Electrosteel Castings Limited (ELECTCAST)
Micro CapIndustrials stocks · Micro cap · NSE
Electrosteel Castings Limited manufactures Ductile Iron (DI) pipes, fittings, and Cast Iron (CI) pipes, primarily serving the water infrastructure sector. The company has an international valves manufacturing wing (T.I.S. Italy) and is diversifying into industrial paints. It operates with integrated manufacturing and a strong distribution network for domestic and overseas markets.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100Rev -8% YoY · PAT -46% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,426 Cr | -8.5% | -4.5% |
| EBITDA | ₹100 Cr | -41.2% | +61.3% |
| Operating margin | 7.0% | -400 bps | +290 bps |
| PAT | ₹48 Cr | -46.1% | +200.0% |
| PAT margin | 3.4% | -234 bps | +230 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4 FY26 sales volume of DI/CI pipes and fittings declined 21% YoY; full-year volume down 25%. Consolidated Q4 revenue was INR 1,530 cr with 6.5% EBITDA margin, PAT INR 15.9 cr. Full-year EBITDA margin was 9.4%, PAT INR 161.5 cr. Standalone Q4 reported a PAT loss of INR 10.7 cr. Dividend reduced to 90%.
Domestic DI pipe demand was significantly impacted by delays in Jal Jeevan Mission (JJM) fund disbursements, leading to substantial volume and margin pressure. Exports provided a partial offset. While management is optimistic about JJM 2.0 and diversification into valves and paints, near-term challenges from project execution timelines and geopolitical stresses persist, affecting profitability.
Revenue by Geography
Latest issuer-disclosed distribution across 2 reported categories.
Jal Jeevan Mission 2.0
Approval of JJM 2.0 extends budget outlay to INR 8.69 lakh crores up to December 2028, with Central Government contribution enhanced to INR 3.59 lakh crores.
Valves Business (T.I.S. Italy & India)
Acquisition of T.I.S. Italy (manufacturing wing) performed well, with a vision to double revenue in the next four years. Development work for Valvecastings in India has started.
Diversification into Industrial Paints
Company is getting into industrial paint segment with a five-year roadmap to achieve a business revenue topline of around INR 600 crores.
Urban Infrastructure & River Linking
Continued investments in urban infrastructure, sewage networks, irrigation, and the river linking project will create substantial medium to long-term demand.
Valvecastings Plant in India
We have already started the development work for Valvecastings in India and look forward to production soon.
Industrial Paint Plant
We are also setting up a Paint plant. Some money will be invested there. Initial outlay of INR 200-250 crores is expected to be spent over 1.5 to 2 years.
Government Focus on Water Infrastructure
JJM 2.0 reaffirms the Government's continued focus on providing safe drinking water connectivity and strengthening water transmission/distribution.
Integrated Operations & Distribution
Our integrated manufacturing operations and strong distribution network continue to provide us with strategic advantages in serving both domestic and overseas markets.
Improved Industry Visibility
Overall industry visibility has improved meaningfully compared to earlier quarters, with demand momentum expected to strengthen gradually.
Domestic Market Slowdown
The domestic Ductile Iron Pipe industry operated in a relatively subdued environment due to slower execution of water infrastructure projects and delayed fund disbursement under JJM 1.0.
Geopolitical Impact on Exports
There will be an impact on sales to the Middle East starting from March '26 onwards due to the US-Iran conflict. Middle East contributed approximately 50% of our exports.
Rising Input Costs
Cost front is impacted by increased freight, coking coal from overseas, and energy costs in India (up almost 70%-80%). Diesel and petrol prices are also rising.
Supply Chain Disruptions
Movement of ships are getting delayed, disturbing the whole cycle of movement and having an adverse impact on cost and supply chain continuity.
JJM Execution & Fund Disbursement
The main cause for the sudden drop in demand was the complete blocking off of central funds over the last 1.5 years due to issues around JJM implementation.
Geopolitical Conflicts & Energy Disruption
Escalation of the Iran conflict could impact demand, supply chain, and input costs, with a higher impact expected on cost and supply chain.
Demand Volatility & Overcapacity
The industry is running at 50% capacity, and realization for pipes is lower due to overcapacity in the system and lesser demand.
