GLOBAL ECONOMY
The global economy remained resilient in 2025 despite operating in a challenging macroeconomic environment characterised by trade restrictions, policy uncertainty and persistent geopolitical tensions. Ongoing conflicts in Eastern Europe and the Middle East, including the Russia-Ukraine war, continued to disrupt global supply chains, energy markets and investor confidence, resulting in periodic volatility in commodity prices and financial markets. Rising tariffs and changing trade policies also weighed on global trade and cross-border investment.
Real GDP Growth
| Region | 2025 | 2026 (P) | 2027 (P) |
| Global | 3.4 | 3.1 | 3.2 |
| Advanced Economies | 1.9 | 1.8 | 1.7 |
| Emerging Market and Developing Economies | 4.4 | 3.9 | 4.2 |
*P stands for Projected [Source: IMF World Economic Outlook April 2026]
Notwithstanding these challenges, global economic activity remained supported by stable labour markets, continued fiscal spending and growing investments in technology, particularly artificial intelligence (AI). Supply chain diversification, improved energy security and the gradual realignment of global trade networks also contributed to economic resilience. As a result, global GDP growth improved to 3.4% in 2025, compared with 3.3% in 2024.
Advanced economies recorded growth of 1.9%, supported by resilient labour markets, easing financial conditions and improving domestic demand. Emerging market and developing economies (EMDEs) expanded by 4.4%, driven by resilient consumption, stronger manufacturing and services activity, and sustained infrastructure investments across major Asian economies.
Global headline inflation moderated to 4.1% in 2025, reflecting easing supply-side constraints and the cumulative impact of earlier monetary policy tightening. However, inflation trends remained uneven across regions, with price pressures continuing above target in the United States while remaining relatively contained in several other major economies.
Outlook
As 2026 unfolds, the global economy faces renewed uncertainty amid escalating geopolitical tensions in West Asia and disruptions across key energy transit routes. Concerns over the supply of oil, liquefied natural gas (LNG) and fertilisers have increased risks to energy security, inflation and global supply chains. Consequently, global economic growth is projected to moderate to 3.1% in 2026, before recovering to 3.2% in 2027. Continued diplomatic efforts, greater energy diversification and stronger regional cooperation are expected to gradually ease these pressures, supporting supply chain resilience, moderating inflation and strengthening the global recovery.
Advanced economies are projected to grow by 1.8% in 2026, while emerging market and developing economies (EMDEs) are expected to expand by 3.9%, supported by resilient domestic demand and sustained infrastructure investment. Central banks are expected to maintain a cautious policy stance, while governments continue to prioritise fiscal discipline, targeted policy measures and supply chain resilience in response to the evolving global economic environment.
[Source: IMF World Economic Outlook April 2026]
INDIAN ECONOMY
India continued to be among the fastest-growing major economies during FY 2025-26, supported by strong domestic consumption, sustained public infrastructure spending and ongoing structural reforms. According to the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), the countrys real GDP expanded by 7.7%, while real Gross Value Added (GVA) rose 7.9% to ?294.91 Lakhs Crore. Economic growth was led by the services sector, with manufacturing also registering healthy expansion, aided by production-linked incentives and higher capital expenditure.
India retained its position as the worlds sixth-largest economy in nominal GDP terms. Growth continued to be driven by robust private consumption and investment, while reforms such as the Goods and Services Tax (GST), Production Linked Incentive (PLI) schemes and Make in India 2.0 strengthened manufacturing competitiveness, formalisation and integration with global supply chains. Industrial activity remained resilient, with the HSBC India Manufacturing PMI at 55.0 in May 2026, indicating continued expansion, while the Index of Industrial Production (IIP) grew 4.9% in April 2026, led by 6.2% growth in the manufacturing sector.
During the year, geopolitical developments in West Asia and disruptions to global trade routes created challenges for energy markets and international logistics. Given its dependence on imported crude oil and several intermediate goods, India remained exposed to commodity price volatility, higher energy costs and supply chain disruptions. However, increasing domestic manufacturing, diversified sourcing strategies, and stronger trade engagement with emerging markets helped improve the economys resilience.
Government policy continued to support long-term economic growth. The PLI Scheme attracted cumulative investments of around ?2.16 Lakhs Crore across 14 priority sectors, reinforcing the objectives of Atmanirbhar Bharat, promoting domestic manufacturing and supporting Indias long-term aspiration of becoming a US $5 trillion economy.
