Swastika Castal Limited — Call Transcript 2026

May 27, 2026

S&L

The Aluminium Casting People

SWASTIKA CASTAL LTD.

Corporate Office: 306, Tower A, Mayfair Corporate Park, Behind Delhi Public School, Kalali,

Vadodara, Gujarat - 390012.

Date: 27-05-2026

To,

The Dy. Manager

The Department of Corporate Services

BSE Limited, 1st Floor, Rotunda Bldg.,

Phiroze Jeejeebhoy Towers,

Dalal Street, Fort, Mumbai – 400 001.

Scrip Code: 544452

Dear Sir,

Subject: Transcript of the H2 FY26 Earnings Conference Call held on 21st May, 2026

With reference to our letter dated 18th May, 2026 in respect of Earnings Conference Call held on Thursday, the 21st May, 2026, please find enclosed herewith the Transcript of discussion held during the said Earnings Conference Call.

The aforesaid information is also available on the Company’s website on below mentioned link.

Link : https://sclcasting.com/compliance/

Kindly take the same on record.

Thanking you,

Yours faithfully,

For Swastika Castal Ltd.

MUKESH KHANNA
Digitally signed by
MUKESH KHANNA
Date: 2026.05.27
14:45:57 +05'30'

Mukesh Kumar Khanna
Company Secretary & Compliance Officer
(M. No. A2437)

Encl: As above

Works / Factory:

Block No. 535, Vemardi Road,

Vill: Kandari, Tal.: Karjan.

Vadodara-391 210. India.

CIN NO.: U27101WB1996 PLC 079995 GSTIN

: 24AADCS9451P1ZR

email: scl@aluminiumcasting.net

Website: https://www.aluminiumcasting.net,

https://sclcasting.com

Register Office:

117-A, Chittaranjan Avenue,

Kolkata-700 073. India.

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"Swastika Castal Limited

H2 FY'26 Results Conference Call"

May 21, 2026

MANAGEMENT: MR. VARUN SHARDA – MANAGING DIRECTOR – SWASTIKA CASTAL LIMITED

MODERATOR: Ms. SAKHI PANJIYARA – KIRIN ADVISORS PRIVATE LIMITED

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Swastika Castal Limited

May 21, 2026

Moderator:

Ladies and gentlemen, good day and welcome to the H2 FY'26 Results Conference Call of Swastika Castal Limited, hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone.

This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.

I now hand the conference over to Ms. Sakhi Panjiyara from Kirin Advisors Private Limited. Thank you and over to you, ma'am.

Sakhi Panjiyara:

Good day everyone. On behalf of Kirin Advisors, I welcome you all to the H2 and 12 months FY'26 Conference Call of Swastika Castal Limited. From the management team, we have today Mr. Varun Sharda, Managing Director. Now I hand over the call to Mr. Varun Sharda for opening remarks. Over to you, sir.

Varun Sharda:

Thank you. Good afternoon everyone. I am Varun Sharda, Managing Director of Swastika Castal Limited, and I thank you all for joining us today. This is a special moment for us, as this is our first earnings call since our listing on the BSE SME platform.

On behalf of the entire Swastika Castal team, I sincerely appreciate your time and interest in our journey. For those who are new to the company, who have joined today only, Swastika Castal Limited is a 30-year-old manufacturing company of high-precision aluminum castings, serving industries where strength, accuracy, and reliability are very critical.

With our integrated manufacturing facility in Karjan, Vadodara, we are able to deliver full machined ready-to-use components with consistent quality and on-time delivery to our customers.

In regards of this call, Financial Year '26 has been a year of steady progress and an important milestone for us. We have seen encouraging momentum in our business, supported by our -- supported by improving demand across key sectors such as power transmission, electrical equipment, industrial applications, etcetera.

These sectors continue to benefit from strong structural tailwinds, including increasing investments in infrastructure, rising electrification, and renewable energy, and other high-quality products.

So, from a financial standpoint, we are pleased with our growth trajectory during the year. For FY'26, our total income grew by $19.50\%$ to INR36.19 crores, reflecting steady business momentum. EBITDA stood at INR6.22 crores, and our profit after tax was at INR3.28.

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May 21, 2026

Operationally, we continue to strengthen our manufacturing facility, which gives us better control over quality, delivery timelines, and cost structure. This has helped us deepen relationships with our existing customers and also expanded our reach into new markets.

