Simplex Castings Reports 40.5% PAT Growth in FY26; Eyes ₹500 Cr Revenue Milestone

Key numbers

Revenue Growth YoY	18.54%Annual FY26
Net Profit Growth	40.5%Year-on-Year
Market Cap	₹349.33 CrSmall Cap
P/E Ratio	16.43Sector PE: 55.31

Key highlights

• Annual revenue reached ₹202.90 crore, representing a year-on-year growth of 18.05% for FY26.
• Net profit surged by 40.50% YoY to ₹21.26 crore, supported by a shift to value-added engineering products.
• The company received critical RDSO approval for the railway wagon bogie segment, a primary driver for future margin expansion.
• Management provided explicit guidance to reach a revenue milestone of ₹500 crore by FY28, suggesting a CAGR of over 50%.
• Operating efficiencies improved as EBITDA margins rose to 18.43%, while the PAT margin stabilized at 10.48%.

Financial Performance and Margin Expansion

Simplex Castings demonstrated strong financial resilience in FY26, reporting a total operating revenue of ₹202.90 crore compared to the previous year. This 18.05% growth was complemented by a more aggressive expansion in the bottom line, where Net Profit (PAT) grew by 40.50% to reach ₹21.26 crore. The improvement in profitability is attributed to an optimized product mix and higher capacity utilization.

EBITDA margins reached 18.43%, reflecting the company's success in managing input costs while transitioning toward higher-margin segments like railway bogies and defense components. The return on equity (ROE) for the year stood at a healthy 18.71%.

Strategic Growth and Railway Segment Pivot

• The company has secured RDSO approval for railway wagon bogies, enabling participation in high-value Indian Railways modernization tenders.
• Revenue contribution from the railway segment is projected to increase from the current 20% to approximately 40% of the total mix.
• Management is actively evaluating inorganic growth opportunities in the allied engineering space to complement its core casting business.
• A transition from bank-funded capital to TReDS (Trade Receivables Discounting System) is being implemented to reduce the cost of funds and improve liquidity.
• New client acquisitions include prominent names such as ThyssenKrupp, BHEL, and SMS India, diversifying the industrial order book.

Management Outlook and FY28 Targets

Looking ahead, the leadership at Simplex Castings has outlined a clear roadmap to achieve a ₹500 crore revenue target by FY28. This ambitious goal is underpinned by a robust quarterly order book that consistently exceeds ₹100 crore. The strategy involves scaling the dedicated Railway Plant and introducing new product lines such as centrifugal cast rolls.

Management expressed high confidence in maintaining a 10% PAT margin as they scale operations. This growth trajectory is expected to be fueled by the ongoing infrastructure push in India and the increasing demand for domestic heavy engineering capabilities in the defense sector.

What to Watch

• Execution of the 50% CAGR growth plan required to hit the ₹500 crore revenue target by FY28.
• Successful integration of any potential inorganic acquisitions in the allied engineering sector.
• Impact of the TReDS transition on the company's overall debt profile and interest coverage ratios.
• Consistency in order wins from major PSU clients like BHEL and international partners like ThyssenKrupp.

“Management explicitly guided to a revenue milestone of ₹500 Cr by FY28, representing a >50% CAGR from FY26 levels.”

Simplex Castings · financial snapshot

Share price	₹485.3
Market capitalisation	₹349.33 Cr
Revenue (annual)	₹202.90 Cr
Net profit (annual)	₹21.26 Cr
Revenue (latest quarter)	₹54.76 Cr+15.21% vs previous quarter
Net profit (latest quarter)	₹6.18 Cr+29.87% vs previous quarter
P/E (TTM)	16.43×Sector 55.31×
Promoter holding	50.36%-2.75% QoQ
FII holding	4.94%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.