Electrosteel Castings (500128) Q2 25/26 earnings summary

Executive summary

• Weak Jal Jeevan Mission funding and delayed government spending reduced domestic demand, volumes and profitability; a prior-period tax-provision reversal supported reported Q2 EBITDA.

• Management described the slowdown as temporary and expects demand to recover from calendar 2026; water infrastructure programs and the T.I.S. acquisition broaden growth prospects.

Financial highlights

• Consolidated Q2 FY26 total income was Rs. 149,094.86 lakh, EBITDA INR 188 crore and PAT Rs. 7,828.55 lakh; total income, EBITDA and PAT declined YoY.

• Consolidated Q2 EBITDA excluding the INR 64 crore provision write-back was INR 124 crore; Q2 EBITDA margin was 12.6% and PAT margin was 5.3%.

• H1 FY26 consolidated total income was INR 3,077 crore, EBITDA INR 386 crore and PAT INR 167 crore; all declined YoY.

• Standalone Q2 total income was Rs. 119,232.20 lakh and PAT Rs. 7,599.35 lakh; EBITDA margin was 13.5%.

• DI fittings and CI pipe sales volume was 1.39 lakh tonnes in Q2, down 28% YoY; H1 volume was 3.02 lakh tonnes, down 25%, while export volume rose 8%.

Outlook and guidance

• FY26 volume guidance was 5.5–6 lakh tonnes; FY27 volume was projected at 8–8.5 lakh tonnes as funding and demand recover.

• Management expects production and per-tonne margins to improve from Q1 FY27, with a stronger pickup in Q2; double-digit margin per tonne was described as achievable.

• Quarterly net profit was expected to approach INR 150 crore by Q2 FY27, subject to the anticipated recovery.

• T.I.S. valve sales in India, the Middle East and Southeast Asia are expected from FY27; its FY26 revenue was expected to grow 10% over its ~INR 350 crore prior-year base.