Nelcast Q1 FY27: PAT Falls 59% YoY to ₹5.1 Cr as Cost Inflation Squeezes Margins
PAT -58.93% YoY · revenue +2.77% · margins compressing
₹341.05 Cr
+2.77% YoY
₹5.14 Cr
-58.93% YoY
1.49%
-2.2pp YoY
₹0.59
Nelcast's Q1 FY27 (quarter ended 30 June 2026) print is a margin story, not a revenue one. Revenue from operations rose a modest 2.8% YoY to ₹341.05 Cr (from ₹331.86 Cr), but net profit fell 58.9% YoY to ₹5.14 Cr (from ₹12.50 Cr), and EPS dropped to ₹0.59 from ₹1.44. Sequentially the fall is sharper — revenue down 7.4% and PAT down 66.4% versus Q4 FY26's ₹15.27 Cr — but Q4 is typically the seasonally strongest quarter for the company (year-end despatches), so the YoY comparison is the one that matters and it shows genuine deterioration, not just a high base rolling off.
Q1 FY-2027 vs prior quarters
The squeeze sits entirely in the cost line. Total expenses grew 6.1% YoY to ₹338.70 Cr, outpacing the 2.8% revenue growth: cost of materials consumed rose 9.3% (₹154.05 Cr vs ₹140.97 Cr), employee benefits expense rose 9.7% (₹23.85 Cr vs ₹21.75 Cr), and other expenses rose 8.5% (₹107.66 Cr vs ₹99.19 Cr). Finance costs fell 29.6% YoY (₹6.57 Cr vs ₹9.32 Cr) on presumably lower debt/rates, and depreciation was flat, but neither offset the input-cost inflation. Net profit margin compressed to roughly 1.5% from 3.7% a year ago and 4.1% last quarter; EBITDA margin (PBT + finance cost + depreciation, over revenue) fell to approximately 5.9% versus the 8.5–8.7% band the company ran through FY26.
The stock went into the print at ₹123.99, down 6.4% over the past month of trading.
What the summary numbers don't show
Standalone and consolidated results are identical — subsidiary NC Energy Limited has not commenced commercial operations; no exceptional items in this or the comparable quarters.
There is no management guidance or prior concall commentary on record to grade this print against, and management gives no formal outlook in this filing — a web search for analyst/consensus estimates on this quarter turned up nothing solid either, so both vs-guidance and vs-street read as unknown rather than assumed met. The result lands against a strong FY26 base (full-year PAT up 30% YoY to ₹48.4 Cr, EBITDA up 18%, per the company's own prior disclosure), making this quarter read as a sequential deceleration from that momentum rather than a one-off. The filing itself carries no order-book, capacity or segment disclosures beyond the single Iron Castings segment note; concurrent corporate activity this quarter (44th AGM held alongside results, FY26 BRSR filing, annual report dispatch) is administrative and not tied to the operating numbers.
W1
Whether raw material, employee and other operating costs (+9.3%/+9.7%/+8.5% YoY this quarter) ease in Q2 FY27, allowing margins to recover toward the 8.5–9% OPM band seen through FY26.
W2
Management commentary at the Q1 conference call scheduled 28 July 2026 on the drivers behind this quarter's cost inflation and margin compression.
W3
Whether the 7.4% QoQ revenue and 66.4% QoQ PAT decline from Q4 FY26 (seasonally the strongest quarter) reverses in Q2 or signals a more structural margin reset.
Standalone and consolidated are identical since subsidiary NC Energy Limited has not commenced commercial operations (auditor confirms subsidiary revenue/PAT/TCI all nil). No exceptional items in current or comparable quarters, so no adjustment needed for one-offs.