Financial Performance Highlights FY 2025-26
Steelcast Limited reported strong FY26 results with revenue from operations increasing 13.33-18.6% to ₹423.17 crore and total income reaching ₹438.62 crore (15.24% growth). Net profit grew 20.3% to ₹86.86 crore with margins expanding significantly - EBITDA margin improved 104 bps to 30.64% and PAT margin increased 119 bps to 20.53%. The company maintained a debt-free balance sheet for the third consecutive year with ROCE at 28.86%.
Operational and Business Metrics
Production volume reached 13,918 MT with sales volume of 13,903 MT (11.3% YoY growth) at 48% capacity utilization. The company achieved 60% export contribution (₹254.77 crore) across 16 countries, with plans to expand to 18 countries. Key developments included commercialization of 38 new product parts, entry into defense manufacturing with Israeli client sampling, and obtaining AAR certification for locomotive components. The order book stood at ₹111.54 crore providing ~3 months visibility.
Dividend and Capital Structure
The company declared total dividend of 171% for FY26, comprising three interim dividends totaling 117% and a recommended final dividend of 54%. The dividend payout ratio was 20.02% of PAT. The company completed share sub-division from face value ₹5 to ₹1 per share effective August 29, 2025, with authorized share capital of ₹15.00 crore and promoter holding at 45%.
Sustainability and ESG Initiatives
Steelcast made significant progress toward its carbon neutrality target by FY30, currently offsetting 47% of emissions (19,256 out of 41,287 tonnes CO₂). The company uses 80% renewable power through 11.9 MW captive capacity, with a 2.4 MW hybrid plant commissioning by December 2026 expected to save ₹3.5-4.0 crore annually. ESG highlights include zero human rights complaints, 100% environmental compliance, and CSR expenditure of ₹1.94-1.95 crore (exceeding 2% requirement) benefiting 1.73+ lakh individuals.
Corporate Governance and AGM
The 55th AGM is scheduled for July 29, 2026 to approve financial statements, confirm dividends, reappoint directors (Ashutosh H. Shukla and Subhash R. Sharma retiring by rotation), and consider special resolutions including reappointment of Chetan M. Tamboli as Managing Director for 5 years from September 1, 2026. The board comprises 10 directors (5 independent, 1 non-executive, 4 executive) with 5 meetings held during FY26.
Investments and Future Outlook
FY26 capex was ₹89.01 lakhs focused on energy conservation, with planned FY27 capex of ₹30 crore for debottlenecking. R&D expenditure was ₹4.13 crore (0.94% of turnover) generating savings of ₹142.79 lakhs. The company maintains strong credit ratings (CARE A-; Stable / CARE A2+) and holds investments worth ₹78.83 crore including mutual funds and equity instruments. Capacity utilization is expected to improve to 58% in FY27 with continued focus on export expansion and defense sector penetration.