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Smallcap stock zooms 107% in 3 months, nears record high; here's why
In the past three months, the stock price of the small-cap castings and forgings company has more than doubled or up 107 per cent, from a level of ₹86.36.
Share price of Nelcast has surpassed its previous high of ₹170.85 touched on July 24, 2025. It is quoting close to its record high level of ₹194.50 hit on November 9, 2023.
At 10:58 AM, Nelcast was quoting 11 per cent higher at ₹174, as compared to a 0.02 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped over six-fold, with a combined 5.41 million shares representing 6.2 per cent of the total equity of Nelcast changing hands on the NSE and BSE. Track LIVE Stock Market Updates
Nelcast Q1 results
In the April to June 2025 quarter (Q1FY26), Nelcast reported 57.2 per cent year-on-year (Y-o-Y) growth in consolidated profit after tax (PAT) of ₹12.5 crore. The company had posted PAT of ₹8.0 crore in Q1FY25. Total revenue increased 11.1 per cent Y-o-Y at ₹336.0 crore.
Earnings before interest, taxes, depreciation, and amortisation (Ebitda) jumped 44.3 per cent Y-o-Y at ₹32.4 crore, margin improved 222 bps at 9.6 per cent from 7.4 per cent in the year-ago quarter.
The margins have strengthened significantly, with Ebitda per kg rising 24 per cent Y-o-Y to ₹14.7 per kg, reaffirming guidance to reach ₹15 per kg by the end of FY26. While FY25 was a year of consolidation, FY26 is about building a strong foundation for the future, the company said.
Nelcast FY26 Outlook
The tractor segment saw robust growth, supported by a favourable monsoon, while MHCV and other segments delivered steady performance. Despite early concerns around tariff-related uncertainties in key export markets, the management believes the impact will be limited and manageable.
Exports grew by 17 per cent Y-o-Y to ₹115 crore, and the management remains optimistic about long-term opportunities, especially with the UK FTA expected to shift sourcing preferences to India.
The management said the company's strategic focus on new product development and capacity optimisation in FY26, laying the groundwork for accelerated growth over the next two years. The company reaffirmed Ebitda per kg guidance of ₹15 per kg for FY26, driven by margin expansion and operational efficiencies.
Several other new product samples are also in progress, setting the stage for meaningful growth in FY27 and FY28.
Meanwhile, Nelcast enjoys the confidence of its valued customers for providing quality products. Therefore, as newer and more advanced castings are developed, the company has an edge over the competition due to its diverse capabilities. It has made significant investments to increase capacity and is poised to take advantage of the growth from both the domestic automotive industry and the global market, Nelcast said in its FY25 annual report.
About Nelcast
Nelcast manufactures grey and ductile castings for the M&HCV and tractor industry segments. Around 30-35 per cent of its overall revenues are also generated from export markets. Key products supplied to its M&HCV clients include differential carriers, differential cases, bogie suspension brackets, and conventional brackets, among others.
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