Nelcast Q1 FY27 Results (NSE: NELCAST)
Signal: Margin pressure
The read
Q1FY27 marks a sharp reversal from Q4FY26's margin expansion; EBITDA margin fell to 5.9% (lowest in recent quarters) as raw material cost inflation and higher other expenses overwhelmed modest revenue growth. Finance cost reduction was the only mitigating factor. The trajectory suggests limited pricing power in a competitive casting market.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹341.05 Cr | 2.77% | -7.37% |
| EBIT | ₹13.25 Cr | -48.9% | |
| Net profit | ₹5.14 Cr | -58.9% | |
| EPS | ₹0.59 | -59.0% | |
| EBIT margin | 5.89% |
P&L walk
Revenue grew modestly but EBITDA margin collapsed on raw material cost pressure and higher other expenses, dragging PAT down 59% YoY.
Segments
Company operates single segment - Iron Castings; subsidiary NC Energy pre-revenue, consolidated same as standalone.
Key positives
- Finance cost reduced 29.6% YoY to ₹656.54 Lakh, benefiting from lower debt or better rates.
- Power & fuel cost as % of revenue improved to 9.4% from 10.9% YoY, indicating energy efficiency or lower tariffs.
Key concerns
- EBITDA margin contracted 386 bps YoY to 5.9%, the lowest in recent quarters.
- Raw material cost (RM + inventory change) as % of revenue jumped to 47.4% from 44.1% YoY, indicating input cost pressure.
- Other expenses grew 8.5% YoY to ₹10,765.74 Lakh, outpacing revenue growth.
- Net profit down 58.9% YoY, a sharp reversal from prior trajectory.
Research and educational content only. Not investment advice.