Electrosteel Castings Limited submitted its Q2 & H1 FY27 investor presentation to BSE Limited and National Stock Exchange of India Limited as a regulatory disclosure under Regulation 30 of SEBI LODR Regulations. The presentation was dated November 2026 and signed by Company Secretary Indranil Mitra on 13 November 2026.

Financial Performance (Consolidated)

Q2 FY27 Results:

  • Revenue from Operations: ₹1,520 crore (up 6.6% QoQ from ₹1,426 crore, up 8.9% YoY from ₹1,396 crore)
  • Gross Profit: ₹719 crore with Gross Profit margin of 47.3% (down 157 bps QoQ, down 164 bps YoY)
  • EBITDA: ₹139 crore with EBITDA margin of 8.9% (flat QoQ, down 26.1% YoY from ₹188 crore)
  • PAT: ₹51 crore with PAT margin of 3.3% (up 5.1% QoQ from ₹48 crore, down 35.1% YoY from ₹78 crore)
  • Diluted EPS: ₹0.8

H1 FY27 Results:

  • Revenue from Operations: ₹2,945 crore (down 0.3% YoY from ₹2,953 crore)
  • Gross Profit: ₹1,416 crore with Gross Profit margin of 48.1% (down 212 bps YoY)
  • EBITDA: ₹278 crore with EBITDA margin of 9.2% (down 28.0% YoY from ₹386 crore)
  • PAT: ₹99 crore with PAT margin of 3.3% (down 40.7% YoY from ₹167 crore)
  • Diluted EPS: ₹1.6

Balance Sheet Highlights (Consolidated as of 30 September 2026)

  • Total Equity: ₹5,964 crore (vs ₹5,924 crore as of 31 March 2026)
  • Total Borrowings: ₹1,625 crore (₹217 crore non-current, ₹1,408 crore current)
  • Total Assets: ₹9,484 crore (vs ₹9,461 crore as of 31 March 2026)
  • Plant, Property and Equipment: ₹3,104 crore
  • Capital Work in Progress: ₹1,174 crore
  • Inventories: ₹2,494 crore
  • Trade Receivables: ₹1,025 crore
  • Cash & Cash Equivalents: ₹190 crore

Business Overview and Strategic Developments

Electrosteel is described as a nearly seven-decade old integrated ductile iron manufacturer with market leadership in DI pipes and fittings in India. Key business highlights include:

  • Production capacity of approximately 1 Mn TPA across DI pipes, DI fittings and CI pipes
  • India's largest exporter of DI Pipes and Fittings, serving 130+ countries with exports contributing ~22% of revenue
  • Fully integrated production with captive blast furnace, coke oven, sinter plant, power plant, ferro alloys, paint, and cement facilities
  • Promoter's stake increased to 54.53% in Q2FY27 from 50.14% in Q1FY27 (8.8% increase quarterly)

Diversification Strategy

Valves Business (T.I.S. Services Acquisition):

  • Acquired 100% equity of T.I.S. Services S.p.A (Italy) in July 2025 for ~€11.5 million funded from internal funds
  • Acquired at 7-8x EV/EBITDA; EV €31 million
  • Turnover: ~€41 million in CY25 with ~13% EBITDA margin
  • Two plants in Italy & Turkey with spare capacity
  • Manufacturing valves for water mains, sewage, hydro power, desalination plants, and mining
  • Has 11 registered patents and 5 patents pending registration
  • Planning to start production in India by March 2027
  • Targeting valves revenues of ₹800 Crores by FY30-31 with EBITDA margin guidance of ~16%

Industrial Paints Business:

  • Leveraging existing protective coating capabilities to enter external Industrial Paints & Coatings market
  • Market opportunity: ₹29,000 crore market growing at ~10% CAGR with ~14%-16% EBITDA margins
  • Target revenue of ₹800-1000 crore over 5 years (including inorganic)
  • Capex plan: ₹250-300 crore investments
  • Phase 1: 1,000 KL p.a. capacity by March 2027 & 4,000 KL p.a. by September 2027

Industry Tailwinds and Government Initiatives

Jal Jeevan Mission 2.0:

  • Total Outlay: ₹8.69 Lakh Crores (enhanced from ₹3.60 Lakh Crores)
  • Central Assistance: ₹3.59 Lakh Crores
  • Target: 19.4 crore rural households with 100% tap coverage by December 2028
  • Union Budget FY26-27 Allocation: ₹67,670 crore
  • Central funds sanctioned to states in FY27 (YTD): ₹16,487 crore
  • Release in FY25-26: ₹1,562 crore
  • Significant increase in fund releases expected from beginning of H2 FY27

AMRUT 2.0:

  • Total Indicative Outlay: ₹3 Lakh Crores (FY22-FY26)
  • Central Government Share: ₹76,760 Crores
  • Approved projects: ~₹1.93 lakh crore
  • DPRs sanctioned: ~₹1.67 lakh crore
  • Projects awarded: ~₹1.38 lakh crore
  • Union Budget FY26-27 Allocation: ₹8,000 crore

River Interlinking Projects:

  • 30 river links identified under National Perspective Plan
  • Ken-Betwa Link Project (₹44,605 crore) under implementation with 2030 expected completion
  • Several other projects in planning and DPR stages

Market and Shareholder Information

  • Current Market Price (as on 12 November 2026): ₹71.0
  • Market Capitalization: ₹4,286.6 Crores
  • 52 Week High/Low: ₹95.9 / ₹60.2
  • Shares Outstanding: 61.8 Crores
  • 3M ADTV (as on 30 September 2026): 25,67,158 shares

Shareholding Pattern (as on 30 September 2026)

  • Promoters: 54.53%
  • DIIs: 36.55%
  • FIIs: 0.35%
  • Others: 8.57%

Outlook and Guidance

Management acknowledged FY25-26 was challenging for the water infrastructure sector due to subdued demand from slowdown of JJM funds release. The outlook remains positive supported by:

  • Government's extension of Jal Jeevan Mission 2.0 until December 2028
  • Increased outlay of ₹8.69 lakh crore and higher Central Government contribution of ₹3.59 lakh crore
  • Anticipated recovery in Q4 FY27 driven by JJM focus returning and migration to piped irrigation in India
  • Expected normalization in FY27-28 with continued government funds flow