Nelcast Limited reported higher revenue and a sharp increase in profit for the quarter ended 31 December 2025, supported by improved operating margins, cost optimisation measures, and stronger domestic demand across key end-use segments.
“Q3 has been an encouraging quarter for us, supported by strong domestic demand in the M&HCV and tractor segments,” said Deepak Reddy Ponnavolu, Managing Director and Chief Executive Officer of Nelcast. “The momentum that picked up in late November continued through December, driving healthy volume growth and profitability.”
The total revenue for the third quarter of FY26 stood at INR 3,322 million, compared with INR 2,971 million in the corresponding quarter of the previous year, reflecting year-on-year growth of 11.8 percent. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to INR 359 million from INR 229 million, while profit after tax rose to INR 159 million from INR 60 million.
Ponnavolu added that cost optimisation efforts undertaken after the second-quarter slowdown contributed meaningfully to performance. “Our cost-optimisation efforts after the Q2 slowdown also contributed meaningfully, helping us deliver an EBITDA per kg of INR 15.9, one of our best levels in recent quarters,” he said.
EBITDA margin for the quarter improved to 10.8 percent from 7.7 percent in Q3FY25, an expansion of 308 basis points. EBITDA per kilogram increased to INR 15.9 from INR 11.8 in the year-ago period. Profit margin for the quarter stood at 4.8 percent, compared with 2.0 percent a year earlier.
For the nine months ended 31 December 2025, Nelcast reported revenue of INR 9,712 million, compared with INR 9,344 million in the same period of FY25, a growth of 3.9 percent. EBITDA for the nine-month period rose to INR 896 million from INR 713 million, while profit after tax increased to INR 332 million from INR 237 million. EBITDA margin for the nine months improved to 9.2 percent from 7.6 percent, and profit margin increased to 3.4 percent from 2.5 percent.
The company said exports had not yet fully recovered to the levels seen in the previous year, though early signs of stabilisation were visible as customer schedules normalised. “Exports have not fully recovered to last year’s levels, but we are seeing early signs of stabilisation, with customer schedules gradually normalising,” Ponnavolu said, adding that recent announcements on tariff relief in the United States for engineering and auto-related products had improved customer sentiment and were expected to support export demand over the medium term.
Nelcast also highlighted progress in its high-value new-product pipeline, particularly from the Pedapariya facility, with commercialisation planned from FY27. “A key highlight this quarter is the progress on our high-value new-product pipeline, particularly from the Pedapariya facility, with commercialisation planned from FY27,” Ponnavolu said.
Nelcast Limited, incorporated in 1982, manufactures grey and ductile iron castings for the medium and heavy commercial vehicle and tractor segments. The company has an aggregate installed production capacity of 160,000 tonnes per annum, with manufacturing facilities located at Ponneri in Tamil Nadu and at Gudur and Pedapariya in Andhra Pradesh.