Nelcast Ltd

Meeting Details

• Date and time: 28 July 2026, 11:00 PM IST.
• Type and mode: group conference call, virtual.
• Event/organiser: conference call with fund managers, analysts and investors.
• Key participants from the company: Company Secretary.
• Purpose: investor/analyst interaction; transcript released.
• Transcript availability: transcript uploaded on the company's investor website.

AGM Details

• AGM held on 27 July 2026 at 3:30 PM via VC/OAVM.
• Cut-off date for voting: 20 July 2026.
• Total shareholders on record date: 28,845.
• Remote e-voting 23–26 July 2026; VC attendance: promoters 3, public 58.

Resolutions & outcomes

• Resolution 1: Ordinary—Adopt standalone and consolidated financial statements; Passed.
• Resolution 2: Ordinary—Declare dividend for FY2025-26; Passed.
• Resolution 3: Ordinary—D. Sesha Reddy does not seek re-appointment; Passed.
• Resolution 4: Special—Appoint A Balasubramanian as director; Re-appointment approved.
• Resolution 5: Special—Re-appoint R. Sridharan as Non-Executive Independent Director for second term; Passed.
• Resolution 6: Ordinary—Ratify cost auditors' remuneration for FY2027; Passed.

Dividend

• Dividend for FY2025-26 proposed/declared; per-share amount not disclosed.

Director Changes

• D. Sesha Reddy does not seek re-appointment.
• A Balasubramanian to be appointed/re-appointed as director.
• R. Sridharan re-appointed as Non-Executive Independent Director for second term (5 years).

Auditors

• Remuneration of Cost Auditors ratified for FY ending 31 March 2027.

Meeting Details

• Date: 28 July 2026
• Meeting type and mode: Group conference call (virtual)
• Purpose: Discuss Q1 2026 results for quarter ended June 30, 2026
• Event/organiser: Analyst Call conducted by Nelcast Limited
• Recording: Audio recording available on the company's website

AGM Details

• Date: 27 July 2026; Time: 3:30 PM; Mode: VC/OAVM.

Resolutions

• Adopt standalone and consolidated financial statements for FY2026; outcome not disclosed.
• Declare dividend for FY2025-26; outcome not disclosed.
• Director retiring by rotation does not seek re-appointment.
• Appoint director in place of retiring director who offers re-appointment.
• Re-appointment of independent director for a second five-year term.
• Ratify cost auditor remuneration for FY2027.

AGM details and resolutions

• Date, time, mode: 27 July 2026, 3:30 PM, via VC/OAVM.
• Resolution 1 (Ordinary): Adopt standalone and consolidated financial statements for year ended 31 March 2026.
• Resolution 2 (Ordinary): Dividend for FY 2025-26.
• Resolution 3 (Ordinary): Director retiring by rotation does not seek re-appointment.
• Resolution 4 (Special): Re-appoint Balasubramanian (retiring by rotation).
• Resolution 5 (Special): Re-appoint R. Sridharan as independent director for second five-year term.
• Resolution 6 (Ordinary): Ratify remuneration to Cost Auditors for FY ending 31 March 2027.
• Dividend: Amount per share not disclosed.
• Results: Voting outcomes not disclosed; to be submitted to exchanges.
• Directors: D. Sesha Reddy retires; Balasubramanian to be appointed; Sridharan to continue.

Business Overview

• Leading Indian producer of ductile and grey iron castings (160,000 MTPA capacity).
• Covers OEMs and Tier-1 customers in CV, Tractor, Off-Highway, Railways, and Passenger Vehicles.
• Global footprint expanding in North America, Europe, and Southeast Asia.

Operational Highlights

• Q1FY27 revenue ₹345.4 crore, up 2.8% YoY.
• Exports revenue ₹113.3 crore, up 8.2% sequentially.
• Tractor segment contribution rose to 27.1% of revenue from 23.5%.
• M&HCV remains largest revenue contributor, supported by freight and infra activity.
• New products entering production from Q2FY27 with ramps through H2FY27.
• Pedapariya plant ramp-up expected; utilization beyond 40%.
• Exports recovery to continue amid demand tailwinds.
• Strengthening balance sheet to support growth.

Financial Performance

• Total revenue consolidated ₹345.4 crore; EBITDA ₹20.1 crore; PAT ₹5.1 crore.
• EBITDA margin 5.8%; PAT margin 1.5%.
• Export revenue grew 8.2% sequentially to ₹113.3 crore.
• Cash and cash equivalents ₹84.8 crore; total current assets ₹668.0 crore.
• Total assets ₹1,198.7 crore; equity ₹599.4 crore.
• Debt: long-term borrowings ₹36.9 crore; short-term borrowings ₹220.3 crore.

