Electrosteel Castings Limited has informed the Exchange about Transcript
ELECTCAST · price
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Electrosteel Castings reported a challenging FY26 with sales volume declining 25% YoY to 5.84 lakh tons due to delayed Jal Jeevan Mission funds. Q4 standalone revenue fell to INR 1,228 crores with EBITDA margin at 4.7%, resulting in a Q4 loss of INR 10.7 crores. The company reduced its dividend from 140% to 90%. However, exports grew 7% YoY and now contribute about 23% of revenue. The government approved Jal Jeevan Mission 2.0 with INR 8.69 lakh crores outlay till December 2028, which management sees as a major positive. Management guided for FY27 dispatch of ~7 lakh tons and 13-14% EBITDA margins, expecting gradual recovery from Q2 FY27 onwards. They are diversifying into valves and industrial paints (INR 200-250 crores capex planned over 2 years). Gross debt was reduced by INR 598 crores to INR 1,202 crores.
The stock faces near-term pressure from weak Q4 results and volume decline, but JJM 2.0 approval and expected demand recovery in H2 FY27 provide a positive medium-term outlook. Promoters have been buying shares from the open market, signaling confidence. Cost pressures from rising freight, coal, and energy costs remain a concern.