Steelcast revenue rises 10.58%, but costs outpace growth
Operating margin fell 1.16 percentage points QoQ, while management outlined 11,750 TPA of capacity additions.
Filed 13 Nov 2026, 20:19 IST · after market close · Steelcast Ltd (STEELCAS)
Key takeaways
- Revenue increased +10.58% QoQ, but expenses rose +12.30%, narrowing operating margin by 1.16 percentage points to 24.47%.
- Net profit was nearly flat at Rs 23.70 cr QoQ as interest rose +147.06% and the tax rate increased by 0.39 percentage points.
- Management said FY27 growth is expected to exceed 30%, alongside 11,750 TPA of capacity additions over two years.
Price around the results
Revenue growth translated weakly into profit
Steelcast's standalone revenue grew +10.58% QoQ, but operating profit rose only +5.56% as costs expanded faster. Net profit was almost unchanged, declining -0.04% QoQ to Rs 23.70 cr. This marks a clear loss of earnings momentum despite higher sales.
Higher costs and financing expense compressed margins
Expenses grew +12.30% QoQ against revenue growth of +10.58%, reducing operating margin by 1.16 percentage points. Interest expense increased +147.06%, while the tax rate rose by 0.39 percentage points, limiting the conversion of operating profit into net profit. Other income contributed 5.95% of pre-tax profit, so it was a limited support to reported earnings quality.
Margin remains above the Industrials peer median
Steelcast's 24.47% operating margin was 12.97 percentage points above the 11.50% median for the 258 Industrials peers that had reported the quarter. The sequential margin decline from 25.63% to 24.47% is therefore a deterioration from a relatively high base, but it still leaves the company well above the sector comparison.
Management links growth to new sectors and capacity
Management said it expects more than 30% growth in FY27 and identified mining and earthmoving as key sectors, with Ground Engaging Tools and defence expected to ramp up. The company said it has approved an additional 3,250 TPA capacity expansion involving about Rs 31 cr, taking total planned additions to 11,750 TPA with investment of about Rs 151 cr over two years. Management also said new renewable plants are expected to generate annual power-cost savings of about Rs 4.5 cr.
Results were filed after market close
The results were filed after market close, so the stock's immediate response has not yet been established. There is no same-day price move to compare with the stock's historical post-results reaction.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹138 cr | ₹125 cr | +10.58% |
| Other income | ₹2 cr | ₹3 cr | -41.36% |
| Expenses | ₹104 cr | ₹93 cr | +12.30% |
| Operating profit | ₹34 cr | ₹32 cr | +5.56% |
| Operating margin (%) | 24.47% | 25.63% | — |
| Interest | ₹0 cr | ₹0 cr | +147.06% |
| Depreciation | ₹3 cr | ₹3 cr | +1.22% |
| Profit before tax | ₹32 cr | ₹32 cr | +0.44% |
| Tax | ₹8 cr | ₹8 cr | +1.99% |
| Net profit | ₹24 cr | ₹24 cr | -0.04% |
| EPS (₹) | ₹2.34 | ₹2.34 | +0.00% |
Operating margin of 24.47% compares with a Industrials sector median of 11.50% across 258 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.
Guidance & outlook
- Steelcast expects more than 30% growth in FY27.
- Mining and earthmoving will be key sectors, while GET and defence industries are expected to ramp up.
Expansion
- The new renewable plants are expected to generate annual power cost savings of about Rs. 4.5 crore.
- An additional 3,250 TPA capacity expansion was approved with a further investment of approximately Rs. 31 crore.
- Total capacity addition is 11,750 TPA with total investment of approximately Rs. 151 crore over the next two years.
New orders
- The company expects repeat orders from overseas defence customers.
New initiatives
- The company plans to strengthen existing customer relationships and enhance its component basket through new product development.
- Steelcast is developing new sectors including construction, Ground Engaging Tools and defence.
Competition
- Steelcast competes with global players.
Problems & risks
- The company identifies global demand and cyclicality as a risk exposure.
- Raw material and energy volatility are identified as a risk exposure.
- Long qualification cycles are identified as a risk exposure.
What to watch
- Whether operating margin holds above 24.47% after the 1.16-point QoQ decline.
- Whether expenses grow more slowly than revenue after +12.30% versus +10.58% QoQ.
- Progress against management's stated 11,750 TPA capacity addition and FY27 growth expectation above 30%.