Earnings call transcript.
ALICON · price
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Alicon Castalloy reported its highest ever Q4 revenue of ₹495 crore, up 16% YoY, driven by strong domestic automotive demand across PV, CV and 2-wheeler segments. FY26 total income came in at ₹1,784 crore (+4% YoY), with EBITDA at ₹203 crore (+3%). However, gross margin compressed 248 bps to 45% in Q4 due to product mix, higher aluminum prices and elevated input costs. PAT for FY26 dropped to ₹24 crore from ₹46 crore in FY25, impacted by ₹8 crore of labour code costs and exceptional items. Management guided for ~8-10% revenue growth in FY27 (excluding aluminium pass-through) with ~20%+ increase in absolute EBITDA, noting near-term margin pressure from commodity inflation and a ~35% minimum wage hike at its North India facility. The company disclosed a ₹7,600 crore executable order book over 6 years (FY25-26 to FY30-31) and plans capex of ₹130-150 crore in FY27, including a new manufacturing plant.
Margin compression and lower profitability despite record quarterly revenue signal near-term challenges; however, a ₹7,600 crore order backlog and 8-10% growth guidance provide visibility. Key risks include commodity inflation, labour cost increases and execution delays on high-value export programs like the JLR Range Rover component.