Steelcast Ltd

Dematerialisation status

• Dematerialisation requests were processed and confirmed to depositories.
• Securities dematerialised have been listed on the stock exchanges where existing securities are listed.
• Physical certificates were mutilated and cancelled; depository name substituted as registered owner within prescribed timeline.

Final dividend record date

• Record date fixed at 24.07.2026 for final dividend FY 2025-26, subject to AGM approval on 29.07.2026.

Key dates and actions

• Book closure from 25 July 2026 to 29 July 2026, both days inclusive.
• Purpose: for 55th AGM and determining dividend-eligibility for FY 2025-26.
• Cut-off date for e-voting: 22 July 2026.
• Remote e-voting window: 26 July 2026, 9:00 am IST to 28 July 2026, 5:00 pm IST.
• AGM date: 29 July 2026.
• Security: equity shares.
• Dividend, if approved, will be paid within 30 days from declaration.

Overview

• Standalone BRSR for FY2025-26; Steelcast's main activity is steel and alloys castings.
• Exports account for 60% of turnover; 100% turnover from manufacturing.
• Five sites in India: four foundries and one machine shop.

Key ESG Risks & Opportunities

• Circular Economy Opportunity: recycling water and sand to net-zero discharge, reducing input costs.
• Climate Change Opportunity: carbon reduction and renewable energy with Scope 1/2 targets.
• Health & Safety Opportunity: safer work environment enhances productivity.
• Energy Efficiency Opportunity: process improvements and renewables lower costs.
• Customer Engagement Opportunity: stronger customer-centric approach boosts retention.
• Community relations & engagement Opportunity: strong community ties support smooth operations.
• Human capital development Opportunity: in-house skill development aligns with future-ready workforce.
• Ethics & Governance Opportunity: governance benchmarking strengthens brand value.
• Employee Engagement Opportunity: highly engaged workforce improves productivity.

Governance & Policy Highlights

• Board-level Risk Management Committee oversees sustainability issues.
• Managing Director leads ESG implementation under board guidance.
• Policies include General Code of Conduct, anti-bribery, whistle-blower, and vigil mechanisms.
• Assurance: no external ESG assurance obtained.
• Certifications include ISO 9001/9002, ISO 14001, ISO 45001, EN 9100, IRIS, NABL.
• Training coverage: Board 100%, KMP 100%, employees 95%, workers 90%.

Social Responsibility & Workforce

• Total employees 370; total workers 711; female board representation 20%.
• Turnover FY25-26: permanent staff 8.32%; permanent workers 11.64%.
• Well-being spend: 0.32% of revenue for FY2025-26.
• Retirement benefits: PF, gratuity, and ESI coverage 100% for all.
• Premises are accessible to differently abled personnel; equal opportunity policy is in place.
• CSR focus includes education, health care, women empowerment, skill development; aspirational district spend in Bhavnagar.

Environmental Performance

• Total energy: 2,86,593.35 GJ; renewables 90,027.29 GJ; non-renewables 1,96,566.06 GJ.
• Energy intensity: 0.000065 GJ per rupee of turnover.
• Water withdrawal: 74,587 kL; water intensity: 0.000017.
• Scope 1: 12,646 tCO2e; Scope 2: 28,475 tCO2e; net emissions 9,219 tCO2e after offsets.
• Scope 3: 166 tCO2e; total waste 64.456 MT; plastic 29.582 MT; hazardous waste 34.874 MT.
• Zero Liquid Discharge: STP facilities used to meet effluent standards.
• Air emissions: NOx 9.69 ppm; SOx 6.08 ppm; PM 14.81 mg/Nm3; external consultant engaged.
• Certifications include ISO 14001, EN 9100, NABL; no PAT targets achieved to date.

Stakeholder Engagement & Complaints

• Stakeholders include shareholders, suppliers, employees, customers, and communities; engagement via email, website, meetings.
• Community grievances handled through site-level committee; regular informal community sessions conducted.
• Complaints: minimal; no unresolved complaints reported; POSH complaints nil.
• Public policy input provided via trade associations; governance review conducted by board on select topics.

Other Notable Metrics

• Direct purchases from MSMEs/marginalized groups: 57.58% of total inputs; 70.44% from district areas.
• Affiliations with 16 trade/industry chambers; top associations include CII, EEPC India, IIIF, NABL.
• Data privacy: policy framework under development; no reported data breaches.
• CSR spend in aspirational districts: Bhavnagar 19,365,475 INR; other district 100,000 INR.
• Beneficiaries: in-house skill development (200); education (145,000); women empowerment (3,400); health care (18,000).

