Any current/future new fundraising through debt or equity?

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.

Any current/future capex/capital investment/strategic investment?

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% ut

Future growth expectations in sales/revenue/volumes?

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 rev

Future growth expectations in earnings/operating earnings/profits/EPS?

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

Current/ Expected Orderbook/ Pending Orders?

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 t

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Alicon Castalloy LtdQ1 FY25Auto Components

Alicon Castalloy Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹651P/E: 27.6Market Cap: ₹1.1K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

Order

Capex

Yes

1 of 5 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→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.

Margin guidance

Category 2

→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.

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Fundraise plans

→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.

Order book

→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.

Capex plans

Yes

→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.

How does Alicon Castalloy Ltd rank vs peers in Auto Components?

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