Alicon Castalloy Ltd Company Fundamental Analysis

ALICON Alicon Castalloy Ltd is one of India's leading integrated manufacturers of aluminium castings and precision-engineered components. Its products are used in passenger vehicles, commercial vehicles, two-wheelers and industrial applications. Q2 FY27 performance: Consolidated revenue from operations increased approximately 51.8% YoY to ₹649.84 crore, compared with ₹428.18 crore in Q2 FY26. Net profit increased 26.7% to ₹17.6 crore, while profit before tax rose 25.5% to ₹23.87 crore. Sequentially, revenue grew 12.4% and net profit increased 53.8%. The concern is that profit growth is considerably slower than revenue growth. Consolidated EBITDA margin declined to approximately 9.7% from 12.8% a year earlier, indicating pressure on operating profitability despite strong sales growth. For H1 FY27, revenue from operations reached approximately ₹1,187.6 crore, up 51.7% YoY. However, working-capital requirements are worth monitoring: receivables increased by approximately ₹88 crore, and working capital absorbed around ₹73 crore during the half-year. Net debt stood at approximately ₹322 crore as of September 2026. At approximately ₹837 per share on November 12, 2026, the market capitalisation was around ₹1,380 crore and the trailing P/E was approximately 38–40x. ROE is around 5.7–6.2%, ROCE approximately 10%, and debt-to-equity around 0.52. Alicon operates in an attractive segment of the auto-ancillary industry, with opportunities from vehicle lightweighting, EV adoption and exports. Its revenue growth is impressive, but the latest results reveal a clear gap between sales growth and profit growth. Margin compression, rising working-capital requirements and moderate return ratios are the main concerns.