Financial Performance
Alicon Castalloy Limited reported consolidated FY26 revenue of ₹1,784.47 crore, representing 4% YoY growth, with Q4 achieving a record ₹495.4 crore. However, PAT declined 25% to ₹34.44 crore due to higher depreciation charges and one-time exceptional items of ₹7.57 crore related to new labor code provisions and legal claim settlements. Standalone revenue grew 8.5% to ₹1,660.74 crore with profit declining 13.4% to ₹32.87 crore.
Operational Highlights
The company maintained strong operational metrics with 78% capacity utilization, 944 employees, and 91 customers across 18 countries. The executable order book stood at ₹7,600 crore with visibility through FY2031. Automotive contributed 95% of revenue (two-wheelers 42%, passenger vehicles 35%, commercial vehicles 18%), while non-automotive segments including defense, aerospace, and new data center components contributed 5%. The company secured significant new orders including a German e-Axle housing program and follow-on orders from Italian supercar manufacturers.
Auditor Findings and Compliance Issues
Auditors identified material discrepancies in quarterly returns filed with banks for working capital limits, showing significant variances in inventory and receivables reporting across all four quarters of FY26. Management attributed these to sales cut-off reversals, unaccounted trade payables, and NRV impact adjustments not reflected in bank reports. The company paid fines totaling ₹1,66,380 for delay in appointment of Company Secretary but reported no material pending litigations affecting financial position.
Exceptional Items and Contingencies
The company recognized exceptional items of ₹7.57 crore comprising ₹5.00 crore for increased gratuity liability due to new labor codes implementation and ₹2.57 crore for settlement of a past legal claim related to sales commission. Contingent liabilities included performance guarantees (₹9.66 crore), corporate guarantees (₹54.55 crore), customs duties disputes (₹9.37 crore), and pending court cases (₹17.10 crore).
Corporate Actions and Governance
The board recommended a final dividend of ₹3 per share, resulting in total FY26 dividend of ₹5 per share. The 36th AGM is scheduled for September 28, 2026, with record date of September 21, 2026. Key management changes included appointment of Mr. Sumit Bhatnagar as CEO effective April 1, 2026, and Mr. Anantakrishnan Krishna as Additional Independent Director. CRISIL reaffirmed credit rating at 'CRISIL A/Positive' for long-term facilities.
Subsidiary Performance and Segment Data
Subsidiaries Illichmann Castalloy GmbH reported revenue of ₹268.14 lakhs with PBT of ₹13.57 lakhs, while Illichmann Castalloy S.R.O reported revenue of ₹1,222.21 lakhs with PBT of ₹7.37 lakhs. The company operates a single reportable segment of Aluminium Castings with domestic sales of ₹15,370.83 crore and export sales of ₹2,386.51 crore.
Forward Outlook and Strategy
The company expects 8-10% revenue growth for FY27 (excluding aluminum price impact) under its "Reset, Refocus and Rebuild" strategy. Plans include establishing at least one new manufacturing facility, continued investments in automation, and expansion into European and US markets. The company maintained strong sustainability initiatives with >50% renewable energy consumption and 'Committed' EcoVadis rating.