Alicon Castalloy (531147) Q3 25/26 earnings summary

Executive summary

• Domestic automotive market saw strong double-digit growth in Q3 FY26, driven by GST rate rationalization, improved customer sentiment, and policy reforms, while global operations were muted due to tariff-related uncertainties, supply chain disruptions, and seasonally softer demand, especially in North America and the UK.

• Revenue for Q3 FY26 reached INR 430 crore (₹43,008.61 lakhs consolidated), up 10% year-on-year, marking the fourth consecutive quarter of sequential growth.

• New order wins in both domestic and global markets, including high-value parts for commercial and passenger vehicles, reinforce strategic positioning.

• ESG initiatives recognized with EcoVadis certification, placing the company among the top 35 globally assessed firms.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved, with auditor review reports issued without qualification.

Financial highlights

• Q3 FY26 revenue: INR 430 crore (₹43,008.61 lakhs consolidated, ₹40,456.75 lakhs standalone), up 10% year-on-year; nine-month revenue: INR 1,278 crore.

• Q3 FY26 EBITDA: INR 47.2 crore, up 34% year-on-year; EBITDA margin at 10.9%.

• Q3 FY26 PAT increased to INR 3.3 crore (₹229.73 lakhs consolidated), up from INR 0.8 crore in Q3 FY25, aided by a low base and improved profitability.

• Exceptional items of INR 5 crore (₹500.09 lakhs) were recorded in Q3 FY26 due to changes in labor laws affecting gratuity and compensated absences.

• CapEx for Q3 FY26: INR 28 crore; nine-month CapEx: INR 92 crore; full-year CapEx guidance: INR 125–130 crore.

Outlook and guidance

• Domestic revenue expected to improve by 10–12% in Q4 FY26, with EBITDA margin guidance for Q4 at 12.5–13% and full-year margin expected at 12–12.5%.

• Order book stands at approximately INR 9,100 crore, with exit revenue projected at INR 3,500 crore by FY29.

• Management expects further improvement in Q4 and into the next fiscal year, supported by policy tailwinds, operational discipline, and ongoing regulatory monitoring.

• Anticipates further order inflow as trade agreements with the US and EU progress, supporting medium-term growth.