Macroeconomic stability also improved during the year. Inflationary pressures eased, prompting the Reserve Bank of India (RBI) to lower its FY 2025-26 CPI inflation forecast to 2.1%, while the repo rate was cumulatively reduced to 5.25% to support credit growth and investment activity. Looking ahead, Indias exports are expected to approach US $1 trillion in FY 2026-27 supported by expanding manufacturing capacity, improving export competitiveness and the implementation of new trade agreements.
Indias GDP Growth
| Year | GDP Growth |
| FY 23 | 7.2% |
| FY 24 | 8.2% |
| FY 25 | 7.1% |
| FY 26 | 7.7% |
| FY 27 | 6.9% (P) |
*P stands for Projected (Source: RBI, Fortuneindia, RBI Annual report 2025-2026, Tradingeconomics, PIB)
Outlook
Looking ahead, Indias economic growth is expected to remain robust despite a moderation in the pace of expansion. According to the projections of the RBI, real GDP growth is expected to ease from an estimated 7.6% in 2025 to 6.9% in 2026. Economic activity is expected to be supported by improving household consumption, sustained public capital expenditure, the benefits of recent tax reforms and a lower interest rate environment. Although the external environment remains uncertain and prolonged geopolitical tensions in West Asia could pose downside risks, Indias strong macroeconomic fundamentals are expected to support growth during FY 2026-27.
The Union Budget FY 2026-27 reaffirmed the Governments focus on infrastructure-led growth by increasing the capital expenditure (capex) outlay to a record ?12.2 Lakhs Crore, representing an increase of nearly 9% over the previous years estimate of ?11.2 Lakhs Crore. The enhanced allocation is aimed at sustaining economic momentum and advancing the Governments Viksit Bharat vision through continued investments in roads, railways, ports, airports, power transmission and urban infrastructure.
INDUSTRIAL OVERVIEW
Metal Casting Market
Metal casting remains an integral part of the global manufacturing value chain, supplying precision-engineered components to industries such as automotive, industrial machinery, construction, aerospace, defence and energy. Demand for metal castings continues to be supported by industrial production, infrastructure development and the growing need for lightweight, high-performance components. The global metal casting market was valued at US $290.2 billion in 2025 and is projected to reach US $408.3 billion by 2033, registering a CAGR of 4.3% during 2026-2033. Asia Pacific accounted for 56.2% of the global market in 2025, reflecting the regions strong manufacturing base and high concentration of automotive and engineering production. The automotive segment accounted for 41.0% of global demand, making it the largest end-use industry for metal castings, while iron remained the largest material segment with a 40.0% share.
Market Size
CAGR 2026-2033 ? 4.3%
| Year | Market Size |
| 2021 | $242.2B |
| 2025 | $290.2B |
| 2033 | $408.3B |
The industry continues to evolve in line with changing mobility and manufacturing requirements. Vehicle manufacturers are increasing the use of aluminium castings to reduce vehicle weight, improve fuel efficiency and enhance the driving range of electric vehicles. At the same time, foundries are investing in automation, digital manufacturing, simulation-based design and energy-efficient production processes to improve productivity and product quality. The ongoing diversification of global supply chains is also creating opportunities for manufacturing destinations with established engineering capabilities and competitive production costs, including India.
India has emerged as one of the worlds leading metal casting hubs, owing to a strong manufacturing base, a well-established automotive ecosystem and growing engineering capabilities. The metal casting industry supplies critical components to sectors such as automotive, commercial vehicles, railways, industrial machinery, construction equipment, defence, mining, agriculture and renewable energy. The increasing focus on precision engineering, localisation and lightweight materials is further expanding the role of cast components in advanced manufacturing.
According to the World Foundry Organisation (WFO), India is the second-largest producer of castings globally. The industry comprises more than 5,000 foundries, with nearly 85% operating as micro, small and medium enterprises (MSMEs). These foundries manufacture a wide range of ferrous and non-ferrous castings and support the countrys engineering and automotive value chains while generating employment for over 2 million people.
The industry is witnessing steady growth, supported by rising domestic manufacturing and export demand. The Indian metal casting market was valued at US $26.8 billion in 2025 and is projected to reach US $40.2 billion by 2033, growing at a CAGR of 5.1% during 2026-2033. India accounted for 9.2% of the global metal casting market in 2025, highlighting its growing role in the global manufacturing landscape. Notably, aluminium emerged as the largest material segment in 2025 and is expected to be the fastest-growing segment during the forecast period, reflecting increasing demand for lightweight components across automotive and industrial applications.
