Alicon Castalloy (531147) Q3 24/25 earnings summary

Executive summary

• Q3 FY2025 revenue was INR 393 crore (₹39,210.04 lakhs), down 3% YoY and 15% sequentially, mainly due to subdued export demand and customer-specific disruptions in Europe and India.

• Net profit for Q3 FY25 was INR 7.8 million (₹78.11 lakhs), a sharp decline from INR 170 million YoY and INR 1,680.92 lakhs in Q2 FY25.

• Profitability was pressured by adverse product/geographic mix, with higher two-wheeler share offsetting declines in higher-margin EV and CV segments.

• Management expects Q3 to mark the bottom, with sequential improvement anticipated from Q4 and into FY2026, focusing on product diversification and operational optimization.

• Nine-month consolidated net profit was ₹3,662.65 lakhs, compared to ₹4,074.14 lakhs for the same period last year.

Financial highlights

• Q3 FY25 total income: INR 393 crore (₹39,210.04 lakhs), down 3% YoY and 15% QoQ; 9M FY25 total income: INR 1,298.2 crore, up 14% YoY.

• Q3 FY25 EBITDA: INR 350 million (₹35.1 crore), margin at 8.9% vs 13% YoY; net profit at INR 7.8 million (₹0.8 crore), down 95% YoY.

• 9M FY25 EBITDA: INR 1,500 million (₹150.2 crore), up 7% YoY; PAT at INR 370 million (₹36.6 crore), down from INR 410 million YoY.

• CapEx for Q3 was INR 420 million (₹42 crore); nine-month CapEx at INR 1,400 million (₹140 crore), focused on machinery and new product development.

• Standalone net loss for Q3 FY25 was ₹105.65 lakhs, compared to a profit of ₹1,444.19 lakhs in Q2 FY25 and ₹1,274.80 lakhs in Q3 FY24.

Outlook and guidance

• Full-year revenue target of INR 1,800 crore may not be met due to export and CV demand softness; updated guidance to be provided after budget finalization.

• Management anticipates recovery in Q4 and expects improved performance in FY2026, with strong order book visibility and focus on diversification.

• Target of INR 2,200 crore topline by FY2026 likely postponed by at least a year due to EV OEM delays.

• Management and auditors confirm compliance with Ind AS and regulatory requirements, with no material misstatements identified.