Electrosteel Castings (500128) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue and PAT declined YoY; EBITDA and PAT improved QoQ as cost optimization, inventory control and efficiency actions supported profitability amid weak demand.

• H2FY27 recovery is expected as water-infrastructure funding and project execution improve; diversification into valves, industrial coatings and adjacent businesses aims to broaden growth.

Financial highlights

• Consolidated revenue from operations was ₹142,556.96 lakh versus ₹153,021.17 lakh YoY; total income was ₹146,481.19 lakh versus ₹155,769.29 lakh.

• Consolidated EBITDA was ₹139 crore, down 29.8% YoY, at a 9.5% margin; PAT was ₹4,836.67 lakh versus ₹8,907.83 lakh.

• Standalone revenue from operations was ₹1,091 crore, down 22.2% YoY; EBITDA was ₹71 crore and PAT ₹6 crore, with a 6.3% EBITDA margin.

• DI and CI pipe and fittings volume was 1.20 lakh tonnes, down 27% YoY; consolidated net debt was ₹876 crore at June 30, 2026.

• Consolidated diluted EPS was ₹0.78 versus ₹1.44 in Q1FY26; Q1FY27 had no exceptional item, versus a ₹38 crore exceptional loss in Q1FY26.

Outlook and guidance

• FY27 DI and CI pipe volume expectation was reduced from 650,000–700,000 tonnes to ~575,000 tonnes; H1 is expected to be slower, with recovery in H2.

• Q2 EBITDA margin is expected to be at least in line with Q1; Q3 and Q4 margins are expected to reach 12%–13%.

• Exports are targeted at 22%–25% of FY27 volumes; 60%–70% of exports are aimed at Western markets, with the balance across the Middle East, Africa and Southeast Asia.

• FY30–FY31 targets include ₹7,000–8,000 crore revenue and a 13.5% EBITDA margin, assuming DI pipe demand normalizes; valve revenue is targeted to double in four years.