Alicon Castalloy Limited revenue climbs 51% as profit rises 27%

Alicon Castalloy Limited reported consolidated revenue from operations of Rs 649.84 crore for the quarter ended September 30, 2026, up 51% year on year, while net profit rose 27% to Rs 17.60 crore. The difference reflected higher material, employee, depreciation and other expenses during the quarter.

How did Alicon Castalloy perform in the September 2026 quarter?

Alicon Castalloy’s revenue grew faster than its net profit in the quarter ended September 30, 2026. Revenue from operations increased by Rs 219.92 crore from Rs 429.92 crore in the quarter ended September 30, 2025 to Rs 649.84 crore. Total income, including other income, rose to Rs 651.98 crore from Rs 433.61 crore.

Net profit increased by Rs 3.71 crore to Rs 17.60 crore from Rs 13.89 crore a year earlier. Profit before tax rose 26% to Rs 23.87 crore from Rs 19.02 crore, while total expenses increased 51% to Rs 628.11 crore. Basic earnings per share, which the company said was not annualised, increased to Rs 10.78 from Rs 8.50.

Alicon Castalloy also reported sequential improvement from the quarter ended June 30, 2026. Revenue from operations rose 12% from Rs 578.01 crore, while net profit increased from Rs 11.45 crore. Profit before tax increased to Rs 23.87 crore from Rs 18.26 crore over the preceding quarter.

Why did Alicon Castalloy’s profit trail revenue growth?

Alicon Castalloy’s profit grew more slowly because several cost lines increased alongside the 51% rise in sales. Cost of materials consumed rose 78% to Rs 406.05 crore from Rs 228.31 crore, exceeding revenue growth. Materials were the largest expense line, followed by other expenses of Rs 132.30 crore and employee benefits expense of Rs 60.69 crore.

Employee benefits expense rose 13% from Rs 53.86 crore, while depreciation and amortisation increased 13% from Rs 26.64 crore to Rs 30.10 crore. Other expenses rose 31% from Rs 100.65 crore. Finance costs declined 2% year on year to Rs 11.33 crore from Rs 11.56 crore, although they were above Rs 10.20 crore in the June 2026 quarter.

The results also included a Rs 12.46 crore reduction arising from changes in inventories of finished goods, stock-in-trade and work-in-progress, compared with a Rs 16.67 lakh reduction in the September 2025 quarter. Purchases of stock-in-trade fell to Rs 9.65 lakh from Rs 57.17 lakh, while total expenses nevertheless increased by Rs 213.52 crore year on year.

What did Alicon Castalloy’s half-year results show?

Alicon Castalloy reported revenue from operations of Rs 1,227.85 crore for the half year ended September 30, 2026, up 45% from Rs 849.03 crore in the corresponding 2025 period. Net profit increased 25% to Rs 29.05 crore from Rs 23.20 crore, while total income rose to Rs 1,231.05 crore from Rs 854.80 crore.

Profit before tax for the six months rose 33% to Rs 42.13 crore from Rs 31.61 crore. Total expenses increased 45% to Rs 1,188.92 crore from Rs 820.63 crore. Basic half-year earnings per share rose to Rs 17.78 from Rs 14.16, and the filing said earnings per share was not annualised.

Half-year materials consumed rose to Rs 765.86 crore from Rs 450.98 crore, while other expenses increased to Rs 250.27 crore from Rs 192.92 crore. Employee benefits expense rose to Rs 115.26 crore from Rs 104.22 crore. Finance costs declined to Rs 21.53 crore from Rs 22.54 crore despite the increase in revenue.

What changed in Alicon Castalloy’s balance sheet and cash flow?

Alicon Castalloy’s total assets increased to Rs 1,610.02 crore at September 30, 2026 from Rs 1,441.59 crore at March 31, 2026. Trade receivables rose to Rs 629.72 crore from Rs 534.68 crore, inventories increased to Rs 191.95 crore from Rs 160.94 crore, and cash and cash equivalents rose to Rs 23.84 crore from Rs 18.81 crore.

Total equity increased to Rs 641.95 crore from Rs 628.30 crore during the six-month period. Current borrowings rose to Rs 256.81 crore from Rs 222.78 crore, while non-current borrowings declined to Rs 90.13 crore from Rs 102.26 crore. Trade payables owed to entities other than micro and small enterprises increased to Rs 416.56 crore from Rs 328.62 crore.

Net cash flow from operating activities fell to Rs 46.36 crore for the half year ended September 30, 2026 from Rs 116.46 crore a year earlier. The cash-flow statement recorded a Rs 87.95 crore increase in trade receivables and a Rs 31.53 crore increase in inventories, partly offset by a Rs 64.74 crore increase in trade payables. Net investing cash outflow decreased to Rs 25.33 crore from Rs 56.17 crore.

What reporting matters should readers note about Alicon Castalloy’s results?

Alicon Castalloy’s consolidated results for the quarter ended September 30, 2026 were unaudited and reviewed by Kirtane & Pandit LLP, whose report was dated November 12, 2026. The auditor said nothing had come to its attention that caused it to believe the statement did not contain the disclosures required under listing regulations or contained a material misstatement. The report stated that a review provides moderate assurance and is less extensive than an audit.

The group includes Alicon Holding GmbH, Illichmann Castalloy GmbH and Illichmann Castalloy s.r.o. along with Alicon Castalloy. The company said it operates in one segment, aluminium alloy castings. The auditor noted that one subsidiary and one step-down subsidiary had unaudited interim information, with total assets of Rs 27.64 crore at September 30, 2026 and quarterly revenue of Rs 4.15 crore; management considered that information not material to the group.

The filing describes an exceptional expense of Rs 2.57 crore in the June 2025 quarter for settlement of a past legal claim related to sales commission, which it says was a one-time expense without an ongoing operational effect. Separately, Alicon Castalloy said it was assessing the impact of Labour Codes rules notified by the Central Government on May 9, 2026, after recording Rs 5.00 crore for gratuity and compensated absences in the quarter and period ended December 31, 2025.

Conclusion

Alicon Castalloy delivered substantial consolidated revenue growth in the September 2026 quarter, but profit growth was lower as materials, employee costs, depreciation and other expenses rose. The half-year figures showed the same pattern, with revenue up 45% to Rs 1,227.85 crore and net profit up 25% to Rs 29.05 crore.

The next disclosed matter to watch is Alicon Castalloy’s assessment of the Labour Codes rules notified on May 9, 2026, as the company said it will account for any impact after completing that assessment. The movement in receivables of Rs 629.72 crore, inventories of Rs 191.95 crore and operating cash flow of Rs 46.36 crore will also remain relevant in subsequent results.