Our export presence in regions such as Europe, Mexico, U.S. is gradually improving, and we see this as an important growth-driven -- growth-driving forward. Our recent listing has given us a stronger platform for our next phase of growth. It has improved our visibility, strengthened our governance framework, and positioned us as large opportunities with greater confidence.

We remain focused on building a scalable and sustainable business by investing in capabilities, expanding our market presence, and aligning with sector that offer long-term growth potentials.

Overall, we have entered the new financial year this year with confidence and positivity. The demand environment remains supportive, our capability continues to strengthen, and our team is fully aligned towards delivering consistent and sustainable growth.

We remain committed to create long-term value for all our stakeholders and look forward to sharing our progress with you all in the coming time. Thank you once again for your continued support.

We are open to ask any questions if you want to.

Moderator:
Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Bhaskar Chatterjee from SMIFS Limited. Please go ahead.

Bhaskar Chatterjee:
Hello?

Moderator:
Yes, sir, you are audible.

Bhaskar Chatterjee:
Yeah. So, sir, first of all, congratulations on your BSE listing debut year. I have two questions – Yes sir. So, first of all, revenue grew during FY’26. So, what were the key growth drivers, sir?

Varun Sharda:
Yeah. So, for FY’26 was a positive year for us in terms of business growth, that increased revenue was mainly driven by higher business volume and strong relationship with our customers. And we focused on execution also, timely delivery, improving our operational capabilities, which helped us to achieve it.

Also, I would like to add that we made investments in strengthening our infrastructure and expanding our capabilities also. These also helped us grow, and we have taken a long-term perspective and have helped us -- and have built a very strong platform for future growth.

We also remain focused on improving our internal efficiency and maintaining operational discipline across the whole organization. Overall, I believe that the growth achieved during ‘26 reflects the strength of the business and gives us confidence as we move into the next phase of growth. The year has already started and looking forward for this.

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Bhaskar Chatterjee:

Yeah, so that's great. I have just one another question. So, is the growth mainly driven by volume increase, realization increase, or new customer addition?

Varun Sharda:

Okay. So, the growth was because of volume, which supported from strong customer demand, improving our executions also, execution capabilities also. The pricing impact was relatively very, very, very limited.

Bhaskar Chatterjee:

Okay, sir. Thank you. I will be joining the back in the queue.

Moderator:

Thank you. The next question is from the line of Mahesh from VY Cap. Please go ahead.

Mahesh:

Hello?

Varun Sharda:

Hi, sir.

Mahesh:

Yeah, yeah. Thank you for the opportunity. So, I just wanted to ask, like, our revenue grew by approximately 17%, but however, operating cash flow turned negative. So, could you help us understand the key drivers behind this?

Varun Sharda:

Yes. So, I'll give you a full detailed thing because this was all intentional. So, while the company delivered healthy revenue last year, our operating cash flow was impacted mainly due to higher working capital during the year. We look at this in a context of a company growth phase. This is a strategic, very strategic decision during the year that we have taken and looking at the external business environment.

One of the most important factors during the year was uncertainty in the global environment, including geopolitical situation and war-related disruptions. And that affected supply chain, availability of raw material, fluctuation in price, but all uncertainty in delivery schedules.

So, in order to ensure uninterrupted production and avoid any impact on our customer commitments, because that is what we are emphasizing on because of our relationships, good relationship with our customer. We took a very proactive approach with our vendor ecosystem. We worked closely with them and supported them through faster and advanced payments to secure raw material availability, lock pricing wherever is possible, and ensure timely deliveries of raw material to us and in turn to our customer.

This, the whole thing was a conscious business decision because our priority was to maintain continuity in operations and avoid situation where production schedules could be affected due to supply shortages. Protecting customer deliveries and maintaining reliability was our main focus. Since it is not about short-term gain, it is about a long-term plan for us.

Another factor during the year was that we remained focused on maintaining strategic inventory levels, given the uncertainty again around raw material supply, pricing, maintaining adequate product inventory to help reduce risk of production disruption and support -- and again to -- for the customers only. So, we made -- we procured as well as made more stock than it was required.

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Also, after the IPO and the expansion initiative that we have taken, the company entered into a very important transitional phase, I would say. The transitional phase is like it is the transition phase was like we have commissioned all our machinery in the month of March, the expansion of capital -- the capex. And we wanted to keep inventory so that that also continues to feed our new machines and everything.

And we also are expecting that the supply chain condition will stabilize, customer collections also will normalize. There was a bit of customer collection issue, a bit, I would say, there was some delays because of March ending.