The Indian foundry industry is expected to maintain a strong growth trajectory over the medium term. The market was valued at US $26.28 billion in 2025 and is estimated to reach US $46.72 billion by 2031, registering a CAGR of 10.22% during 2026-2031. The growth is being driven by rising localisation of automotive components, increasing investments in electric vehicle manufacturing, import substitution, higher infrastructure spending and expanding industrial production. The market is also witnessing a shift towards long-term supply programmes that place greater emphasis on product quality, metallurgical consistency and lower carbon emissions.
India Foundry Market Size in US $ Billion
| Year | Market Size |
| 2025 | $26.28B |
| 2026 | $28.72B |
| 2031 | $46.72B |
CAGR: 10.22%
The automotive industry remains the largest end-user of cast components in India. According to the Society of Indian Automobile Manufacturers (SIAM), the country produced 34.71 million vehicles during FY 2025-26, creating demand for cast components across passenger vehicles, commercial vehicles, two-wheelers and three-wheelers. The transition towards electric mobility is also changing product requirements. Vehicle manufacturers are increasing the use of aluminium castings for battery housings, motor casings, transmission systems and structural components to reduce vehicle weight and improve energy efficiency.
Government initiatives continue to support the long-term development of the industry. Programmes such as Make in India, the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components, the PM Gati Shakti National Master Plan, and sustained public investment in infrastructure are strengthening domestic manufacturing capabilities and encouraging localisation of high-value components. These initiatives, together with increasing private sector investments, are supporting capacity expansion, technology adoption and higher value addition across the engineering sector.
The industry is also undergoing rapid technological transformation. Foundries are investing in automated moulding lines, robotic handling systems, simulation-driven product development, digital quality control and energy-efficient melting technologies to improve productivity and meet global quality standards. At the same time, the growing adoption of recycled metals and resource-efficient manufacturing practices is supporting the industrys transition towards more sustainable production.
India is also strengthening its position in global supply chains. Competitive manufacturing costs, a skilled workforce, improving machining capabilities and a mature automotive supplier ecosystem have enhanced the countrys attractiveness as a sourcing destination. As global manufacturers continue to diversify their supply chains under the China+1 strategy, Indian foundries are well placed to increase their participation in global automotive and industrial value chains.
Overall, the Indian metal casting and foundry industry is expected to benefit from sustained growth in automotive production, increasing adoption of lightweight aluminium components, expanding industrial manufacturing and continued policy support. Ongoing investments in technology, automation and sustainability are expected to improve the industrys competitiveness and support its long-term growth.
(Source: Grandviewresearch, Mordorintelligence, SIAM, Grandviewresearch)
AUTOMOBILE AND AUTO COMPONENT INDUSTRY
Indias automobile industry recorded its highest-ever annual sales across all major vehicle categories during FY 2025-26, supported by strong consumer demand, favourable policy measures, lower financing costs, and improving economic activity. According to the latest data released by the Society of Indian Automobile Manufacturers, the industry witnessed broad-based growth across passenger vehicles, commercial vehicles, two-wheelers, and three-wheelers.
Passenger vehicle sales reached a record 46.43 Lakhs during FY 2025-26, registering growth of 7.9% over the previous year. The segment benefited from improved affordability following GST reforms, personal income tax relief measures, and multiple repo rate cuts by the Reserve Bank of India (RBI), which reduced financing costs for consumers. Electric passenger vehicle registrations also increased significantly during the year, contributing to overall segment growth. Passenger vehicle exports reached an all-time high of approximately 9.05 Lakh units, supported by steady demand from the Middle East, Africa, and Latin America.
The two-wheeler segment recorded its highest-ever annual sales of 217.1 Lakhs units in FY 2025-26, reflecting growth of 10.7% over the previous year and surpassing the earlier peak achieved in FY 2018-19. Growth was driven by stronger urban demand, improved financing availability, and increasing adoption of electric two-wheelers. Exports of two-wheelers also reached a record 51.8 Lakhs units during the year, registering growth of 23.4% supported by wider global acceptance of Indian brands and competitive pricing.
The commercial vehicle segment posted its highest-ever sales of 10.8 Lakhs units during FY 2025-26, registering growth of 12.6% compared to FY 2024-25. Increased infrastructure activity, higher capital expenditure, stronger fleet replacement demand, and improved logistics movement supported segment growth. Lower borrowing costs following repo rate reductions also encouraged vehicle purchases by transport operators and fleet owners. Commercial vehicle exports increased by 17.4% during the year to around 1 Lakhs units.
