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View Claim Ledger →Alicon Castalloy Limited — Q4 FY26
Alicon delivered a record quarterly revenue of ₹495 crore (+16% YoY), driven by strong domestic demand across PV, CV, and two-wheeler segments.
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Alicon delivered a record quarterly revenue of ₹495 crore (+16% YoY), driven by strong domestic demand across PV, CV, and two-wheeler segments. However, EBITDA fell 3% YoY to ₹46 crore, with margins contracting ~180bps to 9.3% due to elevated aluminium prices, one-time costs (~₹15 crore), and adverse mix shift. PAT declined 11% YoY to ₹8 crore. Management guided for 8-10% revenue growth in FY27 (ex-aluminium pass-through) and expects EBITDA margin improvement of ~150bps to 12.5-13%, aided by operating leverage and cost initiatives. Capex of ₹130-150 crore is planned, including a new plant. The executable order book stands at ₹7,600 crore over 6 years. Key risks include sustained aluminium price volatility, labour cost inflation (35% hike at Bawal plant), and delayed ramp-up of global programs like JLR.
Promises0 met · 1 missedRisks4 trackedTranscriptfull text
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Risk Intelligence
Aluminium Price Volatility
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Transcript
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Read Transcript →Quarter Snapshot
Order Book
₹7,600 Cr
N/A
Executable order book over 6 years (FY27-FY32), excluding FY26 revenue.
Two-Wheeler Segment Share
42%
+?pp YoY
Two-wheeler contribution increased meaningfully YoY, driven by Royal Enfield and Hero.
New Orders Added in FY26
14 parts
N/A
New parts from 7 customers, including Lamborghini/Audi, with peak annual sales potential of ₹140 Cr.
Capacity Utilization
78%
N/A
Utilization remains moderate; new capex needed to absorb order book.
What Changed vs Last Quarter
NEW
FY27 Revenue Growth of 8-10%
Management expects 8-10% revenue growth in FY27, excluding the impact of aluminium price pass-through.
NEW
EBITDA Margin Improvement of ~150bps
EBITDA margin expected to improve by ~1.5% to 12.5-13% in FY27, driven by operating leverage and cost initiatives.
NEW
Capex of ₹130-150 Cr in FY27
Capital expenditure planned at ₹130-150 crore, including a new plant, automation, and machining capacity.
NEW
New Plant Operational by FY27 End
At least one new manufacturing site to be operational by end of FY27 to address capacity constraints.
DROPPED
Q4 FY26 EBITDA margin target of 12.5-13%
Management expects EBITDA margin to recover to 12.5-13% in Q4 FY26, driven by improved product mix and cost control.
DROPPED
Full-year FY26 EBITDA margin around 12-12.5%
For the full year, EBITDA margin is expected to be approximately 12-12.5%.
DROPPED
FY29 exit revenue run-rate of ~₹3,500 crore
Based on the ₹9,100 crore order book, the company expects an exit revenue run-rate of ~₹3,500 crore by FY29.
DROPPED
Capex of ₹125-130 crore for FY26
Capital expenditure for FY26 is expected to be in the range of ₹125-130 crore, focused on automation and capacity expansion.
NEW RISK
Aluminium Price Volatility
Sharp increase in aluminium prices (30-35% QoQ) pressured gross margins; pass-through lags may persist.
NEW RISK
Labour Cost Inflation at Bawal Plant
Minimum wage hike in Haryana effective April 2026 will increase labour cost by ~35% at the Bawal factory.
NEW RISK
Delayed Ramp-Up of Global Programs
JLR program delayed by 18 months; export volumes remain soft due to geopolitical issues and tariffs.
NEW RISK
Low Asset Turnover on New Capex
New investments require complex machining and automation, limiting asset turnover to below 2x historically.
RISK GONE
Global demand weakness and tariff uncertainty
US and UK markets saw degrowth; tariff-related actions have dampened export inquiries. Recovery depends on trade deal outcomes.
RISK GONE
GLR EV project ramp-up delays
The EXL housing project for a premium German OEM is delayed; full capacity utilization expected only by mid-2026, impacting margins.
RISK GONE
One-time cost overruns and asset impairments
Higher employee costs, asset write-offs, and labor code implementation charges impacted Q3 profitability; full-year impact ~₹10 crore.
RISK GONE
Dependence on domestic auto cycle
81% revenue from domestic market; any slowdown in Indian auto demand could affect growth, especially given limited non-auto diversification.
Fast read
Guidance and risk preview
Management expects 8-10% revenue growth in FY27, excluding the impact of aluminium price pass-through.
Sharp increase in aluminium prices (30-35% QoQ) pressured gross margins; pass-through lags may persist.
View Risks →