Simplex Castings Limited-Investor Presentation Q2 FY 2025-26
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Simplex Castings shared its Q2FY26 investor presentation highlighting strong revenue growth of 88.60% YoY to ₹55.41 Cr, with EBITDA up 22.46% to ₹9.65 Cr and PAT rising 53.29% to ₹5.58 Cr. Despite top-line growth, EBITDA margins compressed sharply from 26.82% to 17.42% YoY, while PAT margins fell from 12.39% to 10.07%. The company announced a quarterly order book of ₹60-70 Cr, including major structural orders from BHEL Trichy (1,365 MT and 826 MT), L&T approval for heavy fabrication, and a developmental order from CLW for railway bogies. Management laid out a 'Simplex 2.0' growth strategy targeting 40-50% revenue CAGR over the next 3 years, reaching ₹500 Cr by FY28E, while sustaining a 10% PAT margin. The company is also evaluating inorganic acquisitions in allied casting and engineering segments and diversifying into defence, railways, oil & gas, and centrifugally cast rolls.
The strong revenue growth and new order wins in railways and defence are positive for future earnings visibility, but the significant YoY margin compression despite higher scale is a concern for shareholders. The aggressive 40-50% CAGR target and acquisition plans signal management confidence but execution risk remains high for a small-cap company.