Nelcast Limited Earnings Summary — Q1 FY2027
Nelcast Reports Q1 Revenue Growth Amidst Significant Profit Contraction
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 7.4% sequentially in Q1 FY2027.
- Revenue of ₹341 Cr is 2.8% higher year-on-year.
- Revenue has compounded at 6.6% annualised over the last 10 quarters.
- Net profit of ₹5 Cr is 58.9% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 0.6% annualised across the period.
- Operating margin stands at 4.6% in Q1 FY2027.
- Operating margin compressed by 389 bps year-on-year.
- Over the last two years operating margin has contracted by 211 bps.
- PBT margin is 2.0%.
- Expenses grew 7.1% against revenue growth of 2.8%.
- Operating profit of ₹16 Cr is 44.2% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 41/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 341 | 368 | 330 | 299 | 332 | 330 | 291 | 330 | 300 | 295 |
| Expenses | Stable | 325 | 336 | 296 | 282 | 304 | 300 | 274 | 309 | 280 | 280 |
| Operating Profit | Volatile | 16 | 32 | 33 | 17 | 28 | 30 | 17 | 21 | 20 | 16 |
| Operating Margin | Improving | 4.6% | 8.7% | 10.1% | 5.7% | 8.5% | 9.0% | 5.9% | 6.5% | 6.7% | 5.3% |
| Other Income | Improving | 4 | 3 | 3 | 4 | 4 | 5 | 6 | 6 | 4 | 4 |
| Interest | Stable | 7 | 7 | 8 | 8 | 9 | 9 | 9 | 9 | 8 | 8 |
| Depreciation | Stable | 7 | 7 | 7 | 7 | 6 | 7 | 6 | 6 | 6 | 6 |
| Profit Before Tax | Volatile | 7 | 21 | 21 | 6 | 17 | 18 | 8 | 13 | 10 | 6 |
| Tax | Volatile | 2 | 5 | 5 | 2 | 4 | 5 | 2 | 3 | 2 | 1 |
| Net Profit | Volatile | 5 | 15 | 16 | 5 | 13 | 14 | 6 | 10 | 8 | 5 |
| Net Margin | Volatile | 1.5% | 4.2% | 4.8% | 1.6% | 3.8% | 4.1% | 2.0% | 3.0% | 2.6% | 1.7% |
Key Takeaways
- Revenue from operations grew 2.8% year-on-year to ₹341.05 Cr, showing resilience in top-line demand.
- Net profit witnessed a sharp decline of 58.9% YoY to ₹5.14 Cr, largely due to higher material and operational costs.
- Standalone and Consolidated results remain identical as the subsidiary, NC Energy Limited, has not yet commenced commercial operations.
- Total expenses rose to ₹338.70 Cr compared to ₹319.40 Cr in the same quarter last year, impacting margins.
- Cost of materials consumed as a percentage of revenue increased significantly to 45.17% from 42.48% YoY.
- Finance costs showed a positive trend, decreasing to ₹6.57 Cr from ₹9.32 Cr in the year-ago period, reflecting debt management efforts.
Management Guidance
Management maintains a focus on value-added component manufacturing and 'EBITDA per Kg' improvements to combat cyclical domestic demand and raw material volatility.
Sentiment Shift
Deteriorating
While revenue remains stable, the extreme compression in net margins and the sequential profit drop of over 66% indicate rising cost pressures or pricing headwinds.
Outlook
The company remains highly dependent on the cyclical recovery of the M&HCV and tractor segments, with an increasing strategic pivot toward exports to mitigate domestic infrastructure-linked cycles.
From the Annual Report (Key Quotes)
“The operations of the Company relate to only one primary segment viz., Iron Castings.”
“The Company's subsidiary has not commenced its commercial operations yet, hence, the consolidated financial results of the Company are the same as the standalone financial results.”
Official Quarterly Documents
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This summary is AI-generated from Nelcast Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.