In March, what happens is the local customers just don't give -- release payments. And that also have stabilized in April and May. And then the expansion also is fed with these inventories. So, that is a very conscious thing that we took.

And however, I would say that we are already focused on improving the cash conversion. We have taken multiple initiatives also in the company, improving the collection efficiency, optimizing inventory management also, we are already working on it, and better planning, I would say. Plus, with this, we have also reduced our supplier paying cycles also, normalized the paying cycles also.

Mahesh:
Okay. Okay. Got it. Thank you for the detailed answer. Also wanted to know, like our capital expenditure has increased significantly during this. So, like, can you tell me the expected timeline for this to start contributing meaningfully to revenue and returns?

Varun Sharda:
So, our capital expenditure during last year was very strategic investment aimed at strengthening our manufacturing capabilities and supporting future growth requirements. Now things are operational, and we expect benefits to start becoming very visible in coming future soon through -- and also through improved capacity, the book that we have booked, so higher business volumes are there, business operation efficiencies and stronger operation leverage also we'll get from this. So, some benefits will start reflecting in near term, while the large financial impact is expected to be in the medium term, but some benefits you will be able to see it in near term.

Mahesh:
Okay. Got it. Thank you for answering.

Moderator:
Thank you. The next question is from the line of Dhanraj Solani from Kuber Advisors. Please go ahead. Mr. Dhanraj Solani?

Dhanraj Solani:
Hello? Am I audible?

Moderator:
Yes, you are.

Dhanraj Solani:
So, as I could see the current margins, so I just wanted to know what would be our sustainable margins over the period?

Varun Sharda:
So, hi. Looking at the current scenario, we believe our margins are sustainable and also improve as we achieve greater scale in the business. The volumes increase and capacity

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utilization improves as it is done. We expect to benefit from operating leverage and better absorption of fixed cost. It is like the normal thing. And at the same time, we continue to focus on operational efficiencies, cost optimization, and improving productivity across the organization.

So this all thing, plus our vendors and the way we are working with them currently, that everything will help us in bettering -- might help us in bettering it.

Dhanraj Solani:
Okay. And considering the new expansion, so what's revenue would generate out of it?

Varun Sharda:
From the new expansion, this -- the revenue growth for this year will be -- this year, financial Year '27 will be our full year where we will have the benefit of enhanced capacity available and throughout the year this provides us a very strong platform for growth and improved ability to cater increasing customer demands, customer requirements.

As I said before, the tailwind is with us for the business, and this will help us. Looking at the current business environment, the opportunities available, we remain very optimistic about the year ahead and expected -- expect growth momentum to continue. While we would prefer not to provide a specific guidance at this stage, we believe FY'27 has the potential to deliver strong growth -- stronger growth in comparison to '26. So, our focus is on achieving sustainable and profitable growth while we also improve our official -- operational efficiency and we will surely benefit from the recent expansion.

Dhanraj Solani:
Okay. Okay, sir. Thank you. That's all from my side.

Moderator:
Thank you. The next question is from the line of Mr. Raj Shah from Shah Ventures. Please go ahead.

Raj Shah:
Yeah. Hello, sir. Good afternoon. Sir, can margins improve further from current levels?

Varun Sharda:
Market means, sir? Can you please, like, elaborate? You're talking about the opportunities of business or growth of revenue?

Raj Shah:
Yeah, right. Like, margins can improve?

Varun Sharda:
Okay, so margins. Sorry, sorry, I heard market. Sorry, I'm mistaken. So, we believe the margins, as I said, we believe the margins will should improve in coming time because of the focus that we are giving on operational efficiency, as well as -- as I said our expansion is already finished and we expect additional capacity to support higher business volumes and improve our ability to cater the increased customer requirement.

And moreover, we will have -- as we achieve the greater scale, we expect to benefit from operating leverage, which also improved absorption of fixed cost and better operational efficiencies as I said.

So, in this scenario, we see good business in front of us and we also continue to focus on productivity improvement and cost optimization initiatives also in the business. So -- but the

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margins are influenced by factors such as raw material price, market conditions and this, but in the current scenario as I said, we are very, very optimistic about it.

Raj Shah:
Okay. That's great. And sir, also I want to know that what is the expected revenue growth guidance for FY'27?

Varun Sharda:
So, it is very difficult to give you in figures, but as I said, it will be -- we are projecting better than the last year growth also. And with our business -- with our customers, so I would also like to mention our customers such as we have good customers such as Hitachi, ABB, Siemens, GE, Toshiba. So, they are also having good orders and the same will translate to us. We are expanding in other with our -- we are also adding in new customers. So that is also help -- that will also help us in improving our scale of business.

