Nelcast soars after Q3 PAT soars 166.1% YoY

Nelcast surged 9.95% to Rs 132 after the company delivered a strong performance for the quarter ended 31 December 2025, amid strong domestic demand.

For Q3 FY26, consolidated profit after tax stood at Rs 15.9 crore, up 166.1% YoY from Rs 6 crore in Q3 FY25. PAT margin improved sharply to 4.8% from 2.0% in the corresponding quarter last year.

Revenue for the quarter rose 11.8% YoY to Rs 332.2 crore, compared with Rs 297.1 crore in the year-ago period.

EBITDA increased 56.5% YoY to Rs 35.9 crore from Rs 22.9 crore, with EBITDA margin expanding by 308 bps to 10.8%, compared with 7.7% in Q3 FY25. EBITDA per kg improved 35% YoY to Rs 15.9.

 

Looking ahead, the company said it expects healthy domestic demand and a gradual recovery in exports. Backed by a strong new-product pipeline and improved operational efficiency, Nelcast said it remains confident of sustaining long-term growth.

Nelcasts managing director and CEO Deepak Reddy Ponnavolu said Q3 FY26 was a strong quarter, driven by healthy domestic demand in the M&HCV and tractor segments, with improved volumes and profitability aided by cost-optimisation efforts that lifted EBITDA per kg to Rs 15.9. He noted that while exports are yet to fully recover, customer schedules are stabilising and recent US tariff relief for engineering and auto products has improved sentiment and is expected to support export demand over the medium term. Looking ahead, he highlighted progress on the companys high-value new-product pipeline, particularly at the Pedapariya facility, and said Nelcast remains well positioned for sustained growth and margin improvement as domestic CV demand stays strong into early FY27.

Nelcast manufactures grey and ductile castings for the medium and heavy commercial vehicle and tractor segments, with 30-35% of its revenues coming from exports. Its product portfolio includes differential carriers, differential cases, bogie suspension brackets and conventional brackets for M&HCVs, transmission casing, centre housing, axle housing and hydraulic lift covers for tractors, and specialised components such as base plates and brake discs for metro rail and railway applications.

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