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Alicon Castalloy LtdQ1 FY27 earnings call

· All quarters

Summary generated by AI from the official transcript Alicon Castalloy Ltd filed with BSE on 18 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries

The short read

Alicon Castalloy reported Q1 FY27 total income of Rs. 579 crore, up 37% year-on-year, with EBITDA margin of 9.5% versus 11.4% a year earlier, as input cost inflation pressured profitability despite strong volume growth. Management said underlying growth, adjusted for aluminium price effects, was approximately 17.5% on a consolidated basis and 22% on a stand-alone basis. The company also outlined a new Rs. 125 crore investment in a leased Shikrapur facility and cited an executable order book of approximately Rs. 8,450 crore over six years.

Numbers mentioned

Total income: Rs. 579 crore (Q1 FY27)

p. 7
During the quarter, total income stood at Rs. 579 crore, growing by 37% year-on-year and 17% on a sequential basis.

Vimal Gupta, page 7 of the filed PDF · View the filing

EBITDA: Rs. 55 crore (Q1 FY27)

p. 7
The EBITDA was Rs. 55 crore with the EBITDA margin of 9.5%.

Vimal Gupta, page 7 of the filed PDF · View the filing

Profit before tax: Rs. 18 crore (Q1 FY27)

p. 7
We are pleased to report strong growth in profitability with profit before tax of Rs. 18 crore, growing 45% year-on-year and profit after tax Rs. 12 crore, higher by 23% year-on-year basis.

Vimal Gupta, page 7 of the filed PDF · View the filing

Consolidated revenue growth: 37.7% (Q1 FY27 YoY)

p. 3
During the quarter, Alicon registered a year-on-year growth of approximately 37.7% on a consolidated basis and 43.6% on a stand-alone basis.

Sumit Bhatnagar, page 3 of the filed PDF · View the filing

Underlying volume growth (material-adjusted): 17.5% consolidated, 22% stand-alone (Q1 FY27)

p. 3
If we adjust the impact of material inflation, our underlying volume or growth is approximately 17.5% on a consolidated basis, and 22% on a stand-alone basis.

Sumit Bhatnagar, page 3 of the filed PDF · View the filing

Commercial vehicle segment growth: 26% (Q1 FY27)

p. 3
We have registered approximately 26% growth in commercial vehicle segment, supported by the conversion of some of the businesses we acquired recently into mass production.

Sumit Bhatnagar, page 3 of the filed PDF · View the filing

Value addition growth: 17.6% (Q1 FY27)

p. 5
During the quarter, which has just gone by, we registered an approximate 17.6% growth in our value addition.

Sumit Bhatnagar, page 5 of the filed PDF · View the filing

Executable order book: Rs. 8,450 crore (as on 30th June 2026, over FY2026-2031)

p. 9
Alicon's executable order book stands at approximately Rs. 8,450 crore as on 30th June, which represents executable orders over a period of six years from 2026 to 2031.

Vimal Gupta, page 9 of the filed PDF · View the filing

Capex: Rs. 40 crore (Q1 FY27)

p. 9
For quarter 1 FY27, capital expenditure was approximately Rs. 40 crore and for the full year, the plan is for approximately Rs. 150 crore.

Vimal Gupta, page 9 of the filed PDF · View the filing

FY26 total tonnage: 34,000 tonnes (FY26)

p. 15
before we go to the next question, just to answer to the question which was asked before this on the total tonnage of the last financial year, it was 34,000

Sumit Bhatnagar, page 15 of the filed PDF · View the filing

ROCE: 10.7% (FY26)

p. 19
the last financial year, our ROCE was as low as 10.7%, which already is looking at 15% by only minor tweaks, which we have done in the business process.

Sumit Bhatnagar, page 19 of the filed PDF · View the filing

Non-automotive share of order book: 2% (approximately Rs. 126 crore) (as on 30th June 2026)

p. 12
Out of this order book of Rs. 8,450 crore, we see at this moment, the non-auto visibility is 2%. So, this is roughly around Rs. 126 crore.

Rajiv Gupta, page 12 of the filed PDF · View the filing

EV share of order book: 16%

p. 21
In this pie, the electric vehicle is around 16% and hybrid is around 12%.

Rajiv Gupta, page 21 of the filed PDF · View the filing

Machining share of PV tonnage: 65% to 70%

p. 25
At this moment, this is in tune to 65% to 70%.

Rajiv Gupta, page 25 of the filed PDF · View the filing

Exports share of new business: approximately 40%

p. 25
On the new business, exports is near about 40%.

Rajiv Gupta, page 25 of the filed PDF · View the filing

What management said it would do

A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.

