Steelcast September-quarter profit rises 11% to Rs 23.70 crore

Steelcast Limited reported profit of Rs 23.70 crore for the quarter ended September 30, 2026, up 11% from Rs 23.21 crore a year earlier, as operating sales rose 29% to Rs 138.02 crore. For the first half, Steelcast’s sales reached Rs 262.84 crore and profit increased 10% to Rs 47.41 crore.

How did Steelcast perform in the September 2026 quarter?

Steelcast increased quarterly profit to Rs 23.70 crore in the quarter ended September 30, 2026, from Rs 23.21 crore in the quarter ended September 30, 2025. Profit was broadly unchanged from Rs 23.71 crore in the June 2026 quarter, while profit before tax rose to Rs 31.92 crore from Rs 30.95 crore a year earlier.

Operating sales were Rs 138.02 crore, compared with Rs 106.65 crore in the year-earlier quarter and Rs 124.82 crore in the preceding quarter. Total income rose to Rs 139.92 crore from Rs 110.60 crore year on year, although other income declined to Rs 1.90 crore from Rs 3.95 crore.

Steelcast reported basic and diluted earnings per share of Rs 2.34 for the September quarter, compared with Rs 2.29 a year earlier. The unaudited standalone results were reviewed by the audit committee and approved by the board on November 13, 2026.

What changed in Steelcast’s September-quarter costs?

Steelcast’s total expenses rose to Rs 108.00 crore in the September 2026 quarter from Rs 79.65 crore a year earlier, an increase of about 36%, compared with a 26% rise in total income. The increase meant profit before tax grew by about 3% despite the Rs 31.37 crore increase in operating sales.

Cost of materials consumed increased to Rs 29.54 crore from Rs 18.89 crore, while manufacturing expenses rose to Rs 18.02 crore from Rs 11.85 crore. Power, fuel and water charges reached Rs 17.23 crore from Rs 10.56 crore, and consumption of stores and spares increased to Rs 18.91 crore from Rs 13.34 crore.

Employee benefit expense was Rs 15.28 crore, up from Rs 12.96 crore, while finance cost increased to Rs 0.42 crore from Rs 0.04 crore. Changes in inventories of finished goods and work-in-progress were negative Rs 0.25 crore, versus a positive Rs 4.30 crore in the September 2025 quarter, and total tax expense rose to Rs 8.22 crore from Rs 7.74 crore.

What were Steelcast’s first-half FY 2026-27 results?

Steelcast reported first-half operating sales of Rs 262.84 crore for the period ended September 30, 2026, up 23% from Rs 213.34 crore in the corresponding prior-year period. First-half profit rose 10% to Rs 47.41 crore from Rs 43.10 crore, while profit before tax increased 11% to Rs 63.70 crore.

Total income rose to Rs 267.98 crore from Rs 220.01 crore, with other income falling to Rs 5.14 crore from Rs 6.68 crore. Total expenses increased 26% to Rs 204.29 crore from Rs 162.40 crore, exceeding the rate of total-income growth over the comparable half-year periods.

Steelcast’s first-half basic and diluted earnings per share were Rs 4.68, compared with Rs 4.26 a year earlier. The company reported one operating segment, casting business, and disclosed that it had no subsidiary, associate or joint venture as of September 30, 2026.

How did Steelcast’s working capital and operating cash flow change?

Steelcast’s inventory rose to Rs 62.60 crore at September 30, 2026 from Rs 40.82 crore at March 31, 2026, an increase of Rs 21.78 crore. Trade receivables increased to Rs 113.77 crore from Rs 108.25 crore, while current assets rose to Rs 282.54 crore from Rs 260.60 crore.

The first-half cash-flow statement showed Rs 21.78 crore used for inventory and Rs 9.13 crore used for trade receivables. In the corresponding prior-year half, inventory used Rs 2.06 crore while trade receivables generated Rs 8.69 crore, showing a change in the cash effect of these two working-capital items.

Cash generated from operations before direct taxes was Rs 44.10 crore, compared with Rs 56.31 crore a year earlier. After direct tax payments of Rs 14.84 crore, net cash from operating activities was Rs 29.26 crore, down from Rs 44.19 crore in the prior-year first half.

Steelcast held cash and cash equivalents of Rs 0.74 crore at September 30, 2026, compared with Rs 1.35 crore at March 31, 2026. Capital work-in-progress increased to Rs 16.85 crore from Rs 1.24 crore, while property, plant and equipment declined to Rs 155.26 crore from Rs 158.10 crore.

What expansion and dividend has Steelcast approved?

Steelcast approved a further Rs 31 crore investment in its greenfield foundry for 3,250 tonnes of additional capacity on November 13, 2026. The approval follows the Rs 120 crore investment for 8,500 tonnes approved on July 29, 2026, taking planned investment to Rs 151 crore and aggregate capacity addition to 11,750 tonnes.

The approved additions would increase total capacity to 40,750 tonnes from the existing 29,000 tonnes. Steelcast said the further 3,250 tonnes are to be added within two years, by March 31, 2028, and the investment will be funded through internal accruals.

Management disclosed projected capacity utilisation of 60% for FY 2026-27 and said it expects utilisation to reach 90% by March 31, 2029. Management cited expected customer demand as the rationale for the further capacity addition beyond the initially approved 8,500 tonnes.

Steelcast also declared a second interim dividend of Rs 0.45 per Re 1 equity share for FY 2026-27. The record date is November 20, 2026, and the company said payment would be made within 30 days of declaration, on or before December 13, 2026.

Conclusion

Steelcast converted higher September-quarter and first-half sales into year-on-year profit growth, with quarterly profit reaching Rs 23.70 crore and first-half profit reaching Rs 47.41 crore. Expenses rose faster than total income in the first half, while the Rs 21.78 crore inventory increase and higher receivables coincided with net operating cash flow falling to Rs 29.26 crore.

The next disclosed event is the November 20, 2026 record date for the Rs 0.45 second interim dividend, followed by payment due on or before December 13, 2026. Longer term, Steelcast’s disclosed milestones are the additional 3,250-tonne capacity by March 31, 2028 and management’s stated expectation of 90% capacity utilisation by March 31, 2029.