Three-wheeler sales also reached a record level of 8.4 Lakhs units in FY 2025-26, growing by 12.8% year-on-year. Demand was supported by increasing urban mobility requirements, growth in e-commerce logistics, and rising penetration of electric autorickshaws. Expansion of permit issuance for internal combustion engine (ICE) three-wheelers in select states also contributed positively to industry growth.
Overall automobile production in India stood at 28.3 Lakhs units during FY 2025-26, reflecting strong manufacturing activity and sustained domestic demand. The industry also benefited from improving macroeconomic conditions, rising consumer confidence, and increasing adoption of electric mobility solutions.
The increasing availability of vehicle financing remained an important growth driver, supporting the industrys expansion. With softer interest rates, enhanced loan-to-value norms, and wider outreach of NBFCs across rural and semi-urban geographies, affordability has improved. Additionally, enhancements in borrower credit profiles facilitated the participation of the first-time buyer group, contributing to stable sectoral growth.
Key manufacturers like Maruti Suzuki, Tata Motors, Hero MotoCorp, and TVS Motor are leading production and sales growth. The industrys export potential is robust, with vehicle exports rising significantly, driven by markets in Asia, Africa, and Latin America. Challenges remain, including capacity utilisation and input cost inflation, but the overall outlook remains optimistic with continued investment in technology, infrastructure, and EV transition.
Domestic Sales Trends
| Category | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
| Passenger Vehicles | 27,11,457 | 30,69,523 | 38,90,114 | 42,18,750 | 43,01,848 | 46,43,439 |
| Commercial Vehicles | 5,68,559 | 7,16,566 | 9,62,468 | 9,68,770 | 9,56,671 | 10,79,871 |
| Three-Wheelers | 2,19,446 | 2,61,385 | 4,88,768 | 6,94,801 | 7,41,420 | 8,36,231 |
| Two-Wheelers | 1,51,20,783 | 1,35,70,008 | 1,58,62,771 | 1,79,74,365 | 1,96,07,332 | 2,17,05,974 |
| Quadricycles | (12) | 124 | 725 | 725 | 120 | 4 |
| Grand Total | 1,86,20,233 | 1,76,17,606 | 2,12,04,846 | 2,38,57,411 | 2,56,07,391 | 2,82,65,519 |
Source: Society of Indian Automobile Manufacturers (SIAM)
Auto Component Industry
Indias auto component industry remains a key pillar of the countrys automotive ecosystem, supported by strong vehicle production, increasing localisation and deeper integration with global supply chains. Industry growth is being driven by rising vehicle demand, higher component value per vehicle and the growing adoption of advanced automotive technologies. According to the Automotive Component Manufacturers Association of India (ACMA) and Boston Consulting Group (BCG), the industry is expected to grow at a CAGR of 7-8% between FY 2025 and FY 2030, outpacing the overall automotive market by 1.4-1.6 times and reaching an estimated size of US$ 200 billion by 2030.
Exports are expected to remain a major growth driver. As global OEMs continue to diversify their sourcing strategies and Indias manufacturing capabilities strengthen, auto component exports are projected to grow at over 20% annually through FY 2030, supported by the countrys cost competitiveness, engineering capabilities and expanding global presence.
The industrys long-term outlook is supported by four structural trends - electrification, smartification, premiumisation and favourable government policies. The Governments target of achieving 30% electric vehicle penetration by 2030 is expected to accelerate demand for EV-specific components. In addition, the bill of materials (BOM) for electric vehicles is estimated to be around 1.4 times higher than that of comparable internal combustion engine (ICE) vehicles, creating significant opportunities for component manufacturers.
Technology is also reshaping the industrys growth trajectory. The electrical and electronic content in passenger vehicles is expected to double or even triple over the next decade, driven by increasing adoption of advanced driver assistance systems (ADAS), connectivity, infotainment and telematics. At the same time, the ongoing premiumisation of vehicles is driving demand for technologically advanced components, including braking, suspension, steering and electronic systems.
(Source: Mckinsey)
Outlook
The outlook for the Indian automobile industry remains positive, supported by resilient domestic demand, rising disposable incomes, increasing urbanisation, continued infrastructure development and favourable government policies. The industry is also expected to benefit from increasing vehicle electrification, localisation, digital retail adoption and expanding manufacturing capabilities. The Indian automobile market is projected to grow from US147.58billionin2026toUS147.58billionin2026toUS 213.74 billion by 2031, registering a CAGR of 7.69% during 2026-2031.
