Nelcast Limited, a manufacturer of ductile and grey iron castings for the automotive and industrial sectors, is prioritising high-value product development and capacity utilisation at its Pedapariya facility in Andhra Pradesh rather than new capacity additions. The company is focusing on manufacturing complex single-piece castings and electric axle (e-axle) components for export markets, with commercial production expected to begin in the first half of the financial year 2026–27.
According to comments made by Managing Director and Chief Executive Officer Deepak Reddy Ponnavolu during the company’s second-quarter earnings call for the financial year 2025–26 on 31 October 2025, Nelcast is developing “high-value complex products that require advanced capabilities and face minimal competition.” These new products are undergoing customer trials and are expected to contribute about 10 to 15 percent of total sales once fully ramped up.
The Pedapariya unit is central to this product diversification strategy. Ponnavolu said that “a lot of these bigger products that we are talking about are being developed at Pedapariya,” adding that the company aims to double utilisation at the plant over the next 18 to 24 months as these products enter production. Nelcast’s overall capacity utilisation stood at around 52 percent in the second quarter and is targeted to rise to about 60 percent by the end of the financial year and 80 percent in the medium term.
The company has no immediate capital expenditure plans for additional capacity. “We have plenty of capacity. Our focus now is on utilising the capacity that we have,” Ponnavolu stated.
Nelcast’s product expansion includes development of e-axles for electric commercial vehicles, which offer higher casting content compared to traditional axles. The company’s value addition per vehicle in this segment is expected to increase from about USD 350 to nearly USD 900 as e-axles become mainstream. Ponnavolu noted that Nelcast is among the few companies globally capable of manufacturing completely cast housings for both e-axles and conventional axles.
Nelcast is also expanding its presence in Europe, where it expects export growth to complement its United States business. The company aims to raise exports to around 45 to 50 percent of total revenue over the next three years, supported by diversification into new markets and product categories.
For the first half of the financial year 2025–26, Nelcast reported total revenue of INR 6.39 billion (approximately USD 76.6 million) and profit after tax of INR 173 million (about USD 2.1 million). Capacity utilisation improvements and new product introductions are expected to enhance operational efficiency and margins from the financial year 2026–27 onward.
Nelcast Limited, headquartered in Chennai, manufactures castings used in medium and heavy commercial vehicles, tractors, railways and industrial machinery, and operates production facilities in Gudur, Ponneri and Pedapariya.