Alicon Castalloy (531147) Q3 24/25 earnings summary

Executive summary

• Q3 FY2025 revenue declined to INR 393 crore (₹39,210.04 lakhs), down from INR 406 crore in Q3 FY2024 and sharply lower sequentially, mainly due to subdued export demand, customer disruptions, and adverse product/geographic mix.

• Net profit for Q3 FY2025 was INR 7.8 million (₹78.11 lakhs), a significant drop from INR 170 million (₹1,674.17 lakhs) last year, reflecting margin pressure and customer-specific challenges.

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

• Management expects Q3 to mark the bottom, with sequential improvement anticipated from Q4 FY2025 and a positive long-term outlook supported by a strong order book and new business wins.

• Management remains optimistic about long-term growth, focusing on product diversification and operational optimization.

Financial highlights

• Q3 FY2025 total income was INR 393 crore (₹39,210.04 lakhs), down 3% YoY and 15% QoQ; 9M FY2025 total income was INR 1,298.2 crore, up 14% YoY.

• Q3 FY2025 EBITDA was INR 350 million (₹35.1 crore, 9% margin), down from INR 530 million (13%) in Q3 FY2024.

• Q3 FY2025 PAT was INR 7.8 million (₹0.8 crore), down 95% YoY; PAT margin at 0.2% vs 4.1% YoY.

• For 9M FY2025, revenue was INR 12,980 million, up 14% YoY; EBITDA was INR 1,500 million, up 7% YoY; PAT was INR 370 million, down from INR 410 million YoY.

• CapEx for Q3 was INR 420 million (₹42 crore); 9M FY2025 CapEx was INR 1,400 million (₹140 crore), focused on machinery and new product development.

Outlook and guidance

• FY2025 revenue guidance of INR 1,800 crore may not be met due to export and CV demand softness; updated guidance to be provided after budget finalization.

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

• Management expects sequential improvement in Q4 FY2025 and further growth in FY2026, with recovery in export and domestic markets.

• Strategic focus remains on product diversification, expanding market reach, and strengthening leadership.

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