India · Delayed Price · Currency is INR Electrosteel Castings Earnings Call Transcripts
Fiscal Year 2027
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Q1 earnings reflected weak volumes but improved sequential margins, supported by cost and inventory actions. Management expects H2 recovery and is investing in valves, coatings and adjacent businesses as public water infrastructure spending accelerates.
Fiscal Year 2026
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FY26 results reflected a steep volume decline and weak domestic demand, partly cushioned by exports. Management expects gradual recovery under Jal Jeevan Mission 2.0, while Middle East disruption and higher input costs remain risks.
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Q3 weakness reflected delayed JJM spending, lower domestic volumes and pressured realizations; consolidated PAT was a ₹22 crore loss, including a ₹38 crore NRV provision. Export growth, lower debt and expected funding resumption support a gradual recovery outlook.
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Q2 results reflected weak domestic demand, while a one-time INR 64 crore provision reversal boosted reported EBITDA. Management expects demand and volumes to recover from calendar 2026, with FY27 volume guidance of 8-8.5 lakh tonnes.
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Q1 was subdued by delayed water-infrastructure spending and maintenance, but management expects recovery from H2 and guides to FY26 volumes of ~7.5 lakh tonnes. The T.I.S. valve acquisition adds a growth platform, while most future CapEx is expected to be internally funded.
Fiscal Year 2025
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FY25 earnings were affected by maintenance shutdowns and slower H2 demand, while capacity expanded to 9 lakh tons. Management expects demand recovery, FY26 DI sales of 8.3–8.5 lakh tons and medium-term EBITDA margins of 15%–18%.
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Q3 results were weighed down by the blast-furnace shutdown, while nine-month profit grew. Management expects demand recovery and targets FY26 sales of 8.5–9 lakh tons with 16%–18% EBITDA margins.
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Q2 earnings were affected by the extended furnace shutdown, while H1 income, EBITDA and PAT grew YoY. Management lowered FY25 volume expectations toward the lower end of its range but anticipates improving stability and continued infrastructure-led demand.
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Consolidated revenue rose 18.9% and EBITDA nearly doubled, supported by domestic DI pipe demand and operating efficiencies. FY25 DI pipe sales are guided at ~8.5 lakh tonnes, with capacity expansion aimed at 1 million tonnes by FY26.