Growth is expected to be driven by sustained demand across passenger vehicles, commercial vehicles and two-wheelers, supported by improving rural consumption, higher infrastructure and logistics activity, and increasing adoption of electric vehicles. Continued investments in advanced technologies, expanding exports and deeper integration into global automotive value chains are expected to further strengthen the industrys long-term growth prospects. While geopolitical uncertainties, commodity price volatility and supply chain disruptions remain key monitorable risks, Indias strong manufacturing ecosystem and policy support are expected to sustain the sectors growth momentum.
(Source: Mordorintelligence)
GOVERNMENT INITIATIVES
The Government of India continues to strengthen the automotive and auto component industry through policy support aimed at promoting domestic manufacturing, accelerating electric mobility, enhancing localisation and improving global competitiveness. The sector continues to permit 100% Foreign Direct Investment (FDI) under the automatic route, encouraging investments across the automotive value chain.
Key initiatives include:
PM E-DRIVE Scheme:
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with an outlay of ?10,900 Crore, continued to support electric mobility through incentives for electric two-wheelers, three-wheelers, e-buses, e-trucks, ambulances and public charging infrastructure. The scheme also promotes domestic manufacturing and adoption of advanced EV technologies.PLI Scheme for Automobile and Auto Components:
The Production Linked Incentive (PLI) Scheme continued to support the manufacturing of Advanced Automotive Technology (AAT) products, encouraging localisation, technology development and investment in electric and hydrogen fuel-cell vehicle components while strengthening Indias position in global automotive supply chains.Union Budget 2026-27 Measures:
The Union Budget announced measures to strengthen the EV ecosystem, including customs duty exemptions on critical minerals and capital goods used in battery and EV manufacturing. The Government also proposed the development of Rare Earth Corridors to secure the supply of critical minerals required for electric mobility and advanced manufacturing. Additionally, the Union Budget 2026-2027 focuses on accelerating the EV ecosystem and manufacturing localisation, allocating ?5,939.87 Crore for the Auto PLI scheme.PM Gati Shakti and Infrastructure Development:
Continued investments under the PM Gati Shakti National Master Plan and higher public capital expenditure are expected to improve logistics efficiency, strengthen supply chains and support demand for commercial vehicles and construction equipment.Make in India and Localisation Initiatives:
Ongoing policy support under the Make in India programme continues to encourage domestic value addition, imports/substitution and technology-led manufacturing, creating long-term growth opportunities for the automotive and auto component industry.COMPANY OVERVIEW
Alicon Castalloy Limited (referred to as Alicon or the Company) is a globally integrated engineering and technology-driven provider of end-to-end aluminium casting solutions and one of Indias leading manufacturers of high-quality aluminium alloy castings. With a track record of over 57 years, complemented by the 93 year legacy of its European subsidiary, Illichmann Castalloy, the Company offers integrated solutions across design, engineering, tooling, casting, machining, sub-assembly, painting and surface treatment to customers across domestic and international markets.
The Companys technical expertise spans the entire aluminium casting value chain, from design and tooling through to precise machining and assembly. Alicon utilises advanced casting methods, including Low Pressure Die Casting (LPDC), Gravity Die Casting (GDC), and Sand Casting. The Company is recognised as a pioneer in India for LPDC and GDC technologies and has developed strong capabilities in product engineering, simulation, tooling and validation, enabling the manufacture of complex, high-precision aluminium components.
Alicons product portfolio is well diversified across automotive and non-automotive applications, with the automotive segment remaining its primary revenue contributor. Key automotive components supplied include cylinder heads, support brackets, intake manifolds, engine brackets, and crankshafts, along with a wide range of precision aluminium castings for passenger vehicles, commercial vehicles and two-wheelers. The Company currently serves 91 customers through a portfolio of over 801 live parts across domestic and international markets.
The Company continues to strengthen its presence in next-generation mobility solutions and is well positioned to address opportunities arising from hybrid vehicles, electric vehicles (EVs), fuel cell technologies and hydrogen-powered mobility. Its capabilities extend to manufacturing advanced aluminium components, including eAxle housings, motor housings and battery enclosures, while its non-automotive portfolio serves sectors such as infrastructure, defence, medical, energy, agriculture and aerospace, providing greater business diversification.
