Nelcast margin widens as revenue growth outpaces costs in Q2FY27
Consolidated net profit rose 215.18% QoQ, though other income accounted for 16.42% of pre-tax profit.
Filed 02 Nov 2026, 16:49 IST · after market close · Nelcast Ltd (NELCAST)
Key takeaways
- Revenue grew 19.03% QoQ while expenses rose 14.72%, lifting operating margin by 3.46 percentage points.
- Net profit jumped 215.18% QoQ, but other income contributed 16.42% of pre-tax profit and the tax rate rose 3.07 percentage points.
- At 8.08%, operating margin was 3.75 percentage points below the 11.83% median for 78 Industrials peers.
Price around the results
Revenue growth restores operating leverage
On a consolidated basis, revenue increased 19.03% QoQ, while expenses grew 14.72%, allowing operating profit to rise 108.06%. The improvement indicates that incremental revenue converted into profit more efficiently than in Q1FY27.
Margin improves, but earnings quality needs context
Operating margin expanded by 3.46 percentage points as costs grew more slowly than revenue. Interest expense still increased 13.39% QoQ, while the tax rate rose 3.07 percentage points; other income made up 16.42% of pre-tax profit, so the 215.18% increase in net profit was not entirely operational.
Nelcast remains below the Industrials margin median
The 8.08% operating margin was 3.75 percentage points below the 11.83% median among 78 Industrials peers that had reported the quarter. Nelcast ranked 17th from the bottom on this measure, despite the sequential margin improvement.
Exports were a key part of the company’s quarter
The presentation said Q2 export revenue reached Rs 140.9 cr, up 78.3% year on year. Management said FY26 exports had been affected by a slowdown in the U.S. economy and geopolitical issues, and said Nelcast is among the few industry companies able to meet top global OEM and Tier 1 requirements.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹406 cr | ₹341 cr | +19.03% |
| Other income | ₹4 cr | ₹4 cr | -16.82% |
| Expenses | ₹373 cr | ₹325 cr | +14.72% |
| Operating profit | ₹33 cr | ₹16 cr | +108.06% |
| Operating margin (%) | 8.08% | 4.62% | — |
| Interest | ₹7 cr | ₹7 cr | +13.39% |
| Depreciation | ₹7 cr | ₹7 cr | +1.90% |
| Profit before tax | ₹22 cr | ₹7 cr | +228.55% |
| Tax | ₹6 cr | ₹2 cr | +272.90% |
| Net profit | ₹16 cr | ₹5 cr | +215.18% |
| EPS (₹) | ₹1.86 | ₹0.59 | +215.25% |
Operating margin of 8.08% compares with a Industrials sector median of 11.83% across 78 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2 export revenue reached ₹140.9 crore, up 78.3% year on year.
Competition
- Nelcast is among only a few industry companies capable of meeting top global OEM and Tier 1 requirements.
Problems & risks
- Exports in FY26 were affected by a slowdown in the U.S. economy and geopolitical headwinds.
What to watch
- Whether consolidated operating margin holds above 8.08% in Q3FY27.
- Q3 export revenue versus Rs 140.9 cr reported for Q2FY27.
- Whether expenses continue to grow more slowly than revenue after the 19.03% versus 14.72% split in Q2FY27.