Alicon Castalloy (531147) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue declined 3% YoY to INR 393 crore, mainly due to subdued export demand and customer-specific disruptions in Europe and India, with a 15% sequential drop.

• Domestic two-wheeler demand remained robust but could not offset export and commercial vehicle segment weakness.

• Profitability and margins were pressured by an adverse product and geographic mix, with higher two-wheeler share and upfront costs for new lines.

• Management expects Q3 to mark the bottom, with sequential improvement anticipated from Q4 and into FY2026, focusing on product diversification and operational optimization.

• Nine-month FY25 total income grew 14% YoY, driven by a strong first half, but Q3 demand weakness impacted momentum.

Financial highlights

• Q3 FY25 total income: INR 393 crore (down 3% YoY, down 15% QoQ); EBITDA: INR 35 crore (9% margin, down 34% YoY); PAT: INR 0.8 crore (down 95% YoY).

• Q3 FY25 gross margin: 45.81% (down 543 bps YoY); EBITDA margin: 8.9% (down 413 bps YoY); PAT margin: 0.2% (down 393 bps YoY).

• 9M FY25 total income: INR 1,298 crore (up 14% YoY); EBITDA: INR 150 crore (up 7% YoY); PAT: INR 37 crore (down 10% YoY).

• CapEx for Q3 was INR 42 crore; nine-month CapEx at INR 140 crore, focused on machinery, automation, and new product development.

• Standalone and consolidated margins and EPS declined sequentially and YoY, with Q3 consolidated net profit at ₹78.11 lakhs.

Outlook and guidance

• Full-year revenue target of INR 1,800 crore may not be met due to export and CV demand softness; updated guidance to be provided after budget finalization.

• Management anticipates recovery in Q4 and expects improved performance in FY2026, with strong order book visibility and focus on diversification.

• Target of INR 2,200 crore topline by FY2026 likely postponed by at least a year due to EV OEM delays.

• Management and auditors confirm compliance with Ind AS and regulatory requirements, with no material misstatements identified.