Steelcast raises planned foundry capacity to 40,750 tonnes

STEELCAST LIMITED approved a further Rs 31 crore on November 13, 2026 to add 3,250 tonnes at its greenfield foundry, taking planned capacity to 40,750 tonnes. The combined programme comprises Rs 151 crore for 11,750 tonnes of additions, while the latest increment is scheduled to be added by March 31, 2028.

Why has Steelcast increased its foundry expansion plan?

Steelcast increased the expansion plan because it said it foresees more demand from customers than when it approved an 8,500-tonne addition on July 29, 2026. The board approved a further 3,250 tonnes on November 13, 2026, raising the cumulative planned capacity addition to 11,750 tonnes.

Steelcast said its existing capacity utilisation is projected at 60% for financial year 2026-27 and it expects utilisation to reach 90% by March 31, 2029. Management said the earlier 8,500-tonne expansion was initiated on this expected utilisation trajectory, while the additional 3,250 tonnes reflects its view of further customer demand.

The November approval adds Rs 31 crore to the Rs 120 crore approved in July 2026. Steelcast therefore disclosed a total investment of Rs 151 crore for the 11,750-tonne expansion, with internal accruals listed as the mode of financing in the capacity-addition disclosure.

What will Steelcast’s capacity be after the project?

Steelcast’s planned installed capacity will be 40,750 tonnes after the approved additions, compared with existing installed capacity of 29,000 tonnes. The difference is the combined 11,750 tonnes from the 8,500-tonne July approval and the 3,250-tonne November approval.

Steelcast described the latest 3,250-tonne addition as part of its greenfield foundry. The November 13 disclosure does not split the planned 40,750-tonne capacity by casting product, customer, geography or facility, and it does not give separate completion stages for the 8,500 tonnes and 3,250 tonnes.

The 60% and 90% utilisation figures should be read against different dates from the disclosed capacity figures. Steelcast’s 60% is a projected utilisation level for financial year 2026-27 on existing 29,000-tonne capacity, while the 90% figure is management’s expectation for March 31, 2029 rather than a reported result on the planned 40,750-tonne base.

When will Steelcast add the extra 3,250 tonnes?

Steelcast said the proposed additional 3,250 tonnes will be added within two years, by March 31, 2028. This timing was disclosed with the Regulation 30 capacity-addition details issued after the November 13, 2026 board meeting.

The filing combines the two approvals into Rs 151 crore of investment and 11,750 tonnes of additions, but specifies the March 31, 2028 deadline for the latest 3,250-tonne increment. Steelcast did not provide a separate commissioning date or a phased timeline for the 8,500 tonnes approved on July 29, 2026.

Steelcast approved the additional investment at its 297th board meeting in Bhavnagar, Gujarat, held from 14:55 hours to 16:00 hours on November 13, 2026. At the same meeting, the board considered and approved unaudited standalone financial results for the quarter and half year ended September 30, 2026.

The board also declared a second interim dividend of Rs 0.45 per equity share of face value Re. 1 for financial year 2026-27. Steelcast fixed November 20, 2026 as the record date and said payment would be made within 30 days of declaration, on or before December 13, 2026; this dividend decision is separate from the Rs 151 crore expansion plan.

What financial context did Steelcast report with the approval?

Steelcast reported net sales or income from operations of Rs 138.0212 crore for the quarter ended September 30, 2026, compared with Rs 106.6505 crore for the quarter ended September 30, 2025. For the half year ended September 30, 2026, net sales were Rs 262.8409 crore, compared with Rs 213.336 crore in the corresponding previous half year.

Profit after tax was Rs 23.6994 crore in the September 2026 quarter, compared with Rs 23.214 crore a year earlier and Rs 23.7123 crore in the June 2026 quarter. For the half year ended September 30, 2026, profit after tax was Rs 47.4117 crore, up from Rs 43.0965 crore in the corresponding prior-year period.

Steelcast reported one operating segment, the Casting Business, in its September 30, 2026 results. As a result, the filing contains no product-level revenue, profitability or demand data that identifies which castings are expected to absorb the proposed 11,750 tonnes of additional capacity.

Steelcast reported capital work-in-progress of Rs 16.85 crore at September 30, 2026, compared with Rs 1.2438 crore at March 31, 2026. Property, plant and equipment stood at Rs 155.2635 crore at September 30, 2026, compared with Rs 158.0969 crore at March 31, 2026, but the filing does not identify how much capital work-in-progress relates to the greenfield foundry programme.

Conclusion

Steelcast has expanded its approved greenfield foundry plan from 8,500 tonnes to 11,750 tonnes, raising planned installed capacity from 29,000 tonnes to 40,750 tonnes. The Rs 151 crore programme follows management’s stated expectation that capacity utilisation will move from a projected 60% in financial year 2026-27 to 90% by March 31, 2029.

The next disclosed project date is March 31, 2028, when Steelcast says the additional 3,250 tonnes is to be added. Progress disclosures on the earlier 8,500 tonnes, spending from internal accruals and movement toward the March 2029 utilisation expectation are the stated matters to watch next.