Top line growth (material-adjusted) — 8% to 10% · FY27

stated firmly by Vimal Gupta

p. 9
First, to support 8% to 10% underlying top line growth that we have guided for while maintaining the quality of the growth.

Vimal Gupta, page 9 of the filed PDF · View the filing

Revenue growth (material-neutralized) — 12% to 15% · FY27

stated conditionally by Sumit Bhatnagar

p. 10
I can see a growth of approximately 12% to 15% coming in this financial year, which is neutralized to the material effect.

Sumit Bhatnagar, page 10 of the filed PDF · View the filing

EBITDA margin — at least 1% improvement · FY27

stated conditionally by Vimal Gupta

p. 11
On the other, we are also expecting at least 1% improvement in the EBITDA margins.

Vimal Gupta, page 11 of the filed PDF · View the filing

New Shikrapur facility annual revenue — Rs. 500 crore · 4 to 5 years

stated firmly by Sumit Bhatnagar

p. 5
Based on our current programs, we expect this facility to generate approximately Rs. 500 crore of annual revenue over a period of four to five years of time.

Sumit Bhatnagar, page 5 of the filed PDF · View the filing

Capex — approximately Rs. 150 crore · FY27

stated firmly by Vimal Gupta

p. 9
For quarter 1 FY27, capital expenditure was approximately Rs. 40 crore and for the full year, the plan is for approximately Rs. 150 crore.

Vimal Gupta, page 9 of the filed PDF · View the filing

New facility SOP — March 2027

stated firmly by Sumit Bhatnagar

p. 15
we expect our SOP in those facilities to come by March 2027, which would be within six months of acquiring the plant.

Sumit Bhatnagar, page 15 of the filed PDF · View the filing

Non-automotive revenue pie — next financial year

stated as an aspiration by Sumit Bhatnagar

p. 23
So, that is clearly still an aspiration. There is no change to that.

Sumit Bhatnagar, page 23 of the filed PDF · View the filing

EBITDA margin — 14% to 15%

stated as an aspiration by Sumit Bhatnagar

p. 24
See, there is no reason I would say that there is no such possibility. Yes, there is a possibility. And I can only tell you that these are some of the aspiration numbers the team is working hard towards.

Sumit Bhatnagar, page 24 of the filed PDF · View the filing

New Pune plant tonnage capacity — 3,000 tons rising to 7,000 tons

stated firmly by Sumit Bhatnagar

p. 20
But to begin with, we will start with 3,000 tons, which will go up to 7,000 tons in time to come.

Sumit Bhatnagar, page 20 of the filed PDF · View the filing

JLR e-Axle supply rate — from Jan 2027

stated firmly by Sumit Bhatnagar

p. 16
we already have an indication from JLR that this number would further increase from Jan 2027.

Sumit Bhatnagar, page 16 of the filed PDF · View the filing

European operations recovery — third quarter of this financial year onward

stated conditionally by Sumit Bhatnagar

p. 10
But the new investments on the technology for the new businesses one has already been committed in the last year, and it will show results from the third quarter of this financial year.

Sumit Bhatnagar, page 10 of the filed PDF · View the filing

Q&A highlights

Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.

Management guided to 12-15% material-neutralized growth for FY27 and expects a similar growth rate over the next few years.

Answered by Sumit Bhatnagar

Asked by Raghunandhan N L: How does management see FY27 revenue growth and the multi-year outlook?

p. 10
I can see a growth of approximately 12% to 15% coming in this financial year, which is neutralized to the material effect.

Sumit Bhatnagar, page 10 of the filed PDF · View the filing

CFO said margins are expected to improve by at least 1% this year with further progress difficult to guide precisely for future years.

Answered by Vimal Gupta

Asked by Raghunandhan N L: What is the margin outlook for coming quarters and over FY28-29?

p. 11
So, for this year, on the growth side, Sumit has already explained 12% to 15% growth we are expecting by neutralizing the impact of the aluminium.

Vimal Gupta, page 11 of the filed PDF · View the filing

Non-auto visibility is about 2% of the order book, roughly Rs. 126 crore, though management expects this to expand.

Answered by Rajiv Gupta

Asked by Avinash Nahata: How much of the Rs. 8,450 crore order book is non-automotive?

p. 12
Yes. Out of this order book of Rs. 8,450 crore, we see at this moment, the non-auto visibility is 2%. So, this is roughly around Rs. 126 crore.

Rajiv Gupta, page 12 of the filed PDF · View the filing

Management said JLR consumption has started at 600 sets per week, marginally reflected in Q1, expected to peak by Q3 of the calendar year.

