Stock Performance and Trading Context
Alicon Castalloy Limited (NSE: ALICON) shares were trading lower intraday after the earnings announcement on February 13. The stock slipped about 1.6% to ₹1,020 on the BSE in early trade. The counter has moved in a 52-week range of ₹780–₹1,180 and has seen range-bound movement in recent weeks, reflecting mixed sentiment across the auto-ancillary space amid global demand uncertainty.
Q3 FY26 Earnings Overview
Alicon Castalloy reported higher profitability for the quarter ended December 31, 2025, supported by operating leverage and a favourable base. Total income rose 10% year-on-year to ₹430.8 crore, compared with ₹392.9 crore in Q3 FY25. EBITDA increased 34% YoY to ₹47.17 crore, while EBITDA margin expanded to 10.9% from 8.9% a year earlier. Profit before tax (pre-exceptional) climbed to ₹10.6 crore from ₹1.0 crore. Profit after tax surged 322% YoY to ₹3.3 crore, versus ₹0.8 crore last year. Sequentially, revenue rose 0.4%, while EBITDA declined due to product-mix changes, input-cost volatility, and transition-related expenses.
Margins and Cost Structure
Gross profit stood at ₹203.0 crore with a 47.2% margin, up 138 basis points YoY but lower quarter-on-quarter. Finance costs fell 13% YoY, while depreciation increased 17%, weighing on net earnings.
Nine-Month Performance
For 9M FY26:
- Total income: ₹1,278.4 crore, down 2% YoY
- EBITDA: ₹152.5 crore, up 2% YoY
- PBT (pre-exceptional): ₹44.8 crore, down 9%
- PAT: ₹26.6 crore, down 27% YoY
Profitability was impacted by higher depreciation and one-time labour code implementation costs.
Operating Drivers
Domestic business remained resilient, while global operations faced supply-chain constraints, semiconductor shortages, and rare-earth material restrictions affecting OEM production schedules. The company secured four new parts during the quarter and operated plants at roughly 75% utilization.
Management Commentary
Management said the quarter reflected steady operational execution despite a seasonally softer global environment and ongoing external headwinds. The company continues to focus on cost optimisation, diversification, and strategic initiatives to support long-term growth.
Analyst Actions
No analyst rating changes or price-target revisions were disclosed with the results.