Steelcast Q1 FY27 Earnings Call — Analysis (NSE: STEELCAS)
Steelcast guides for 25%+ volume growth in FY27 and commits ₹120 Cr to a greenfield foundry as capacity utilization nears 90%.
The take
Q1FY27 Revenue ₹124.82 Cr ( +17% YoY ) . New guidance — FY27 fy27 revenue/volume growth 25% .
Results
Revenue ₹124.82 Cr +17% YoY; EBITDA margin 28.23% (+9bps YoY); PAT ₹23.71 Cr +19.26% YoY; order book ₹140 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹124.82 Cr | +17% | yoy · Q1FY27 · Q1FY26 |
| EBITDA | ₹35.24 Cr | +17.37% | yoy · Q1FY27 · Q1FY26 |
| EBITDA margin | 28.23% | +9bps | yoy · Q1FY27 · Q1FY26 |
| PAT | ₹23.71 Cr | +19.26% | yoy · Q1FY27 · Q1FY26 |
| PAT margin | 19% | +36bps | yoy · Q1FY27 · Q1FY26 |
| Order book | ₹140 Cr | point_in_time · as of Jul 30, 2026 · as of Jul 30, 2026 |
Guidance
FY27 volume growth expected at 25% (30% possible), EBITDA margin may expand 1-2pp to 28.5-29%, and 20% CAGR targeted over coming years.
What management committed to
- We expect a growth of 25% compared to last financial year [FY26] for FY27. — 25%, FY27
Key themes
Capacity-led growth and margin resilience
Operational commentary
- Greenfield foundry approved: 8,500 tons capacity, ₹120 Cr investment over 2 years, internal target commission 31 Mar FY28; peak revenue potential ~₹300 Cr.
- Renewable energy projects under implementation: 2.4 MW hybrid (wind+solar) and 1.4 MW solar, both expected by 31 Dec 2026.
- Management initially guided 25% volume growth for FY27, later indicated 30% is a distinct possibility given strong customer indications.
- Q1FY27 volume 4,700 tons (exports 60% of tonnage); FY27 total utilization target 63%, reaching 90% on existing capacity by FY29.
- Ground engaging tools (GET) expected to rise from ~1% of sales to 3.5% in FY27 and 6% by FY29 as new parts get approved.
- Over 100 new parts developed in past 18-24 months; new parts likely to contribute ~20% of revenue over next 2-3 years.
- Sectoral diversification: mining now 27% (was 84% 10 years ago), earthmoving 43%, construction 15%; exports to 16 countries, US+Germany share ~70% (was 100%).
- Defense deliberately deprioritized due to better pricing/demand in other industrial sectors; U.S. railroad pursuit paused for same reason.
- Price pass-through mechanism via formula with all customers; effective 1 Jul 2027 upward price correction to fully offset raw material and natural gas cost increases.
- Considering gradual transition from natural gas to electricity for manufacturing to mitigate volatile gas prices.
Analyst Q&A
Q. How does the 63% utilization target square with the 25% volume growth guidance?
I should have said 30% because indications from most of our customers are very strong. I was just trying to be conservative.
Q. How much of the input cost increase will be passed on to customers?
All major raw materials are part of the formula, and we will be able to pass on everything, all increases. The major part comes effective 1st July.
Q. Detail on transitioning manufacturing processes to electricity and potential cost savings?
This is a thought process... maybe over 2-3 years instead of using natural gas we use electricity. At current gas prices there will be saving, but we don't know long-term gas pricing. We can take it offline.
Research and educational content only. Not investment advice.