Synopsis: Nelcast Ltd. reported a steady performance in Q4 FY26 with healthy growth in revenue and profitability on a year-on-year basis. The company also announced a final dividend for shareholders, reflecting confidence in its operational performance and future outlook.
Nelcast Ltd. is one of India’s leading manufacturers of ductile and grey iron castings used across commercial vehicles, tractors, construction equipment, and railways. The company supplies critical auto components to major OEMs and continues to strengthen its presence in the domestic as well as export markets through operational efficiency and expanding manufacturing capabilities.
The company currently has a market capitalization of Rs. 1,180 crore, while the stock trades at Rs. 136.90 per share down by 3.50% compared to its previous close of Rs. 140. The stock has touched a 52-week high of Rs. 181 and a 52-week low of Rs. 86. Nelcast currently trades at a P/E ratio of 24.4, with a Return on Equity (ROE) of 8.43% and Return on Capital Employed (ROCE) of 11.4%.
Q4 FY26 Performance
During Q4 FY26, the company reported revenue from operations of Rs. 368 crore, registering a growth of 11.5% YoY compared to Rs. 330 crore reported in Q4 FY25. On a sequential basis, revenue also increased by 11.5% QoQ from Rs. 330 crore posted in Q3 FY26.
Operating profit stood at Rs. 32 crore during the quarter, compared to Rs. 30 crore in Q4 FY25, reflecting a growth of 6.7% YoY. However, on a sequential basis, operating profit declined marginally by 3% from Rs. 33 crore reported in the December quarter. Operating profit margin (OPM) for Q4 FY26 came in at 9%.
Profit before tax (PBT) was reported at Rs. 21 crore in Q4 FY26, compared to Rs. 18 crore in the corresponding quarter last year, marking a growth of 16.7% YoY. On a QoQ basis, PBT remained flat at Rs. 21 crore.
Net profit for the quarter stood at Rs. 15 crore, registering a growth of 7.1% YoY compared to Rs. 14 crore reported in Q4 FY25. Sequentially, net profit declined by 6.3% from Rs. 16 crore posted in Q3 FY26. EPS for the quarter stood stable with moderate earnings improvement despite margin pressures.
The Board of Directors recommended a dividend of 35%, equivalent to Rs. 0.70 per equity share having a face value of Rs. 2 each for FY26. The dividend is subject to shareholders’ approval at the upcoming 44th Annual General Meeting (AGM). The company stated that the dividend, if approved, will be paid within 30 days from the date of declaration at the AGM.
Industry Outlook
India’s capital goods and automotive component sector continues to witness strong long-term growth driven by rising infrastructure spending, industrial expansion, and increasing automobile demand. The Indian electrical equipment market is expected to grow at a CAGR of 14.3% between FY24 and FY28, creating significant opportunities for engineering and casting companies.
Government initiatives such as higher infrastructure capex, manufacturing-focused policies, and increased investments in transportation and industrial sectors are expected to support demand for commercial vehicles and auto components. Growth in tractor sales, construction equipment demand, and exports could further benefit companies operating in the casting and engineering space.
Nelcast delivered a stable Q4 FY26 performance with double-digit revenue growth and improvement in profitability on a yearly basis. While sequential profitability remained largely stable, the company’s dividend announcement and improving demand outlook in the automotive and engineering sectors continue to support investor sentiment.
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