Steelcast Ltd Q1 FY27 Earnings Analysis

- Steelcast targets a **20%+ year-on-year volume growth** for FY27 and the next three years through FY29. - The company aspires to **more than INR 100 crores PAT in FY27**, indicating strong profit growth alongside sales. - They aim to **double sales by FY29** compared to FY26, with current capacity enabling theoretical revenue of around INR 860 crores by FY29. - Growth drivers include expansion in sectors such as **mining, earthmoving, construction, locomotives, railroad, and ground engaging tools**. - Export revenues have been strong, contributing over 60% of total revenue, with ongoing **supply chain diversification and increased global OEM engagement**. - Capacity expansion decisions will be finalized by **July 2026** to support anticipated demand ramp-up. - New part developments (over 50 parts) are expected to convert to serial supplies, supporting sustained growth.

- Steelcast aims for over 20% volume and revenue growth in FY27 and the next three years. - Targeting to become a Rs. 100 crore+ PAT company in FY27, with PAT aspirations potentially exceeding Rs. 100 crore (could be Rs. 101 to Rs. 115 crore or more). - Sustainable EBITDA margins expected around 25-26%, though temporary highs near 30% are possible. - Long-term growth goal to double sales by FY29 compared to FY26. - Capacity expansion decision expected by July 2026 to support growth; current capacity utilization around 63-64%, aiming to avoid waiting for 75% utilization to expand. - Incremental profitability improvements expected from new part developments, diversification across sectors, and cost-saving initiatives (e.g., 2.4 MW hybrid power project). - Strong export growth (over 60% of revenues) and diversification globally support sustained profit growth. - Management committed to maintaining healthy margins and managing cost pressures through pricing adjustments.

- Steelcast plans capacity expansion and is in advanced stages of finalizing the capex plan. - Exact details and quantum of capacity increase will be ready by end of July 2026. - Current capacity utilization is around 63-64%; subsequent utilization increase drives earlier capex decision before hitting 75%. - The company aims to decide on the capacity expansion by July 2026, earlier than the initially planned December 2026 timeline. - No specific capex amount disclosed yet. - The decision is driven by strong demand indications and approval of new parts converting to serial supplies. - The 2.4 MW hybrid power project is under commissioning by June 2026, expected to generate annual savings of ~₹3.6 crore and improve sustainability. (Information summarized from pages 6, 7, 8, and 11)

- There is no specific mention of any current or planned fundraising through debt or equity in the transcript. - The company maintains a debt-free balance sheet with healthy cash reserves of around ₹114 crores, indicating strong financial prudence. - Capacity expansion decisions and related capex are being evaluated and expected to be finalized by July 2026, but no mention of funding through external financing. - The management emphasizes maintaining financial discipline and flexibility to navigate uncertainties without indicating an immediate need for fundraising. - No direct question or response in the call addresses plans for new debt or equity issuance.

- The typical order cycle for Steelcast Limited is around 110 to 120 days. - As of April 1, 2026 (start of FY27), the order book stands at approximately INR 130–135 crores. - This order book represents the current confirmed orders expected to be executed in the near term.