Drought Conditions & Government Spending Reallocation
Severe drought conditions could lead to reallocation of government spending away from existing infrastructure programs towards emergency relief, causing temporary delays.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The management explicitly states year-on-year declines for sales volumes and attributes the subdued environment to factors impacting the full fiscal year, making YoY comparison more relevant for assessing performance trends.
Sales Volume (DI Pipe, Fittings, CI Pipe)
Q4 FY26 stood to 1.48 lakh tons, down by 21% year-on-year basis. In 2025-26 full year, the sales volume was 5.84 lakh tons, 25% decline from the previous year.
Export Pipe Volume Growth
Export pipe volume grew by 7% in FY2025-26, partially offsetting the weakness in domestic market.
Consolidated EBITDA Margin
EBITDA including other income for the 4th Quarter FY26 stood to INR 99.3 crores with EBITDA margin of 6.5%. For the full year, EBITDA stood to INR 573.6 crores with EBITDA margin of 9.4%.
Standalone Gross Debt
Gross debt as on 31st March 2026 stood to INR 1,202 crores, which decreased by INR 598 crores from the previous year.
Demand Restoration Timeline
We are hopeful and expect some demand to restore by early 2nd Quarter of this financial year, with steady increment over 3 to 6 months.
FY27 Dispatch & EBITDA Margin Target
We are expecting a dispatch of around 7.4 lakh tons of pipes this financial year, with approximately 13%-14% consolidated EBITDA margin achievable.
T.I.S. Italy Growth & Margins
T.I.S. Italy's revenue is projected to double in the next four years (20% growth rate). For FY27, it should hit a 14%-15% growth rate, reaching around INR 450 crores with 14%-15% margins.
Paint Business Outlook
The industrial paint segment has a five-year roadmap to achieve INR 600 crores in revenue, with a positive impact on the bottom-line expected from FY2028-2029.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| JJM 2.0 Fund Disbursement & Project Execution | Cabinet approved, MOUs signed with states, INR 1,500 cr disbursed last year. Inquiries from customers have started coming in. | Steady increment of demand from Q2 FY27 onwards, new tenders being opened and allocated to EPC contractors. |
| Export Contribution to Revenue | 23% of Q4 FY26 revenue. | Decline to 17%-18% due to the impact of the Middle East crisis and expected pickup in the Indian market. |
| Consolidated EBITDA Margin | Q4 FY26: 6.5%; FY26: 9.4%. | Stabilization at 14%-16% (management's long-term expectation) as demand picks up and cost pass-through occurs with a lag. |
| T.I.S. Italy Revenue Growth | Calendar Year 25 revenue grew by 15% to EUR 41 million. | Achieving 14%-15% growth in FY27 (to ~INR 450 cr) and progress towards doubling revenue in four years. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
57NeutralSMA20 +5.3% / mo · RSI overbought · MACD +
Technical chart
ELECTCASTdaily · 1Y · AUTO+30.4%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 72. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~5.1% over last month) — short-term momentum positive.
- RSI(14) at 72 — overbought zone; risk of mean reversion.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 19% off 52W high · 39% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 29 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 29 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 19.9%.
- Cash flow contributes 10/10 to the score.
- Balance sheet contributes 10/15 to the score.
Main drags
- Fair-value margin of safety is negative at -627.6%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 3/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 35th percentile of the scored universe and 32nd percentile within Industrials. Main check: results consistency is weak at 15/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 4 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 32nd pctile, median 68 · Micro: 19th pctile, median 73
73 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 3.9%.
- ▸FCF yield is 19.9%.
- ▸10 years of positive FCF.
Trust risks
- ▸4 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 5%.
- ▸ROE is low at 3%.
- ▸ROCE trend is -6.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 32.50
- P/B
- 0.87
- EV/EBITDA
- 14.52
- Market Cap
- 5175.00Cr
Profitability
- ROE
- 3.04%
- ROCE
- 5.00%
- ROA
- 1.28%
- Dividend Y
- 1.08%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- -3.00%
- Revenue 3Y
- -7.00%
- EPS 3Y
- -18.00%
Balance Sheet
- Debt/Equity
- 0.26
- Interest Coverage
- 2.14×
- Altman Z
- 2.68
- Book Value
- 95.80
Cash Flow
- FCF Yield
- 19.86%
- FCF Positive Y
- 10/5
- OCF
- 1147.00 Cr
- EPS TTM
- 1.96
Shareholding
- Promoter Hold
- 50.14%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 54%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
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