Capital Structure & Liquidity

• Total assets ₹1,198.7 crore; equity ₹599.4 crore.
• Cash and equivalents ₹84.8 crore; current liabilities ₹511.4 crore.
• Long-term borrowings ₹36.9 crore; short-term borrowings ₹220.3 crore.
• Debt-to-equity ratio cited at 0.4x, indicating headroom for growth.

Strategic Priorities & Outlook

• Strategy: New Product Launches, Operational Efficiency, Profitability, and Strong Balance Sheet.
• New product ramp-up expected to drive volumes and margins in H2FY27.
• Capacity to support future expansion; 50,000 MT incremental capacity.
• Exports demand recovery and India as a key auto casting hub.

Risks & Mitigation

• High input costs and labour availability challenges impacted Q1 profitability.
• Export slowdown in US amid geo-political headwinds weighed on revenue.
• Mitigation: cost pass-through initiatives and new product programs to improve margins.

Governance & Leadership

• Chairman: Vinod K. Dasari; board includes D. Sesha Reddy, P. Deepak, Divya, Balasubramanian, Mohan, Sridharan.
• Renewable energy usage ~65% of power; environmental initiatives reflect governance and sustainability.

Financial highlights

• Total revenue for Q1 FY27: Rs 345.4 Cr, up 2.8% YoY from Rs 336.0 Cr.
• EBITDA Rs 20.1 Cr; margin 5.8% vs 9.6% prior year.
• PAT Rs 5.1 Cr; margin 1.5% vs 3.7%.
• Demand across key end markets remained healthy; tractor and CV segments showed momentum.
• Exports improved sequentially; new product launches commence in Q2 FY27.
• Raw material costs elevated due to geopolitical and labor constraints; price revision discussions started.
• Benefits of price revisions expected gradually over coming quarters.
• New product programs commenced in Q2 FY27; ramping up through year, boosting volumes/revenues in H2.
• Capacity utilization expected to improve as demand strengthens and new volumes scale.
• Europe expansion and new business opportunities strengthen long-term growth pipeline; exports improving.
• Installed capacity: 160,000 tonnes per annum; plants at Ponneri, Gudur, Pedapariya.

Business Overview

• Leading Indian producer of ductile and grey iron castings with 160,000 MT/yr capacity.
• Covers Commercial Vehicles, Tractors, Off-Highway Equipment, Railways, and Passenger Vehicles segments.
• Domestic focus with growing exports to North America, Europe, and Southeast Asia.
• Installed capacity across three plants: Gudur, Ponneri, Pedapariya.
• Plan to expand capacity by 50,000 MT within existing plants.

Key Operational Highlights

• Q1FY27 revenue ₹345.4 Cr; EBITDA ₹20.1 Cr; PAT ₹5.1 Cr.
• Tractor segment contribution rose to 27.1% of revenue.
• Export revenue ₹113.3 Cr, up 8.2% sequential.
• New products entering production from Q2FY27; ramp-up through H2FY27.
• Pedapariya plant utilization expected to exceed 40%.
• Installed capacity 60k Gudur, 40k Ponneri, 60k Pedapariya.
• Exports recovery expected as schedules normalize.
• ICRA rating: short-term A1, long-term A.

Financial Performance

• Total revenue ₹345.4 Cr; YoY growth 2.8%.
• EBITDA ₹20.1 Cr; EBITDA margin 5.8%.
• PAT ₹5.1 Cr; PAT margin 1.5%.
• Exports ₹113.3 Cr; export growth sequential 8.2%.
• Total assets ₹1,198.7 Cr; equity ₹599.4 Cr.
• Long-term borrowings ₹36.9 Cr; short-term borrowings ₹220.3 Cr.
• Cash and cash equivalents ₹84.8 Cr.
• Current liabilities ₹511.4 Cr; current assets ₹668.0 Cr.

Capital Structure & Liquidity

• Debt-to-equity around 0.4x, indicating headroom for growth.
• Long-term borrowings ₹36.9 Cr; short-term borrowings ₹220.3 Cr.
• Cash and cash equivalents ₹84.8 Cr.
• ICRA: short-term A1, long-term A rating.

Strategic Priorities & Outlook

• Strategy: New Product Launches, Operational Efficiency, Profitability, and Strong Balance Sheet.
• New products include 500 kg front/rear axles and electrical power steering components.
• Target US tractor and construction equipment markets.
• Pedapariya utilization to exceed 40%; margins to improve with scale.
• ROCE/ROE expansion via operating leverage and better asset utilization.
• Capacity can be expanded by 50,000 MT with minimal investment.

Risks & Mitigation

• Raw material costs elevated; mitigated by cost-pass-through initiatives.
• Labour availability challenges acknowledged; mitigated by productivity improvements.
• Exports slowed in FY26 due to U.S. slowdown; recovery expected.

Governance & Leadership

• Chairman Vinod K Dasari; experienced board with multiple industry veterans.
• ISO 14001, ISO 18001, and ISO 50001 certifications achieved.
• Successful IPO and listing on BSE & NSE.