Alicon Castalloy (531147) Q3 25/26 earnings summary

Executive summary

• Domestic automotive market drove double-digit growth in Q3 FY26, supported by GST rationalization and robust OEM demand, while global operations faced headwinds from tariff uncertainty, supply chain disruptions, and a UK OEM cyberattack.

• Management remains optimistic for Q4 and the next fiscal year, focusing on cost optimization, strategic initiatives, and value-added growth.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY26 were approved, with auditor review reports issued without qualification.

• Employee Stock Option Scheme 2026 was approved, granting 300,000 options to eligible employees and subsidiaries.

Financial highlights

• Q3 FY26 consolidated revenue was ₹43,008.61 lakhs (INR 430.8 crore), up 10% YoY; standalone revenue was ₹40,456.75 lakhs.

• Q3 FY26 EBITDA rose 34% YoY to ₹4,720 lakhs (INR 47.2 crore), with margin at 10.9%.

• Q3 FY26 PAT was ₹3.3 crore, up 322% YoY, but down sequentially due to exceptional items and higher costs.

• 9M FY26 consolidated revenue was ₹1,278 crore, EBITDA at ₹153 crore (margin 11.9%), and PAT at ₹11 crore.

• Exceptional items of ₹500.09 lakhs in Q3 FY26 were recorded due to labor law changes.

Outlook and guidance

• Domestic business expected to see 10-12% growth in Q4, with continued strong momentum and policy tailwinds.

• Full-year CapEx guidance of INR 125-130 crore, focused on automation, capacity, and R&D.

• EBITDA margin guidance for Q4 at 12.5-13%, with full-year margin expected at 12-12.5%; medium-term target to reach 13-14%.

• Management remains focused on de-risking, cost optimization, and carbon-neutral technology opportunities.