Alicon Castalloy Ltd

- For FY '26, Alicon Castalloy plans a capital expenditure of around Rs. 170 crore. - The company intends to fund most of this CAPEX through internal accruals. - A small increase in debt is expected, but no major debt raising is planned. - There is no mention of any planned equity fundraising in the current earnings call. - Overall, fundraising will primarily rely on internal resources with minor additional debt if needed.

- FY25 CAPEX was approximately Rs. 165-170 crore, the largest in two decades, focused on machinery upgrades and new product development for ICE and EV platforms. - FY26 CAPEX guidance is around Rs. 170 crore, continuing capability building and supporting business expansion. - Investments are for critical, customer-specific projects involving bigger and advanced machines, particularly for strategic customers like JLR, Daimler, and PSA. - Investments are aimed at developing large volume, high-value products such as the eAxle for JLR. - CAPEX supports ramp-up and capacity expansion, targeting around 80% utilization in FY26 and FY27. - Some CAPEX is directed towards automations and maintenance improvements. - Funding for CAPEX will be primarily through internal accruals with a small debt increase expected. - Strategic investments are expected to unlock future revenue growth and entry into premium segments in Europe and India.

- FY ’26 revenue guidance revised to Rs. 1,900 - 1,950 crore, representing 12-14% growth, down from earlier Rs. 2,200 crore guidance due to global headwinds and export issues. - Growth driven by ramp-up in European and Japanese OEM orders, with top four customers (two Japanese and two European OEMs) expected to drive volume and revenue growth. - Sales growth from new order wins expected to contribute around 5% in FY ’26; remaining growth to come from natural expansion of existing platforms. - Capacity utilization anticipated to reach around 80% next year due to recent CAPEX investments. - EV segment revenue share increased from 12% (FY ’24) to 19% (FY ’25) and expected to continue growing. - Export markets (Europe and USA) currently showing sales decline but recovery and volume growth expected once tariff uncertainties are resolved. - Domestic market growth expected to be decent, especially in passenger vehicle segment with Japanese OEMs.

- FY '26 revenue guidance is Rs. 1,900 crore to Rs. 1,950 crore, implying 12%-14% growth. - EBITDA margins expected around 13% for FY '26, improving from FY '25 levels. - Margin expansion driven by better sales mix, increased automation, and scale-up of advanced production lines. - Cautious optimism due to volatility from tariff uncertainties and global macroeconomic factors. - New order wins, especially from Japanese and European OEMs, expected to drive growth. - Working capital improvements and targeted CAPEX (~Rs.170 crore) to support capacity and margin enhancement. - FY '26 expected to continue revenue and margin improvement momentum seen in Q4 FY '25. - No specific EPS guidance disclosed, but improved PAT expected in line with margin and revenue growth.

- Current order book stands around Rs. 9,000 crore, to be executed up to FY 2028-29. - Order book includes significant contributions from passenger vehicle (50%) and commercial vehicle (32%), totaling approx. 82% from four-wheelers. - New orders received in FY '24-'25 will fetch revenue of around Rs. 1,600 crore over the next 5 years. - New order wins are consistent and healthy, though some EV orders were reduced due to customer guidelines. - Strategic customers include two Japanese OEMs and two European OEMs, who are key growth drivers. - Addition of new products and ramp-up of existing orders expected to support growth in FY '26. - The company maintains a balanced customer portfolio, with no single customer contributing more than 15% of revenue, mitigating risk.