Electrosteel Castings (500128) Q2 24/25 earnings summary

Executive summary

• Q2 results weakened amid the extended Srikalahasthi blast furnace shutdown and slower-than-expected production stabilization; H1 consolidated income, EBITDA and PAT increased YoY.

• Capacity expansion to 10 lakh TPA by FY26 remains on track, with water-infrastructure spending supporting demand; the auditors’ review conclusion was qualified for possible effects of unresolved legal matters.

Financial highlights

• Q2 consolidated total income was ₹1,849 crore, down 4.6% YoY; EBITDA was ₹289 crore and PAT ₹155 crore, down 9.3% and 11.1%, respectively.

• Q2 consolidated EBITDA margin was 15.6% (-82 bps YoY), PAT margin 8.4% (-62 bps) and gross margin 50.7% (+131 bps).

• H1 consolidated total income rose 6.5% YoY to ₹3,885 crore; EBITDA increased 31.8% to ₹666 crore and PAT rose 52.8% to ₹381 crore.

• H1 consolidated EBITDA margin expanded 329 bps to 17.2%; PAT margin expanded 297 bps to 9.8%.

• Standalone H1 income was ₹3,564 crore (+4.3% YoY), EBITDA ₹623 crore (+21%) and PAT ₹364 crore (+37.2%); EBITDA and PAT margins were 17.5% and 10.2%.

Outlook and guidance

• FY25 volume outlook was lowered toward the bottom of the 8–8.5 lakh-tonne range due to slower furnace stabilization and a one-month delay in equipment supply from China.

• Capacity expansion to 10 lakh TPA in FY26 remains on track; order-book visibility was 10 months.

• Management expects H2 EBITDA margin of 16%–18%, described as sustainable for the medium term; booked coking coal inventory is expected to benefit Q3.

• JJM order flow is expected to pick up by quarter-end or early next quarter; management expects stable margin percentages, with per-ton outcomes dependent on selling prices and input costs.