Simplex Castings Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 28 May 2026 | Industrial Products | Market Cap: ₹437 Cr
Simplex Castings expects a strong future growth trajectory, aiming for INR 500 crores revenue run rate from current levels around INR 222 crores (2018 baseline). Simplex Castings is targeting a revenue run rate increase from around INR222 crores (2018) to INR500 crores, implying a 40-50% CAGR.
From Simplex Castings Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹120
Market Cap
₹437 Cr
P/E Ratio
18.2
How does Simplex Castings Ltd rank in Industrial Products?
Compare Simplex Castings Ltd against every Industrial Products company this quarter on revenue, margins and earnings-call signals.
Simplex Castings Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹48 Cr, net profit ₹5 Cr.
Full financials →📊 Revenue & Sales Performance
- →Simplex Castings expects a strong future growth trajectory, aiming for INR 500 crores revenue run rate from current levels around INR 222 crores (2018 baseline).
- →Anticipated Compound Annual Growth Rate (CAGR) is 40-50% driven by both volume and realization growth.
- →Existing facilities are set to almost double their turnover compared to 2018-'19.
- →Capacity utilization currently supports INR 300 crores; expansion through added machinery and manpower, not necessarily new plants.
- →Growth fueled by upcoming projects in railways, defense, power, and steel sectors.
- →New segments like defense expected to generate higher margins and contribute to revenue growth.
- →Strategic approach includes acquisitions (targeting Europe/Canada), diversification into non-ferrous and centrifugal castings.
- →Development orders in railways and increased naval casting participation will add to incremental revenues.
- →Focus on execution capability to effectively convert order inflows into revenue growth.
📈 Profitability & Margins
- →Simplex Castings is targeting a revenue run rate increase from around INR222 crores (2018) to INR500 crores, implying a 40-50% CAGR.
- →Existing units are doubling turnover from INR70-80 crores to INR200 crores, with a significant reduction in debt (from INR130 crores to INR50 crores).
- →EBITDA margins expected to improve from current ~17-18% to above 20% due to entry into higher-margin sectors like defense.
- →PAT margins are projected around 8.5-10%, supporting INR45-50 crores PAT at INR500 crores revenue.
- →Expansion involves volume growth (mainly in fabrication) and realization growth (foundry and machining).
- →Strategic focus on defense, railways, and precision castings is expected to drive long-term sustainable growth.
- →Margins in defense segment expected to be higher than traditional segments, supporting margin improvement.
- →Operational efficiencies, execution focus, and new product lines are key to profitability enhancement.
🏗️ Capital Expenditure Plans
- →Simplex Castings Limited is exploring various expansion options, including acquisitions and organic growth.
- →A small business strategy team is evaluating potential acquisitions, including non-ferrous castings and centrifugal castings lines.
- →The company is considering acquisitions abroad, specifically targeting Europe or Canada.
- →Current capacity supports revenue up to INR300 crores; to reach INR500 crores, capex will be required but not necessarily a new plant.
- →Expansion plans involve increasing manpower and adding machines within existing land and sheds.
- →Focus on Simplex 2.0 strategy aims at long-term sustainability over the next 20-30 years.
- →No immediate aerospace sector capex; plans to enter aerospace are being studied for the next 1-2 years.
- →Emphasis on improving product lines and developing capabilities in defense, railways, and naval segments.
💰 Fundraising & Capital Structure
- →There is no explicit mention of current or future fundraising through debt or equity in the provided transcript.
- →The company has significantly reduced its debt from INR130 crores in 2018 to around INR50 crores currently.
- →They have eased banking pressure by moving to a sole banking arrangement with Kotak Mahindra Bank since January 2025.
- →Future growth plans include capacity expansion primarily through internal accruals and possibly acquisitions.
- →The company is looking at various options such as acquisitions abroad (Europe or Canada) and diversification into non-ferrous and centrifugal castings.
- →No specific fundraising round or plan for new debt/equity issuance was disclosed; Ketan Shah indicated a cautious approach focused on stabilizing and strategizing for long-term sustainability.
📋 Order Book & Pipeline
- →Current order book is around INR60-70 crores (Page 11).
- →Mostly steel segment orders at present, with plans to have order book split 50% steel and 50% power sector by December, including orders from BHEL and L&T (Page 11).
- →Expect INR20 crores to INR40 crores order book from power sector fabrication soon (Page 11).
- →Orders in railways include developmental orders for fabricated bogies - 4 sets for 4 locomotives, expected delivery and trials within current financial year, ramp-up from next financial year (Page 10).
- →Casted bogie segment expected to start booking orders from next quarter after RDSO approvals (Page 10).
- →Defense segment orders ongoing in naval castings and fabrication/machining trials with Gun Carriage Factory, Jabalpur (Page 8).
- →Overall, increasing focus on railways and defense sectors targeting 60% revenue contribution (Page 7).
Key Metrics
Frequently Asked Questions
What were Simplex Castings Ltd Q2 FY26 results?
Simplex Castings expects a strong future growth trajectory, aiming for INR 500 crores revenue run rate from current levels around INR 222 crores (2018 baseline). Simplex Castings is targeting a revenue run rate increase from around INR222 crores (2018) to INR500 crores, implying a 40-50% CAGR.
What is Simplex Castings Ltd share price analysis?
Simplex Castings Ltd currently shows a neutral. The stock trades at a P/E of 18.2 with a market cap of ₹437 Cr. Investors should review the full earnings analysis for detailed insights.
Is Simplex Castings Ltd planning capital expenditure?
Simplex Castings Limited is exploring various expansion options, including acquisitions and organic growth.
Keep Simplex Castings Ltd on your radar — track it to get its next earnings analysis in your feed.
This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.