Simplex Castings Ltd

Financial Performance

• Q1 FY27 revenue 60.95 crores, up ~35% YoY from 45.21 crores in Q1 FY26
• Q1 FY27 EBITDA 11.52 crores; EBITDA margin 18.89%
• PAT 6.86 crores; PAT margin 11.25% (vs 10.48% prior year)
• Near-term order book ~₹150 crores
• Capital work in progress ~₹30 crores; deployed in working capital and capex
• Capex currently in Tedesra Unit; completion expected in this financial year

Operations & Capex

• Utilization ~50–60% currently; target ≥80% by end of FY28
• Fabrication capacity expansion to 1500 tons/month (18,000 tons/year)
• Foundry debottlenecking: ₹4–5 crore capex for one CNC, conveyors and cranes
• Railway bogies: target ~200 bogies/month; major orders after railway confirmation
• Mazgaon Dock: first 3 sets cast; 5 sets in pipeline; first order ~₹4.5 crores; pipeline ~₹8 crores

Guidance & Outlook

• FY27 revenue guidance around ₹300 crores; on track
• FY28 revenue target around ₹500 crores; capacity expansion planned
• Operating cycle working-capital target 60–70 days by FY28
• Power sector potential ~₹100 crores from next year; L&T/BHL ties mentioned
• Defence share target 5–10%; shipbuilding included to total 10–15% by FY28
• EPC potential ~₹100 crores/year; EPC margins 15–20%; funded via accruals; no fundraise required

Q&A Takeaways

• Q: Capacity utilization; A: 50–60% now; target ≥80% by FY28
• Q: CAPEX location; A: CAPEX mainly at Tedesra unit; completion this year
• Q: Bogie & rail orders; A: ~200 bogies/month capacity; orders follow railways approvals
• Q: EPC opportunity; A: potential ₹100 crores/year; margins 15–20%; no fundraise
• Q: Green hydrogen project; A: GST issue; grant-linked; no commercial opportunity moving forward

Risks & Watchpoints

• Execution risk on large orders and working-capital cycle
• EPC exposure limited by bank limits and GDAs; need for adequate financing
• Defence/shipbuilding mix depends on government tenders and approvals
• Hydrogen project GST treatment created GST-related uncertainty; procurement risk

Post-earnings call recording

• Post-earnings call for quarter ended 30 June 2026 held on 19 Aug 2026; audio recording on investor page.

Meeting Details

• Event: Q1 FY27 Earnings Conference Call; organiser: Merlin Capital IR.
• New date/time: 19 Aug 2026, 04:30 PM IST.
• Type/Mode: group earnings call; virtual (Zoom).
• Participants: Whole-Time Director; Chairman & Executive Director.
• Purpose: discuss financial performance, operational highlights, outlook.
• Presentation: Q1 investor presentation and press release available.

Business Overview

• Core business: heavy engineering, fabrication, machining, and EPC turnkey projects.
• Strategic focus on railways, defence, power, and other high-growth sectors.
• FY27 start: scale-up operations; improve capital efficiency via receivables financing.

Key Operational Highlights

• Q1 FY27 revenue ₹60.95 Cr, up 34.85% YoY.
• PAT ₹6.86 Cr, up 44.76% YoY.
• EBITDA ₹11.52 Cr; EBITDA margin 18.89%.
• Quarterly order book at ₹148.53 Cr.
• RDSO certification for railway bogies enables larger railway opportunities.
• Captive solar project: 5.5 MWp with 25-year PPA.

Financial Performance

• Revenue from Operations: ₹60.95 Cr (Q1 FY27).
• EBITDA: ₹11.52 Cr; margin 18.89%.
• PBT: ₹9.16 Cr; Tax: ₹2.31 Cr; PAT: ₹6.86 Cr.
• PAT Margin: 11.25%; Diluted EPS: ₹1.67.

Capital Structure & Liquidity

• Empanelled on Invoicemart (TReDS) to accelerate receivable realisation.
• Receivables-backed funding reduces cost of funds by ~50% vs bank debt.
• No collateral and no incremental on-balance-sheet debt.

Strategic Priorities & Outlook

• FY28 target: ₹500 Cr revenue; ~10% PAT margin.
• Railways growth: dedicated plant and RDSO-approved execution.
• Defence manufacturing expansion via trial orders and precision casting.
• Opportunities across thermal, power, and other high-growth sectors.
• Exploring inorganic acquisitions to broaden capabilities.

Governance & Leadership

• Chairman & ED: Ketan Shah; Managing Director: Sangeeta Shah.
• Independent Directors: Indu Nagar, Shailesh Jain, Champak Dedhia.
• CFO: Avinash Hariharno.

Q1FY27 highlights

• Revenue from operations: ₹60.95 crore, up 34.85% YoY.
• EBITDA: ₹11.52 crore; margin 18.89%.
• PBT: ₹9.16 crore; up 44.76% YoY.
• PAT: ₹6.86 crore; up 44.76% YoY; PAT margin 11.25%.
• EPS: ₹1.67.
• Near-term order book reached ₹150 crore.

Outlook and demand

• Strong demand across Thermal and Power sectors.
• Focused on disciplined execution and profitable growth across segments.

Order details

• Awarding entity: M/S Infinity Horizon (domestic).
• Scope: 1200 MT of fabricated steel structures manufactured and supplied.
• Contract value: ₹10.80 crores.
• Timeline: 5 months.
• Promoter/related party interest: None.

Key governance update

• Change in authorization for determining materiality of events and disclosures under Regulation 30(5) LODR.
• Mr Chandra Shekhar Sahu appointed Company Secretary effective 14 August 2026.
• Board authorized KMPs to determine materiality and disclosures.
• Authorized KMPs: Sangeeta Shah (MD); Ketan Shah (WTD); Avinash Hariharno (WTD); Rajesh Acharya (CFO); Chandra Sahu (CS).
• Regulatory basis: Regulation 30(5) of SEBI Listing Regulations, 2015.
• Appointment of CS effective date: 14 August 2026.
• No reported impact on operations or financials in this update.

Financial results

• Unaudited quarterly results for quarter ended 30 June 2026 approved with Limited Review Report (Annexure-I).

Appointments and AGM

• Chandra Shekhar Sahu appointed Company Secretary and Compliance Officer, effective 14 August 2026.
• 46th AGM scheduled for 16 September 2026 at 3 PM via Video Conferencing.
• Scrutinizer appointed for AGM e-voting: M/s Meena Naidu & Associates.

Auditors

• To fill casual vacancy, MDN & Associates appointed as Statutory Auditor, subject to AGM approval.
• Proposed five-year tenure for MDN & Associates from AGM 2026 to 2031.
• Internal Auditor appointed: Nistha Agrawal & Co for FY 2026-27.

Fundraising and fund utilization

• Deviation statement for funds raised on 28.03.2026 shows ₹20.75 Cr fully utilized for working capital.
• Shareholders approved preferential issue up to ₹49.90 Cr; raised ₹21.00 Cr by 31.03.2026.
• Funds raised on 31.03.2026 ₹0.25 Cr fully utilized for working capital.
• Original objects: working capital for Railway bogies and long-term power sector fabrication.