Alicon Castalloy Ltd

Financial Performance

• Total income Rs 579 crore; up 37% YoY and 17% sequential.
• EBITDA Rs 55 crore; EBITDA margin 9.5%.
• PBT Rs 18 crore; up 45% YoY; PAT Rs 12 crore; up 23% YoY.
• Consolidated growth 37.7% YoY; stand-alone 43.6% YoY.
• Underlying growth (inflation-adjusted): 17.5% consolidated; 22% standalone.
• Input-cost volatility pressured margins; offset by efficiency initiatives.
• Europe: lower sales as legacy programs end; new programs to ramp.

Operational and Market Update

• Indian auto market remains structurally strong; PVs ~1.57 million units, +11.3%.
• Two-wheelers +21%; commercial vehicles +19.5% YoY.
• Hybrid potential 25-30% CAGR; EVs 20-22% CAGR over 4–5 years.
• Alicon is a leading hybrid supplier; expanding EV portfolio.
• EV portfolio includes motor housings, e-axle housings, battery housings.
• Acquired businesses add Rs 450 crore revenue potential over 5 years.
• Visible opportunities with two large Indian OEMs; ~Rs 850 crore over 5 years.
• Europe: lower quarterly sales; expect rebound as programs ramp.

Capex and Capacity

• Rs 125 crore investment at Shikrapur; 1.36 lakh sq ft facility.
• SOP expected by Mar 2027; generates about Rs 500 crore annual revenue in 4–5 years.
• Q1 FY27 capex Rs 40 crore; full-year capex guidance Rs 150 crore.
• Rs 70 crore of the Rs 125 crore earmarked for the new facility.
• Pune plant: initial 3,000 tonnes; potential to scale to 7,000 tonnes.

Guidance and Outlook

• FY27: underlying top-line growth guidance 8–10%.
• FY27: EBITDA margins expected to improve by about 1%.
• Capital deployment aligned to customer demand; maintain leverage discipline and cash flow.

Q&A Highlights

• JLR EV: 600 sets/week now; expected to rise from Jan 2027; peak by Q3 CY2026.
• Q1 margin 9.5%; 11.4% est. excluding aluminium; some corrections to pass through later.
• Non-auto: HVAC data-center aluminium housing; first orders; expansion planned.
• Exports ~40% of new business; domestic deemed exports ~30% of exports.
• Capex plan to add more investments; ROCE improving toward mid-teens over time.

Dividend record date

• Final dividend of Rs 3 per equity share; record date 21 September 2026.

Meeting Details

• Date of call: 14 August 2026, after unaudited Q1 results for quarter ended 30 June 2026.
• Type and mode: group audio conference call.
• Event: Analysts Conference Call to discuss unaudited quarterly results.
• Key participant: Chief Financial Officer.
• Availability: audio recording posted on company website.

Business overview

• Alicon Castalloy provides aluminum alloy castings and engineering solutions.
• Global footprint includes Austria, Slovakia, and India; near Shikrapur expansion planned.
• Focus on carbon-neutral tech, lightweighting, and EV/hydrogen opportunities.

Q1 FY27 financial highlights

• Total income ₹579 cr; net revenue ₹578 cr, up 37% YoY.
• Gross profit ₹227 cr; margin 39.2%, down YoY due to aluminum price rise.
• EBITDA ₹55 cr; margin 9.5%; PAT ₹11.45 cr; margin 2.0%.

Operational developments & capex

• New facility near Shikarpur to expand capacity for value-added products.
• Plants operated at ~80% utilization; record quarterly revenue.

Outlook & strategy

• Future-ready with carbon-neutral tech, lightweighting, and cost-optimisation.
• Healthy order pipeline; focus on capacity, technology, and scalable organisation.

Risks & liquidity

• Aluminum price volatility and macro uncertainties pressure margins; mitigate via cost-optimisation.

Performance highlights

• Total income 579.1 crore; up 37% YoY.
• EBITDA 55.3 crore; up 8% YoY.
• PBT 18.3 crore; up 20% YoY.
• PAT 11.4 crore; up 23% YoY.
• QoQ growth: total income 579.1 crore, up 17% QoQ; EBITDA up 20% QoQ.
• Announced new manufacturing facility near Shikrapur, Pune to expand capacity.
• Healthy order visibility across key businesses and ongoing capacity/technology investments.

Rating action details

• CRISIL reaffirms Alicon Castalloy long-term rating at A/Stable; Outlook revised from Positive.
• Short-term rating reaffirmed at A1.
• Total bank facilities rated: Rs 300 crore.
• Annexure lists multiple banks with A/Stable long-term, A1 short-term.
• Outlook for long-term rating revised from Positive to Stable.
• Rating surveillance ongoing; ratings may be revised on new information.
• Date of communication: August 12, 2026.
• Rating agency: Crisil Ratings.

Appointment: Additional Independent Director

• Anantakrishnan Krishna appointed as Additional Independent Director, effective 13 August 2026; named Audit Committee Chair.
• Profile: Science graduate; Management Accountant; 40 years in HAL and Bosch; former board member and CFO.
• Not debarred by SEBI or any authority.

Resignation: Director and Audit Committee Chair

• Ajay S. Patil resigned as Director and Chairman of Audit Committee, effective 13 August 2026.
• Reason: resigning due to other commitments.

Meeting Details

• Date and time: 14 August 2026 at 11:00 IST.
• Type/Mode: group investor call, virtual.
• Organizer: Alicon Castalloy Ltd.
• Topic: Q1 FY27 results (quarter ended 30 Jun 2026).

Participants

• Group CEO and Group CFO to represent Alicon.

Purpose

• Discuss Q1 FY27 results and conduct Q&A.

Meeting Details

• Board meeting scheduled for 13 August 2026; time and venue not disclosed.

Key Agenda Items

• Approve unaudited standalone financial results for the quarter ended 30 June 2026.
• Approve unaudited consolidated financial results for the quarter ended 30 June 2026.
• Recommend final dividend, if any, for financial year 2025-26.

Other Notes

• Trading window closure periods not specified.

New manufacturing facility setup

• Board approved setup of new GDC/LPDC and machining plant at Shikrapur, near facilities, Pune, Rs 1,255 million capex.
• Premises acquired on 10-year lease, 130,000 sq ft, from Vijay Logistics Ltd.
• Financing to be through bank/financial institution borrowings and internal accruals.
• Project aimed at enhancing manufacturing capacity and supporting expansion.