Raj Shah:
Okay, sir. Yeah, that's all from my side, sir. Thank you.

Moderator:
Thank you. The next question is from Mr. Vinod Shah as an individual investor. Please go ahead.

Vinod Shah:
Yeah, good afternoon, sir.

Varun Sharda:
Yes, sir. Good afternoon.

Vinod Shah:
On export front, do you see more export opportunities?

Varun Sharda:
Yes, we continue to see opportunities both in existing market and we are expanding our customer base as I said. On the export side, we believe that there is a meaningful potential going forward and we are actively exploring opportunities. We are in discussion with few customers. I will take this moment to tell you that we -- last year we had added two new customer in export front. One is QAG, it is an Australian-based multinational, and one is Trench from Europe. It is also a multinational company, it's a big corporate.

And so at the same time, the customer addition remains in our focus area. We'll be adding more, along with strengthening relationship with our existing customers also. So, what is happening is, for example, we are approved vendor for Hitachi and so Hitachi has multiple factories.

Now last year we have got orders from one of their other factory where we were not supplying. That also we have added. Our strategy is also to build long-term and sustainable relationship rather than focusing on short-term business gains. And all these corporates that we are talking about, there are few more in line that we are in discussion. And we are sure that export potential -- exports will be rising further. So, last year it has raised and current year we are working towards it so that it raises further.

Vinod Shah:
Okay, okay, sir. And sir, how are you dealing with rise in raw material prices?

Varun Sharda:
So, rising raw material pricing, we have a very set norms with all our customers. We have this -- clause with them, wherein the price variation, all the raw material prices that are increasing

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is price passed on to them on monthly basis currently. And so the impact is not high on either side. And similarly, when it will go down, we will again pass on that same thing to them.

So, we are very clear with them. And not only raw material, we also have price variation clause for the fuels also that we use. So, we have price variation clause for that also because as you know crude is also increasing, the fuels are also increasing. We have price variation clause with maximum of our customer.

Vinod Shah:
Okay, okay. Great, sir. I will join back the queue. Thank you.

Moderator:
Thank you. The next question is from Mr. Bhaskar Chatterjee from SMIFS Limited. Please go ahead.

Bhaskar Chatterjee:
Sir, I have some questions. So, first of all, I want to ask that are you first generation or second in line in business?

Varun Sharda:
So, no, my father started this business and I am the second generation in the business, but I am working in this factory since last I think now 18 years.

Bhaskar Chatterjee:
Okay. And which all the industry that we serve?

Varun Sharda:
Which one?

Bhaskar Chatterjee:
Which all the industry which serve?

Varun Sharda:
So, industry served -- the industries that we are serving is mainly into power, Infra Power capital equipment, and then railways, then oil and gases, fire fighting equipments. It is -- but maximum goes to power industry, which has very, very strong potential at this moment. And our -- as I said, our customers, I name my customers also, they are all A-grade customers and they are growing very fast and they also want us to grow fast.

Bhaskar Chatterjee:
Okay. And any new client that we have added this financial year?

Varun Sharda:
Yeah, last financial year we have added two clients. One is Trench as I said and QAG. And more clients, like one or two more, but these are two prominent names wherein you can -- you will get it.

Bhaskar Chatterjee:
Okay, okay. And what are your outlook towards this industry?

Varun Sharda:
So, my outlook towards this industry is like I think all my current customers are booked for the next at least five years. This is what I have been told. And plus other we are also trying to enter into other sectors wherein we are adding more portfolio in railways, in other places. We have also active started actively participating in government tenders for at GeM portal for some components in defense and other products. So, that we have also started participating in.

Bhaskar Chatterjee:
Okay, sir. Thank you for your answers and all the best. I will reach out to you for any further meeting.

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Swastika Castal Limited
May 21, 2026

Varun Sharda:
Sure, sure. Sure, sir.

Moderator:
Thank you. As there are no further questions, I now hand the conference over to Ms. Sakhi Panjiyara from Kirin Advisors Private Limited. Thank you and over to you, ma'am.

Sakhi Panjiyara:
Thank you everyone for joining the conference call of Swastika Castal Limited. If you have any queries, you can write to us at research@kirinadvisors.com. Once again, thank you everyone for joining the conference. Good day.

Moderator:
Thank you. On behalf of Kirin Advisors Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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