Electrosteel Castings (500128) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated total income was ₹1,586 crore, down 22.1% YoY; EBITDA fell 47.5% and PAT fell 60.6% amid slower Jal Jeevan Mission funding.

• Pipe and fitting sales volume was 1.63 lakh tonnes, versus 1.89 lakh in Q4 FY25 and 2 lakh in Q1 FY25; the order book stood at ~7 months.

• Management expects demand recovery from H2 as public funding and project activity resume; FY26 volume guidance was reset from 8.5 lakh to ~7.5 lakh tonnes.

• Unaudited results received a limited review with qualified conclusions concerning unresolved coal-block compensation and ESL-related matters.

Financial highlights

• Consolidated Q1 FY26 total income was ₹1,586 crore, EBITDA ₹198 crore at a 12.5% margin, and PAT ₹89 crore at a 5.6% margin.

• Consolidated gross profit was ₹827 crore, down 18.9% YoY; gross margin rose 207 bps to 52.2%. EBIT was ₹158 crore.

• Consolidated revenue from operations was ₹155,769.29 lakh versus ₹201,190.32 lakh YoY; PBT was ₹12,120.80 lakh versus ₹30,454.43 lakh.

• Standalone total income was ₹1,426 crore, EBITDA ₹186 crore at a 13.1% margin, and PAT ₹86 crore; standalone revenue was ₹140,210.68 lakh.

• Consolidated diluted EPS was ₹1.44 versus ₹3.65 in Q1 FY25; standalone EPS was ₹1.39 versus ₹3.43.

Outlook and guidance

• Q2 is expected to remain subdued, with pipe volume of 1.5–1.55 lakh tonnes; volumes are expected to improve from Q3, with demand recovery from H2.

• FY26 pipe volume outlook was reset from 8.5 lakh tonnes to ~7.5 lakh tonnes, implying flattish performance versus FY25.

• Management expects FY26 EBITDA margin of 15%–18% and better returns in H2.

• T.I.S. revenue target is at least 15% CAGR over three years; localization and know-how transfer could lift EBITDA margin to a potential 18%–20%.

• Finished-goods capacity was reported at 9 lakh TPA; capacity additions have been made at regular intervals.