The Companys operational footprint supports its global strategy, ensuring efficient supply to customers across key markets. Alicon operates four modern manufacturing facilities, including three in India and one in Slovakia, supported by advanced technology centres, globally competitive tool rooms, product validation laboratories, machine shops and assembly facilities. With a presence across 18 countries, this manufacturing and engineering network enables the Company to deliver integrated solutions while supporting global OEMs through shorter lead times, improved cost efficiency and close-to-customer manufacturing.
FINANCIAL OVERVIEW
Alicons strategy is built on core mandates that drive expansion and ensure long-term stability. This direction has led to the continuous refinement of the Companys product portfolio. During FY 2025-26, the automotive segment accounted for approximately 95% of the Companys revenue, with Two-Wheelers contributing 42%, Passenger Vehicles 35% and Commercial Vehicles 18%, while the remaining 5% was derived from non-automotive applications. This diversified business mix enables the Company to cater to multiple mobility segments while reducing dependence on any single vehicle category.
The Companys client base continues to expand across domestic and international markets. During the year, Alicon served 91 customers across 18 countries through a portfolio of more than 801 live parts. The Company further strengthened its position as an integrated engineering and technology partner by offering end-to-end aluminium casting solutions, supported by capabilities across design, engineering, casting, machining, sub-assembly, painting and surface treatment. This integrated approach has strengthened long-term customer relationships and reinforced the Companys position as a preferred solutions provider to leading Original Equipment Manufacturers (OEMs) and Tier-1 suppliers.
In addition to market expansion, the Company remains committed to programmes to reduce operational expenditure. Alicon achieves consistent, incremental efficiencies across all operations by applying Kaizen methodologies. The Company also continued to invest in automation, lean manufacturing and productivity improvement initiatives to enhance operational efficiency and strengthen its competitive position.
Several key strategic achievements influenced Alicons business performance in FY 2025-26. The Company maintained an executable order book of approximately ?7,600 Crore, providing business visibility through FY 2030-31. During the year, it introduced 36 product innovations and continued to strengthen its portfolio across conventional and next-generation mobility applications. Alicon also remained focused on increasing value addition, product diversification and technology enhancement while expanding opportunities across hybrid, electric vehicle (EV), fuel cell and hydrogen applications.
Financial Performance FY 2025-26
| Particulars | FY 2025-26 | FY 2024-25 | YoY (%) |
| Revenues (Total Income) | 1,784.47 | 1,723.79 | 3.52% |
| EBITDA | 203.29 | 197.90 | 2.72% |
| Profit Before Tax (PBT) | 54.69 | 62.11 | (11.94%) |
| Profit After Tax (PAT) | 34.44 | 46.06 | (25.23%) |
(? in Crore)
For the year ended March 31, 2026, Alicon reported total income of ?1,784.47 Crore, registering a 3.52% year-on-year increase from ?1,723.79 Crore in the previous financial year. The growth was supported by steady demand across domestic and export markets, continued expansion of the Companys aluminium casting portfolio and the ramp-up of customer programmes. The Company also strengthened its business pipeline through new product introductions and continued focus on value-added engineering solutions.
The Companys EBITDA increased to ?203.29 Crore in FY 2025-26 from ?197.90 Crore in FY 2024-25, reflecting a growth of 2.72%. Consequently, the EBITDA margin stood at 11.39% in FY 2025-26 compared with 11.48% in the previous year, representing a contraction of 9 basis points. The moderation in margin was primarily due to higher aluminium prices, changes in product mix, increased logistics and packaging costs and certain one-time expenses recognised during the year.
Profit Before Tax (PBT) declined by 11.94% to ?54.69 Crore in FY 2025-26 from ?62.11 Crore in FY 2024-25. Similarly, Profit After Tax (PAT) decreased by 25.23% to ?34.44 Crore from ?46.06 Crore in the previous year. The decline in profitability was mainly attributable to higher input and operating costs, increased depreciation and one-time expenses incurred during the year.
Furthermore, the Companys Return on Capital Employed (ROCE) stood at 11.73% in FY 2025-26, compared with 14.43% in FY 2024-25. The Companys long-term credit rating by CRISIL was reaffirmed at CRISIL A/Positive, reflecting its stable business profile and healthy credit fundamentals.
