ELECTCAST
Micro CapElectrosteel Castings Limited
Industrials
Electrosteel Castings Limited is one of India’s largest DI Pipes players, a pioneer in India, with a current capacity of 9 Lakh TPA. The company benefits from the structural water infrastructure boom, aligning with national development goals, and has a well-established global presence, exporting to 130+ countries.
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 31 Mar 2026
Bad · 0/100Rev -12% YoY · PAT -90% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,493 Cr | -12.2% | +1.4% |
| EBITDA | ₹62 Cr | -61.3% | +82.4% |
| Operating margin | 4.0% | -500 bps | +200 bps |
| PAT | ₹16 Cr | -90.5% | NDF |
| PAT margin | 1.1% | -881 bps | +256 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 & FY26 Consolidated Total Income declined by 12.2% YoY and 19.2% YoY respectively, primarily due to a slowdown in domestic demand. PAT for Q4FY26 plunged 90.5% YoY to INR 16 Cr, and FY26 PAT fell 77.2% YoY to INR 161 Cr.
The significant decline in both Q4 and FY26 consolidated revenue and profitability, driven by domestic demand slowdown, puts the investment thesis under stress. While long-term water infrastructure drivers remain strong, current execution and margin compression are concerning.
Jal Jeevan Mission (JJM 2.0)
Target to cover 100% rural households by Dec 2028, FY27 budget Rs. 67,670 Cr, total outlay enhanced to Rs. 8.69 lakh Cr.
AMRUT 2.0
Aims for 2.68 Cr water taps and 2.64 Cr sewerage/septage services in 4,800 towns, FY27 budget Rs. 8,000 Cr.
Interlinking of Rivers (ILR)
30 links identified, DPRs for 13 projects completed, Ken-Betwa project foundation laid Dec 2024 with Rs. 44,605 Cr estimated cost.
T.I.S. Service S.p.A. Acquisition
Acquired in Q2FY26 for €11.50MN, aiming to double CY25 revenue of €41MN by CY28, developing valve castings in India.
DI Pipe Capacity
Increased to 8,61,000 TPA in 2024 and 10,11,000 TPA in 2025.
Valve Castings Development
Already started development of Valve castings in India.
Government Water Infrastructure Focus
JJM 2.0, AMRUT 2.0, DRIP, NMCG, and ILR projects provide robust demand visibility.
Rising Urbanization
40% of India's population to live in urban areas by 2030, increasing demand for clean water and sewage.
Piped Irrigation
Modern method replacing traditional canal irrigation, supported by Union Budget allocations for PMKSY and PIP.
Domestic Demand Slowdown
Total Income declined due to slow down in Domestic demand resulting in lower sales volumes and hence impacted profitability.
Declining Per Capita Water Availability
India has 4% of world's fresh water, stores less than 1/10th of annual rainfall, leading to demand-supply imbalance.
Execution Risk for Government Projects
Visibility of funds released to states indicates execution-linked spending, implying potential delays or performance-based funding risks.
Working Capital Management
Working capital days increased to 188 in FY26 from 159 in FY25, indicating higher capital blockage.
Profitability Erosion
Significant decline in gross profit and EBITDA margins, both quarterly and annually, suggests pricing pressure or cost inefficiencies.
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.
Both YoY and QoQ comparisons are crucial. YoY highlights the severe annual decline and impact of domestic slowdown, while QoQ shows some sequential recovery in Q4FY26 for certain metrics, indicating potential stabilization.
Consolidated Gross Profit Margin
Q4FY26: 45.2% (down 621bps YoY); FY26: 46.3% (down 436bps YoY)
Consolidated EBITDA Margin
Q4FY26: 6.5% (down 491bps YoY); FY26: 9.4% (down 622bps YoY)
Working Capital Days
FY26: 188 days (vs 159 days in FY25)
Net Debt to Equity
FY26: 0.11 (vs 0.31 in FY25)
Gearing up for Water Infra Play
Company positions itself to benefit from structural water infrastructure growth opportunities.
Strategic Integrated Capacity
Utilizes integrated capacity for cost advantage and market leadership in domestic and export markets.
Valve Manufacturing Extension
Acquisition of T.I.S. Service S.p.A. is a strategic extension, with a new patented product (FR line) expected to drive strong growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Domestic Demand Recovery | Slowdown in domestic demand. | Improvement in domestic sales volumes and order inflows. |
| Margin Trends | Consolidated EBITDA margin 9.4% in FY26 (down 622bps YoY). | Stabilization and recovery of gross and EBITDA margins. |
| Working Capital Days | 188 days in FY26. | Reduction in working capital days and improved cash conversion cycle. |
| T.I.S. Revenue Growth | CY25 revenue €41MN. | Progress towards doubling T.I.S. revenue by CY28 and successful integration. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 +7.5% / mo
Technical chart
ELECTCASTdaily · 1Y-11.9%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 37.
- SMA20 falling (~8.2% over last month) — short-term momentum negative.
- RSI(14) at 37 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 24% off 52W high · 22% 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, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 22.3%.
- 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 -318.0%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Growth is weaker at 4/25; 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
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 27th percentile of the scored universe and 24th percentile within Industrials. Main check: results consistency is weak at 5/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 6 recent quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 24th pctile, median 68 · Micro: 14th pctile, median 71
0 documents indexed, 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 20.9%.
- ▸10 years of positive FCF.
Trust risks
- ▸6 recent quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 5.2%.
- ▸ROE is low at 3.2%.
- ▸ROCE trend is -6.1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 23.90
- P/B
- 0.76
- EV/EBITDA
- 11.44
- Market Cap
- 4527.00Cr
Profitability
- ROE
- 3.24%
- ROCE
- 5.21%
- ROA
- 1.70%
- Dividend Y
- 1.91%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- -2.00%
- Revenue 3Y
- -7.00%
- EPS 3Y
- -16.00%
Balance Sheet
- Debt/Equity
- 0.26
- Interest Coverage
- 2.49×
- Altman Z
- 2.61
- Book Value
- 95.80
Cash Flow
- FCF Yield
- 22.33%
- FCF Positive Y
- 10/5
- OCF
- 1147.00 Cr
- EPS TTM
- 2.61
Shareholding
- Promoter Hold
- 50.14%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 17%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.