Answered by Sumit Bhatnagar

Asked by Riddhesh Gandhi: What is the update on JLR EV order ramp-up?

p. 16
That is very marginally, very marginally reflecting in the first quarter. They have not completely peaked, but we expect them to peak by quarter three of this calendar year.

Sumit Bhatnagar, page 16 of the filed PDF · View the filing

Management attributed this to a shift toward higher-value products and freeing capacity from lower-margin 2-wheeler business, expecting ROCE to improve.

Answered by Sumit Bhatnagar

Asked by Riddhesh Gandhi: Given near-full capacity utilization, why are return ratios not stronger?

p. 19
I think if you only look at numbers, the last financial year, our ROCE was as low as 10.7%, which already is looking at 15% by only minor tweaks, which we have done in the business process.

Sumit Bhatnagar, page 19 of the filed PDF · View the filing

Management said the EV bet did not materialize as expected, leading to a pivot toward traditional ICE/hybrid components with shorter validation cycles and quicker realization.

Answered by Rajiv Gupta

Asked by Ramesh: What has changed to make the current order book more credible than past guidance?

p. 20
Unfortunately, EV, the way it was to be grown, it did not happen. And that is the reason we got a hit.

Rajiv Gupta, page 20 of the filed PDF · View the filing

Management gave a breakdown of the order book by powertrain type.

Answered by Rajiv Gupta

Asked by Ramesh: How is the order book split between EV, hybrid and ICE?

p. 21
In this pie, the electric vehicle is around 16% and hybrid is around 12%.

Rajiv Gupta, page 21 of the filed PDF · View the filing

Management said the current machined share is 65-70% and expects it to increase as the company invests in in-house machining.

Answered by Sumit Bhatnagar

Asked by Ramesh: What percentage of PV tonnage is machined versus non-machined, and will this ratio change?

p. 25
No. This ratio is going to change, definitely. This number is going to increase.

Sumit Bhatnagar, page 25 of the filed PDF · View the filing

Management said the Slovakia location remains strategically strong and they intend to grow the plant through automation and added machines rather than a new geography.

Answered by Sumit Bhatnagar

Asked by Ramesh: Is there potential to expand the European plant given rising input costs there?

p. 26
But still strategically, where we are located in, which is in Slovakia is still one of the best places for anybody to go and make investments.

Sumit Bhatnagar, page 26 of the filed PDF · View the filing

Risks flagged

Volatility in input costs including metal, gas, and tooling costs pressured margins

p. 3
The quarter witnessed a significant volatility in the input cost, particularly because of the geopolitical developments in the Middle East, metal prices, gas prices, tooling costs and several other input costs moved sharply.

Sumit Bhatnagar, page 3 of the filed PDF · View the filing

Softer European business due to mature programs nearing end of life cycle

p. 7
Our international business, however, had a relatively softer quarter. This was largely in line with our expectations as certain mature programs in our European operations are nearing the end of their life cycle, while the next set of programs is yet to ramp up to meaningful production volumes.

Vimal Gupta, page 7 of the filed PDF · View the filing

Gap between declining legacy international business and new program ramp-up affecting consolidated margins

p. 8
As a result, we are currently in transition phase where the decline in legacy business has not yet been fully offset by new program launches.

Vimal Gupta, page 8 of the filed PDF · View the filing

Delay in customer price increase recovery due to timing lag with OEMs

p. 11
So those are under discussion and maybe some part we will get in quarter 2 and maybe quarter 3 also because you know that OEMs, they do not give all corrections immediately.

Vimal Gupta, page 11 of the filed PDF · View the filing

EV segment growth bet did not materialize as expected in the past, impacting order book fulfillment

p. 20
Unfortunately, EV, the way it was to be grown, it did not happen. And that is the reason we got a hit.

Rajiv Gupta, page 20 of the filed PDF · View the filing

Higher freight costs not fully passed through in some contract models

p. 17
So, generally, there are two models in which we operate. In some of the models where the freight prices are substantially high, some of the OEMs pick up the material from our place and then take it.

Sumit Bhatnagar, page 17 of the filed PDF · View the filing

Competitive pressure from increasing aluminum die casting capacity in the industry

p. 24
Yes, the competition is increasing. We cannot sit idle. We cannot be complacent 100%.

Sumit Bhatnagar, page 24 of the filed PDF · View the filing

Losses from investments in programs like JLR where SOP has been delayed

p. 19
So, you know, we have put up the investments and we are not able to finish the orders. So, there is a delay in the SOP.

Vimal Gupta, page 19 of the filed PDF · View the filing

Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.