Key Ratio Analysis
| Ratios | March 31, 2026 | March 31, 2025 | Change as compared to the immediately previous financial year |
| Debtors Turnover Ratio (times) | 3.46 | 3.37 | 3% |
| Inventory Turnover Ratio (times) | 7.28 | 7.65 | -5% |
| Interest Coverage Ratio (times) | 2.10 | 2.40 | -12% |
| Current Ratio (times) | 1.11 | 1.22 | -9% |
| Debt to Equity Ratio (times) | 0.52 | 0.58 | -10% |
| Operating Profit Margin (%) | 10.97% | 11.48% | -4% |
| Net Profit Margin (%) | 2.40% | 3.61% | -34% |
| Return on Net Worth (RONW) (%) | 5.65% | 7.78% | -27% |
OPERATIONAL OVERVIEW
FY 2025-26 was marked by steady operational execution despite a challenging global environment characterised by geopolitical uncertainties, supply chain disruptions, volatility in raw material prices, tariff-related concerns and cautious demand in certain international markets. Supported by strong domestic demand, the Company delivered improved operating performance over the last five successive quarters while maintaining manufacturing stability across its operations.
Manufacturing facilities operated at an average capacity utilisation of around 78% during the year. The domestic business remained the primary growth driver, contributing 80% of consolidated revenue, while exports and international operations accounted for the balance 20%. The automotive segment continued to dominate the business mix with a 95% revenue share, with the remaining 5% generated from non-automotive applications. Within the automotive portfolio, two-wheelers remained the largest segment, followed by passenger vehicles and commercial vehicles.
Business development remained a key focus during the year. During the fourth quarter, the Company secured two new domestic business wins, comprising one component each for the internal combustion engine (ICE) and non-automotive segments. In addition, the Company strengthened its long-term revenue visibility with a validated, executable order book of approximately ?7,600 Crore for the period from FY 2025-26 to FY 2030-31. The Company also continued to pursue additional opportunities across Europe and the U.S. to further strengthen its order pipeline.
Execution of recently secured programmes progressed as planned. During the year, supplies commenced for the Daimler programme, with around 60% of the planned parts receiving Production Part Approval Process (PPAP) approval, while the remaining parts are expected to be commercialised over the next two quarters. At peak volumes, the programme is expected to generate annual revenues of ?80-90 Crore. The Company also continued to advance programmes for Jaguar Land Rover (JLR) and other global customers.
The Company continued to invest in maintenance, automation, capacity enhancement and new product programmes to support future growth. Capital expenditure remained focused on advanced manufacturing technologies, automation and capacity creation for complex aluminium casting applications requiring higher machining content. These investments are expected to improve operational efficiency while supporting future business opportunities from domestic and global OEMs.
Operational excellence remained a priority throughout the year. The Company continued to implement lean and agile manufacturing practices, optimise overhead and fixed costs, improve process efficiencies, optimise interest costs and diversify its energy mix. These initiatives are aimed at improving productivity, strengthening profitability and enhancing long-term cost competitiveness.
The Company also remained aligned with long-term industry trends, including vehicle lightweighting, hybrid and electric vehicles, hydrogen and fuel-cell technologies, and increasing demand for high-value aluminium castings. Going forward, the Company will continue to focus on value addition, product diversification, technology enhancement, operational efficiency and increasing its share of business with existing customers to support sustainable and profitable growth.
STRATEGICAL OUTLOOK
The Company remains focused on driving long-term growth through value addition, product diversification, technology enhancement and deeper customer engagement. For FY 2026-27, its strategic theme is "Reset, Refocus and Rebuild", with priorities including establishing at least one new manufacturing facility, expanding automation and machining capabilities, and strengthening technology, processes and human capital.
The domestic market is expected to remain the primary growth driver, while the Company continues to pursue opportunities in Europe and the U.S. Increasing enquiries across new platforms, geographies and product segments, together with an executable order book of approximately ?7,600 Crore, provide strong medium-term growth visibility.
While remaining watchful of geopolitical developments, raw material price volatility and inflationary pressures, the Company will continue to focus on productivity, operational efficiency and margin improvement through ongoing investments in automation and capacity expansion. For FY 2026-27, it expects revenue growth of around 8-10% (excluding the impact of aluminium price movements), supported by a healthy order pipeline and sustained customer demand.
SWOT ANALYSIS
Strengths
Weaknesses
Opportunities
Threats
HUMAN RESOURCES
As of March 31, 2026, Alicon employed a team of 944 full-time staff members. The Company views its employees as central to its continued success and long-term stability. To support this belief, a carefully structured and consistently applied set of Human Resource (HR) policies is in place. These policies are designed to create a positive and helpful work environment, effectively attracting talented individuals and promoting high retention rates. The Companys demonstrated growth confirms the strong commitment, necessary skills, and consistent enthusiasm of its workforce.
