Current/ Expected Orderbook/ Pending Orders?

Current quarterly order book is above ₹100 crores, providing healthy revenue visibility. Steel plant contributes nearly 50% of the order book. Around 30% of orders come from the power industry, including fabrication for BHEL and Gaja Engineering. Remaining 20% comprises orders from gearbox manufacturers, pump manufacturers, and machine tool industry. Mazgaon Dock orders (5-6%) relate to naval shipbuilding (Indian Coast Guard and Navy). Trial orders for fabricated railway bogies are underway, with casted bogie orders expected post-final RDSO approval. First steel plant capex order (

Any current/future new fundraising through debt or equity?

Simplex Castings Limited has recently done a fundraising. Out of the total fundraiser, approximately ₹25 crores is planned for capex. Another ₹25 crores is targeted towards working capital needs. The company has a cash credit (CC) limit from Kotak of ₹34 crores. The management expects better working capital management and does not anticipate past liquidity issues recurring due to improved sector conditions and support. Asset turn from the ₹25 crores capex is expected to be at least 3-4x. No announcements on any additional future fundraising through debt or equity were mentioned beyond this.

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

Capex plan includes ₹25 crores targeted from recent fundraise, with an expected asset turnover of 3-4x. Capacity addition underway for fabricated bogies, expected to take 6-8 months to become operational. Casted bogies capacity already set up and operational. Considering setting up a fabrication unit near Arcelor Mittal Nippon Steel's upcoming Vishakapatnam steel plant, potentially with buyback arrangements for 4-5 years. Focused on upgrading product mix and moving up the value chain through investment in CNC machine tools, assembly shops, and fabrication capabilities. May explore al

Future growth expectations in sales/revenue/volumes?

Simplex Castings targets a 40-50% CAGR in revenue over the next 2-3 years, driven primarily by growth in railways and power sectors. Railway sector revenue is expected to grow from near zero to about 20-25% in FY 26-27. Power sector contribution is projected to increase from 10-15% to around 20-30% in the same period. The company aims to shift from jobbing to at least 50% repetitive product-line revenue, especially through railway casted and fabricated bogies. New capacity for fabricated bogies is expected to come online in 6-8 months. Steel sector will continue to contribute 40-50%

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

The company targets a 40-50% CAGR over the next 2-3 years, driven primarily by growth in railways, steel, and power sectors. EBITDA margins are expected to improve by at least a couple of percentage points compared to the current financial year. The shift towards more repetitive and higher-margin products like railway casted and fabricated bogies should enhance profitability. Capex plans of ₹25 crores are expected to generate asset turns of 3-4x, boosting revenue and margins. The company expects sustainable EBITDA margins around 10%, with future quarters anticipated to see margin normalization

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Simplex Castings LtdQ4 FY27Industrial Products

Simplex Castings Ltd Q4 FY27 Earnings Call Analysis

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

Price: ₹542P/E: 19.5Market Cap: ₹363 CrSector: Industrial Products

Management growth scorecard

Revenue

Category 1

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Simplex Castings targets a 40-50% CAGR in revenue over the next 2-3 years, driven primarily by growth in railways and power sectors.
→Railway sector revenue is expected to grow from near zero to about 20-25% in FY 26-27.
→Power sector contribution is projected to increase from 10-15% to around 20-30% in the same period.
→The company aims to shift from jobbing to at least 50% repetitive product-line revenue, especially through railway casted and fabricated bogies.
→New capacity for fabricated bogies is expected to come online in 6-8 months.
→Steel sector will continue to contribute 40-50% of orders, with new capex orders starting to flow in FY 26-27.
→Defense and shipbuilding will grow at around 10-15%, contributing high margins but smaller revenue share.
→The order book is substantial, with no major order shortages expected, supporting sustained growth.

Margin guidance

Category 2

→The company targets a 40-50% CAGR over the next 2-3 years, driven primarily by growth in railways, steel, and power sectors.
→EBITDA margins are expected to improve by at least a couple of percentage points compared to the current financial year.
→The shift towards more repetitive and higher-margin products like railway casted and fabricated bogies should enhance profitability.
→Capex plans of ₹25 crores are expected to generate asset turns of 3-4x, boosting revenue and margins.
→The company expects sustainable EBITDA margins around 10%, with future quarters anticipated to see margin normalization and improvement.
→Working capital cycles are planned to reduce to 90 days or less, improving cash flow and supporting growth.
→Long-term plans include focusing on railway and power sectors, with an increasing share of recurring business stabilizing earnings.
→The company expects quarterly revenue and profits to gain momentum starting FY26-27 with new orders and capacity expansion.

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Fundraise plans

Yes

→Simplex Castings Limited has recently done a fundraising.
→Out of the total fundraiser, approximately ₹25 crores is planned for capex.
→Another ₹25 crores is targeted towards working capital needs.
→The company has a cash credit (CC) limit from Kotak of ₹34 crores.
→The management expects better working capital management and does not anticipate past liquidity issues recurring due to improved sector conditions and support.
→Asset turn from the ₹25 crores capex is expected to be at least 3-4x.
→No announcements on any additional future fundraising through debt or equity were mentioned beyond this.

Order book

Yes

→Current quarterly order book is above ₹100 crores, providing healthy revenue visibility.
→Steel plant contributes nearly 50% of the order book.
→Around 30% of orders come from the power industry, including fabrication for BHEL and Gaja Engineering.
→Remaining 20% comprises orders from gearbox manufacturers, pump manufacturers, and machine tool industry.
→Mazgaon Dock orders (5-6%) relate to naval shipbuilding (Indian Coast Guard and Navy).
→Trial orders for fabricated railway bogies are underway, with casted bogie orders expected post-final RDSO approval.
→First steel plant capex order (~₹13 crores) received recently from a PSU via ThyssenKrupp; more orders in pipeline.
→Order book includes high-value and trial orders from marquee customers like BHEL, Mazgaon Dock, Gaza Engineering.
→The company anticipates the resumed freight wagon bogie business adding ₹40-50 crores to topline from FY26-27.

Capex plans

Yes

→Capex plan includes ₹25 crores targeted from recent fundraise, with an expected asset turnover of 3-4x.
→Capacity addition underway for fabricated bogies, expected to take 6-8 months to become operational.
→Casted bogies capacity already set up and operational.
→Considering setting up a fabrication unit near Arcelor Mittal Nippon Steel's upcoming Vishakapatnam steel plant, potentially with buyback arrangements for 4-5 years.
→Focused on upgrading product mix and moving up the value chain through investment in CNC machine tools, assembly shops, and fabrication capabilities.
→May explore aluminum foundry and high-pressure die casting opportunities via potential collaborations (consultations with German consultants ongoing).
→Capital expenditure primarily aimed at expanding railway and power sector products; defensive and shipbuilding sectors to receive smaller focus.

How does Simplex Castings Ltd rank vs peers in Industrial Products?

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