Electrosteel Castings (500128) Q4 25/26 earnings summary

Executive summary

• FY26 domestic water-project delays reduced volumes and profitability; export pipe volume grew 7%, partly offsetting domestic weakness.

• Consolidated FY26 revenue was ₹5,918 crore and net profit ₹168.3 crore; total income was ₹6,133 crore.

• Qualified audit opinions cited unresolved coal-block compensation and ESL-related pledge and land disputes with unascertainable impacts.

• Growth positioning includes 9 lakh TPA capacity, exports to 130+ countries and expected water-infrastructure demand.

Financial highlights

• Consolidated Q4FY26 revenue was ₹1,493 crore, down 12.2% YoY; EBITDA was ₹99 crore and PAT ₹16 crore.

• Consolidated FY26 EBITDA margin was 9.4%; gross profit was ₹2,742 crore, down 26.1%, and diluted EPS was ₹2.6 versus ₹11.5 in FY25.

• Standalone FY26 revenue was ₹5,033 crore, EBITDA ₹499 crore and net profit ₹131.3 crore; revenue and net profit fell 25.4% and 81.6%, respectively.

• Standalone Q4 total income was ₹1,228 crore, down 23.3% YoY; EBITDA margin was 4.7% and PAT was a ₹10.7 crore loss.

• DI pipe, fittings and CI pipe volume was 1.48 lakh tons in Q4, down 21% YoY, and 5.84 lakh tons in FY26, down 25%.

Outlook and guidance

• FY27 pipe dispatch guidance is ~7 lakh tons; consolidated EBITDA margin of 13%-14% is considered achievable, with slower Q1-Q2 and stronger Q3-Q4.

• Domestic demand is expected to recover gradually from mid-Q2, with stronger activity in Q3-Q4 under Jal Jeevan Mission 2.0.

• Management sees 14%-16% EBITDA margins as achievable from the next FY onward; recovery is expected to be gradual.

• T.I.S. Italy revenue is projected at INR 440-450 crore for the calendar year, with 14%-15% margins; revenue is targeted to double over four years.