The Human Resources department concentrates on facilitating employee professional growth through specific training and skill-building programmes. The department actively promotes a healthy work-life balance, acknowledging its importance for overall employee well-being. The Company is dedicated to maintaining a workplace that is safe, productive, and satisfying for every employee. The HR strategies are meticulously aligned to match individual career aspirations with the Companys broader business objectives, thus supporting the well-rounded development of all staff.
A core component of the Companys culture is its 3R framework: Reflection, Resilience, and Reimagination. These principles, alongside the cultural values of Agility, Innovation, and Passion, are crucial for maintaining employee motivation and for improving both overall efficiency and productivity.
To further support staff engagement and performance, several targeted HR initiatives are currently active. These include offering attendance-based incentives and specific pay adjustments for Senior Operators. A clear production incentive policy is utilised to effectively boost output. Furthermore, the Leave Policy ensures employees receive adequate time off. The Company also runs a dedicated programme known as HOPE, which facilitates the smooth transition of contract associates. This programme allows three to four operators to move from contractual to permanent roles annually.
RISK MANAGEMENT
| Risks | Impact | Mitigation Strategy |
Geopolitical Risk |
Global geopolitical developments, including trade tariff uncertainties, supply chain disruptions and inflationary pressures, may affect exports, raw material availability and customer demand. These factors can influence the Companys operations in domestic and international markets. | The Company mitigates geographical risk through its presence across 18 countries, reducing dependence on any single market. It continuously monitors geopolitical developments, assesses risks across its operating regions and maintains business continuity plans to minimise operational disruptions. |
Demand Slowdown Risk |
Economic slowdown, inflationary pressures and changing market conditions may affect demand across automotive and industrial sectors, impacting production volumes and revenue. | The Company continues to diversify its customer base, product portfolio and end-use industries. Its executable order book of approximately ?7,600 Crore provides medium-term revenue visibility, while expanding opportunities across domestic and export markets help reduce dependence on individual sectors or geographies. |
Raw Material Risk |
Availability of raw materials and volatility in aluminium and alloy prices may affect production costs and profitability. Supply disruptions may also impact manufacturing schedules. | The Company has standardised alloy variants to optimise material usage and incorporates raw material pass-through clauses in customer contracts to mitigate the impact of price fluctuations. |
Competition Risk |
Increasing competition from domestic and global manufacturers may exert pressure on pricing, market share and customer acquisition. | The Company differentiates itself through integrated engineering capabilities, advanced manufacturing technologies and over five decades of industry experience. Continued investments in automation, advanced machining capabilities and technology enhancement strengthen operational efficiency and support long-term competitiveness. |
Supply Chain Risk (New) |
Global logistics disruptions, component shortages and supplier-related challenges may affect production schedules and programme execution. | The Company continues to diversify its supplier base, strengthen customer coordination, improve production planning and enhance operational flexibility to minimise the impact of supply chain disruptions. |
INTERNAL CONTROL SYSTEMS
The Company has put in place strong internal control systems that match the size, nature, and complexity of its business. This framework outlines the various processes, guidelines, and procedures that direct operations. The internal controls are designed to protect assets and infrastructure, enhance operational efficiency, optimise resource use, manage financial operations, address evolving business risks, and ensure compliance with relevant laws and regulations. They also safeguard against unauthorised use and conduct thorough risk assessments.
These controls are regularly reported to management to support informed decision-making. Effective governance, a vigilant finance team, and independent internal reviews strengthen the companys ability to adapt to new challenges. Continuous reviews and testing maintain the effectiveness of the internal control system across all business areas.
The Audit Committee closely monitors business operations to ensure compliance. The internal audit function evaluates critical audit areas independently, and the Audit Committee reviews these findings periodically.
The Board receives observations and recommendations from the Audit Committee and takes necessary actions to address any issues identified.
CAUTIONARY STATEMENT
The Management Discussion and Analysis includes statements that outline the Companys goals, forecasts, estimates, and expectations, which may be considered "forward-looking statements" under applicable laws and regulations. These statements are based on informed judgements and estimates. The Companys past performance is not necessarily a predictor of future outcomes, and actual results may vary significantly from those stated or implied. These forward-looking statements are subject to various risks and uncertainties, such as economic conditions impacting supply and demand, market price fluctuations both domestically and internationally, changes in government regulations and policies, tax laws, availability and costs of raw materials, and other legal factors. The Company does not undertake any obligation to publicly update, amend, or revise any forward-looking statements in light of new developments, information, or events.
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1860-267-3000 / 7039-050-000
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+91 9892691696
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