Alicon Castalloy (531147) Q2 25/26 earnings summary

Executive summary

• Leadership transition announced, with Sumit Bhatnagar to become CEO from April 2026, ensuring continuity and strategic focus on operational excellence and customer value.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved, with auditor review reports expressing unmodified opinions.

• The company has expanded its global presence, now operating in 18 countries and serving major automotive OEMs.

• Despite global volatility, the business has stabilized, with three consecutive quarters of sequential revenue growth.

• Ms. Sneha Shukla was appointed as Company Secretary and Compliance Officer, effective November 10, 2025.

Financial highlights

• Q2 FY26 consolidated revenue was ₹42,818.39 lakhs (INR 429 crores), up 2.4% sequentially but down 7.8% year-over-year due to one-time projects and customer-specific issues.

• Gross margin improved to 48.9%, up 300 bps sequentially and 130 bps YoY, driven by product mix and operational efficiency.

• Q2 FY26 EBITDA was ₹55.5 crore (12.9% margin), up 100 bps sequentially and 71 bps YoY.

• Q2 FY26 PAT was ₹13.9 crore (3.2% margin), up 49% QoQ but down 17% YoY.

• H1 FY26 total income was ₹847.6 crore, EBITDA ₹105.3 crore (12.4% margin), and profit before tax ₹23 crore.

Outlook and guidance

• Management expects continued improvement in margins and double-digit topline growth in FY 2027, subject to resolution of U.S. tariff uncertainties.

• Margin improvement is anticipated as new high-value programs ramp up and operational efficiencies deepen.

• Focus remains on cost optimization, operational efficiency, and diversifying the energy mix.

• Domestic market sentiment has improved due to GST rationalization, with OEMs optimistic about sales volumes.

• The company continues to operate in the aluminum alloy castings segment, with results reviewed and approved by the Audit Committee and Board.