castings, positioning itself as a preferred supplier to global OEMs.
- The introduction of new AC cabin norms by the government has led to some softness in demand for commercial vehicles since June.
- There are concerns about a potential slowdown in the US truck market due to increased tariffs on aluminum and steel, which could impact demand.
- The company's reliance on the US market is significant, with 80% of export revenue coming from the US, making it vulnerable to market fluctuations there.
- Despite a strong start, there is uncertainty about achieving the targeted one lakh metric tons for the year due to potential market shocks.
- The company faces challenges in ramping up utilization at the Pedapariya facility, currently at 25-30%, with a target of reaching 60% in the next 2-3 years.
Ladies and gentlemen, good day and welcome to Nelcast Limited Q1 FY26 earnings conference call hosted by EY.
(Operator Instructions)
I now hand the conference over to Mr. Abhishek Bhatt from EY Investment Limited. Thank you and over to you, sir.
Thank you. Good morning, everyone. On behalf of Nelcast Limited, I welcome all of you to Quarter1 FY26 earnings conference call. The results and investor presentation have already been shared and are also available on our website and through our filings with stock exchanges.
Joining us today to discuss the company's performance and outlook are Mr. P. Deepak, Managing Director and Chief Executive Officer; and Mr. S.K. Shiva Kumar, Chief Financial Officer.
Before we proceed, a standard disclaimer. Please note that anything said on this call during the course of interaction and in our collaterals which reflects the outlook towards the future or which should be construed as certain forward-looking statement must be
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