Financial performance

• FY26 revenue: INR 438.62 Cr; FY25: INR 380.61 Cr; +15.24% YoY
• EBITDA: INR 129.64 Cr; EBITDA margin 30.64%
• PAT: INR 86.86 Cr; PAT margin 20.53%
• ROCE: 28.86%
• Net debt: INR 872.65 Lakh; gearing 2.16%
• EPS: INR 8.58; basic/diluted
• Exports ~60% of revenue; footprint in 16 countries
• Order book: INR 111.54 Cr for execution next ~3 months

Operations & geography

• Exports account for 60% of revenue; 16-country footprint
• Domestic revenue ~40%, exports 60%
• Bhavnagar plant capacity 29,000 TPA; FY26 utilisation 48%
• Product range 5 kg–2,500 kg; 63 parts in development; 38 new parts in FY26
• R&D pipeline: 111 parts over three years; 13,903 MT sold FY26
• Share of fully machined components approx. 75%
• Export growth driven by China+1 strategy; 60% of revenue from exports

Dividend & capital returns

• Interim dividends paid totaling INR 11.84 Cr
• Final dividend proposed: INR 5.46 Cr; total annual dividend ~INR 17.30 Cr
• Total dividend payout about 171% for FY26
• Book closure: 25–29 July 2026; Record date: 24 July 2026

Governance & risk

• AGM date: 29 July 2026; Venue: Bhavnagar
• Statutory auditors: Ravi Karia & Associates; Secretarial Auditor: D.G. Bhimani
• Cost Auditor remuneration: Rs 95,000; Board comprises 5 Independent Directors and 4 Executives
• Related party transactions disclosed; omnibus approvals by Audit Committee
• Internal controls and risk management framework in place; governance disclosures as per SEBI LODR

ESG & sustainability

• 80% of captive power from renewable energy; 11.9 MW installed; 9.5 MW operational
• 4 MW hybrid power plant to be commissioned by Dec 31, 2026
• Net Zero target by FY2029-30; energy transition to electricity-based processes
• Total Scope 1 emissions: 12,646 tCO2e; Scope 2: 28,475 tCO2e; net 9,219 tCO2e
• ISO 14001:2015 and other certifications; CSR focus on education, health, skill development

CSR & community

• CSR expenditure: INR 154.65 Lakh; CSR obligation: INR 193.81 Lakh; surplus ₹0.85 Lakh
• Major CSR efforts include Steelcast Education Trust and Shree Prathna Health & Education Trust
• Impact: 198 trainees at in-house Skill Development Centre; 145,000 educated; 18,000 served by health programs
• Beneficiaries include Bhavnagar district; aspirational district support in Gujarat/Madhya Pradesh

Related parties & audits

• MD remuneration 592.53 Lakh; total KMP remuneration 870.32 Lakh
• RPTs with Steelcast Education Trust and F P Tamboli Charitable Trust
• Auditors’ report: unmodified; cost auditor remuneration Rs 95,000
• Policy on related party transactions accessible on company site; Omnibus approvals disclosed

Industry & outlook

• Global metal casting market to reach USD 352.4 B by 2034; CAGR ~6.7%
• India remains growth leader; govt initiatives like PLI support manufacturing
• China+1 reshapes sourcing; India benefits from diversified supply chains for OEMs

Financial Performance 📊

• Q3 FY26 revenue declined 3.08% YoY to INR 97.4 crore from INR 100.5 crore.
• EBITDA rose 6.81% YoY to INR 31.21 crore; margin improved 297 bps to 32.04%.
• PBT increased 8.01% YoY to INR 27.89 crore; margin up 294 bps to 28.63%.
• PAT grew 7.17% YoY to INR 20.59 crore; margin expanded 202 bps to 21.14%.
• Exports contributed ~63% of revenues; domestic sales ~37%.
• Foreign exchange gain INR 1.41 crore; purchase price variance INR 1.09 crore; cost reduction INR 0.9 crore.

Operational Highlights & Outlook 🔧

• Capacity utilization was 46% in Q3 FY26; expected 58% in FY27 and ~90% by FY29.
• Order book INR 115 crore, executable in Q4 FY26, with sustainable EBITDA margins of 27-28%.
• Developing 144 parts over FY25-FY27; tooling and sample orders secured for FY27 parts.
• 2.4 MW hybrid power plant commissioning by June 2026; annual savings INR 3.5-4 crore expected.
• Targeting 11% revenue growth in FY26 over FY25.
• Export markets expanding from 16 to 18 countries; EU exports to rise from 15% to 20% next year.

Q&A Highlights ❓

• Capacity utilization confirmed at 46% Q3 FY26, 58% FY27, ~90% FY29.
• Export footprint to add 2 new countries in next 60-90 days.
• Defense segment: serial export orders expected soon for combat vehicle parts with Israeli partner.
• Raw material cost decline due to lower steel prices; cost pass-through mechanism active; no shortages.
• Domestic vs export volume split expected ~40:60; value split currently 37% domestic, 63% export.
• US tariff impact: no price cuts; customers optimistic; discount requests unlikely.
• Margin guidance conservative; sustainable margins around 27.5-28% despite volume growth.
• FY27 capex planned at INR 35 crore for new space and equipment; further capex post 75% utilization.
• Other income rise due to higher interest income from government securities and fixed deposits.

Business Model & Strategy

• Steelcast manufactures precision steel castings for global OEMs in automotive, defense, construction.
• Focus on geographic and sector diversification to mitigate geopolitical and tariff risks.
• Emphasis on new product development and scaling serial supplies to drive volume and utilization growth.