Swastika Castal Limited H1 FY27 profit rises 30% on margin gain

Swastika Castal Limited reported H1 FY27 profit after tax of Rs 1.71 crore, up 29.60% year on year, as total income rose 23.75% to Rs 21.25 crore and EBITDA margin increased 44 basis points to 15.71%. The result shows profit growing faster than income during the six-month period.

How did SCL perform in H1 FY27?

SCL recorded total income of Rs 21.25 crore in H1 FY27, compared with Rs 17.17 crore in H1 FY26, an increase of 23.75%. Revenue, which excludes other income, rose 25.54% to Rs 20.77 crore from Rs 16.54 crore. This means revenue growth exceeded total-income growth because other income declined to Rs 0.48 crore from Rs 0.63 crore.

SCL’s earnings before interest, tax, depreciation and amortisation, or EBITDA, reached Rs 3.34 crore in H1 FY27, up 27.29% from Rs 2.62 crore in H1 FY26. Profit before tax increased 32.71% to Rs 2.38 crore from Rs 1.80 crore. After tax of Rs 0.67 crore, compared with Rs 0.48 crore a year earlier, profit after tax rose to Rs 1.71 crore from Rs 1.32 crore.

What drove SCL’s income and expenditure changes?

SCL’s Rs 4.23 crore increase in revenue was the main contributor to the Rs 4.08 crore rise in total income between H1 FY26 and H1 FY27. Management attributed the period’s total-income growth of about 24% to demand for precision aluminium castings. The company makes aluminium components through sand, gravity-die and centrifugal casting routes at its Karjan, Vadodara facility.

SCL’s total expenditure rose to Rs 17.91 crore in H1 FY27 from Rs 14.55 crore in H1 FY26, while EBITDA increased by Rs 0.72 crore to Rs 3.34 crore. Raw-material expenses were Rs 11.44 crore versus Rs 9.07 crore, employee costs were Rs 0.95 crore versus Rs 0.86 crore, and other direct and manufacturing expenses were Rs 4.45 crore versus Rs 4.07 crore. Other expenses rose to Rs 1.07 crore from Rs 0.55 crore.

The company’s production model includes in-house T6 heat treatment, computer numerical control machining and helium leak testing, according to its presentation. SCL describes its offerings as ready-to-assemble aluminium components used in high-voltage switchgear and instrument transformers, including cast, heat-treated, machined and validated parts. More than 70% of its product portfolio serves power transmission and distribution applications.

How did SCL’s margins and profit compare with H1 FY26?

SCL’s EBITDA margin was 15.71% in H1 FY27, compared with 15.27% in H1 FY26, an expansion of 44 basis points. A basis point equals one-hundredth of a percentage point. EBITDA therefore grew 27.29%, faster than the 23.75% increase in total income, which is the numerical basis for the higher operating margin.

SCL’s net profit margin, labelled NPM in the presentation, rose 36 basis points to 8.05% from 7.68%. Profit after tax increased 29.60%, faster than total income but slower than profit before tax growth of 32.71%. Finance costs rose to Rs 0.50 crore from Rs 0.44 crore, while depreciation rose to Rs 0.46 crore from Rs 0.39 crore during the same comparison.

SCL reported no exceptional item in either H1 FY27 or H1 FY26, with the line recorded at Rs 0 in both periods. That leaves reported profit before tax after exceptional items at Rs 2.38 crore in H1 FY27, compared with Rs 1.80 crore in H1 FY26. The presentation therefore indicates that the half-year comparison was not affected by an exceptional-item adjustment.

What does SCL say about cash flow and outlook?

SCL’s management said the company generated positive operating cash flow in H1 FY27, alongside profit after tax of Rs 1.71 crore. The presentation does not provide an operating-cash-flow amount, a comparison with H1 FY26, or a reconciliation from EBITDA to cash flow. The statement is consequently an indication of the direction of operating cash generation rather than a quantified cash-flow result.

Chairman and Managing Director Varun Sharda said SCL expects demand support from power transmission and distribution investment, grid modernisation, railway expansion and the use of lightweight aluminium components in industrial applications. The company exports to Europe, Mexico and the USA, and management said global customers’ supply-chain diversification toward Indian manufacturers is supporting export momentum. SCL’s presentation says exports represented 41% of FY26 revenue.

Management plans to deepen SCL’s presence in power transmission and electrical applications, broaden its domestic and international customer base, and increase the share of machined and value-added products. It also said existing capacity has headroom for higher volumes and that capacity expansion is planned in upcoming periods. The presentation gives no capacity number, capital-expenditure amount, completion date or revenue target for that expansion.

Conclusion

SCL’s H1 FY27 result combined 25.54% revenue growth with a 44-basis-point EBITDA-margin increase, lifting EBITDA to Rs 3.34 crore and profit after tax to Rs 1.71 crore. Revenue rose by Rs 4.23 crore, while total expenditure rose by Rs 3.36 crore, allowing operating profit and net profit to grow faster than total income. Management also reported positive operating cash flow, although it did not disclose the amount.

The next disclosed items to watch are SCL’s planned capacity expansion in upcoming periods, the stated effort to raise the share of machined and value-added products, and progress in power transmission, electrical and export markets. Management has identified railways, industrial applications, government projects and defence as emerging opportunities, but the presentation provides no individual order, capacity or timing target for those areas.