Nelcast's Q1 operating margin stood at 4.84%
Other income of Rs 4.34 cr supported consolidated profit before tax of Rs 6.69 cr, while interest and depreciation remained substantial charges.
Filed 27 Jul 2026, 14:25 IST · NELCAST (NELCAST)
Key takeaways
- Nelcast reported consolidated Q1FY27 operating profit of Rs 16.51 cr at a 4.84% operating margin.
- Other income of Rs 4.34 cr was a significant contributor alongside consolidated profit before tax of Rs 6.69 cr.
- Interest of Rs 6.57 cr and depreciation of Rs 6.84 cr absorbed much of operating profit before consolidated net profit settled at Rs 5.14 cr.
Operating profit left limited room after finance and depreciation charges
Nelcast's consolidated revenue was Rs 341.05 cr, with operating profit of Rs 16.51 cr and a 4.84% operating margin. Interest of Rs 6.57 cr and depreciation of Rs 6.84 cr together reduced the conversion of operating profit into profit before tax. Consolidated net profit was Rs 5.14 cr, with EPS of Rs 0.59.
Other income formed an important part of pre-tax earnings
Other income was Rs 4.34 cr against consolidated profit before tax of Rs 6.69 cr, so reported earnings included a material non-operating contribution. Tax was Rs 1.55 cr at a 23.21% tax rate. With no quarter-on-quarter or year-on-year driver data, the filing does not establish whether revenue growth or cost growth drove the operating margin.
Management flags export exposure and a narrow global supplier base
In its investor presentation, management said exports were affected in FY26 by a slowdown in the U.S. economy and geopolitical headwinds. The company also said Nelcast is among only a few industry players capable of meeting the requirements of top global OEMs and Tier 1 suppliers. These comments frame export conditions and customer qualification as key business factors alongside the current 4.84% operating margin.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹341 cr |
| Other income | ₹4 cr |
| Expenses | ₹325 cr |
| Operating profit | ₹17 cr |
| Operating margin (%) | 4.84% |
| Interest | ₹7 cr |
| Depreciation | ₹7 cr |
| Profit before tax | ₹7 cr |
| Tax | ₹2 cr |
| Net profit | ₹5 cr |
| EPS (₹) | ₹0.59 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Competition
- Nelcast is among only a few companies capable of meeting top global OEM and Tier 1 requirements.
Problems & risks
- Exports were affected by a slowdown in the U.S. economy and geopolitical headwinds in FY26.
What to watch
- Whether operating margin moves above or below 4.84% in the next reported quarter.
- Whether other income remains material relative to profit before tax of Rs 6.69 cr.
- Whether interest stays near Rs 6.57 cr as operating profit changes.