Nelcast FY26 revenue ₹1,342 crore; PAT jumps 30%

Key takeaway from Nelcast’s FY26 print

Nelcast Ltd (BOM:532864) reported a steady improvement in profitability in FY26, even as exports stayed weak for most of the year and some plants operated at low utilisation. Total revenue for FY26 was reported at ₹1,342.4 crore, up 5.8% year-on-year (YoY). EBITDA rose faster than revenue, up 17.8% to ₹124.5 crore, lifting the EBITDA margin to 9.3% from 8.3% in FY25. Profit after tax (PAT) increased 29.9% to ₹48.4 crore, with PAT margin improving to 3.6%. Management also flagged progress on strategic initiatives such as the ramp-up of the Pedaparia plant and new product development.

FY26 profitability improved faster than revenue

The FY26 outcome shows a clear gap between top-line growth and operating profit growth. Nelcast cited better utilisation, cost discipline, and an improving product mix as drivers of margin expansion through the year. EBITDA per kg improved to 13.6 in FY26 from 12.6 in FY25, indicating a stronger realisation or mix effect, even with pressure building in the last quarter. The improvement in PAT margin to 3.6% suggests operating gains and financial discipline flowed through to net profit. Alongside profitability, Nelcast reported improved financial flexibility with debt-to-equity down to 0.4x from 0.5x a year earlier.

Q4FY26: double-digit growth, but margin headwinds

For Q4FY26, Nelcast reported consolidated revenue growth of 11.0% YoY to ₹371.2 crore, while PAT rose 12.7% YoY to ₹15.3 crore. Separate disclosures also described audited standalone revenue from operations of ₹368.2 crore in Q4FY26 versus ₹320.8 crore in Q4FY25, with net profit of ₹15.3 crore versus ₹13.5 crore.

Profit before tax (PBT) for the quarter was reported at ₹20.63 crore (₹2,062.82 lakh). Earnings per share for Q4FY26 stood at ₹1.76 compared with ₹1.56 in Q4FY25. Despite revenue momentum, operational efficiency was described as facing headwinds in the quarter, with an EBITDA margin reported at 8.66% versus about 9.0% a year earlier and EBITDA of ₹31.9 crore (up 7.4% YoY).

Revenue mix shifted towards MHCV and tractors

Nelcast’s revenue mix changed meaningfully during FY26, reflecting stronger domestic segments. The contribution from M&HCV rose to 42% in FY26 from 37% in FY25. Tractors increased to 24% from 23%. Management commentary linked domestic strength to healthy freight movement and infrastructure activity, while the tractor segment was described as stable with support from rural development.

This domestic mix mattered because exports were weaker for much of the year. With a higher weight of domestic segments, Nelcast could sustain volumes and improve overall utilisation across facilities, even if individual plants faced pockets of under-absorption.

Exports: FY26 decline, late Q4 pickup

Export revenue fell to ₹384.9 crore in FY26 from ₹445.2 crore in FY25. The decline was attributed to a slowdown in the U.S. economy amid geo-political headwinds. Management said export demand remained below last year’s levels for most of FY26 but picked up towards the end of Q4, led by the U.S. market. The sequential improvement in Q4 was also linked to pre-buying ahead of emission-related changes and a gradual normalisation of customer schedules.

Nelcast indicated that North America accounts for roughly 80% of its export mix, underlining the company’s sensitivity to U.S. demand cycles and tariff-related impacts.

Plant utilisation: Gudur and Pedaparia ran below potential

Utilisation remained a key operating constraint in FY26. The Gudur plant ran at about 55% capacity utilisation, primarily due to export-driven production and tariff impacts. The Pedaparia plant operated at only 27% utilisation for the year, indicating meaningful underutilisation.

Management also noted that EBITDA per kg moderated in Q4 due to lower export contributions and higher raw material prices. This aligns with the broader quarter narrative of strong revenue but limited conversion into profitability gains compared with the full-year trend.

Strategic initiatives and execution themes

Nelcast reported “significant progress” in strategic initiatives, highlighting the ramp-up of the Pedaparia plant and new product development. The company also pointed to increasing contribution from higher-value and more complex products, supporting margin improvement across FY26.

Even with these positives, the disclosures suggest the operating model still depends on better absorption of fixed costs at underutilised sites, and on stabilising export-driven schedules to reduce volatility in product mix and profitability.

Risks flagged for early FY27

One operational risk highlighted was labour availability, which could impact operations at the start of FY27. Separately, the company’s FY26 experience shows export demand and tariff dynamics can materially affect utilisation at export-linked facilities.

Management commentary also said overall sentiment has improved and it expects momentum to continue into FY27, but the FY26 numbers show the base still includes soft exports and underutilised capacity.

Key numbers snapshot

Operational and market impact points to watch

For investors, the FY26 print highlights three operational levers. First is export normalisation, especially because North America is about 80% of the export mix. Second is utilisation recovery at Gudur (about 55% in FY26) and Pedaparia (27%), which can influence margin resilience in weaker demand phases. Third is raw material inflation sensitivity, as Q4 showed EBITDA per kg moderating when exports softened and input prices rose.

A separate audited financial results announcement also reported consolidated revenue of ₹1,328.4 crore in FY26, up 4.7% from ₹1,268.79 crore, and PBT rising 8.3% to ₹49.30 crore from ₹45.54 crore. Taken together with the ₹1,342.4 crore total revenue and ₹48.4 crore PAT figures shared in commentary, the disclosures collectively point to an FY26 defined more by profitability improvements than aggressive top-line expansion.

Conclusion

Nelcast ended FY26 with modest revenue growth but stronger profitability, supported by product mix and cost discipline, while exports and plant utilisation remained constraints. The next set of updates in FY27 will likely be watched for export recovery pace, utilisation improvement at Gudur and Pedaparia, and execution amid the labour availability risk flagged for the start of the year.