Earnings Call Transcript.

Casting the Future 18th August, 2026. To To The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited Floor 25, P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalai Street, Mumbai — 400 001 Bandra (East), Mumbai — 400 051 Scrip Code: 531147 Scrip Symbol: ALICON Dear Sir/ Madam, Sub: Transcript of Analysts Conference Call We are enclosing herewith the transcript of the conference call with analysts, which took place on 14th August, 2026, after announcement of the Financial Results for quarter ended 30th June, 2026. The said transcript is also uploaded on website of the Company. We request you to kindly take the above information on your record. Thanking you, Yours faithfully, For ALICON CASTALLOY LIMITED VIMAL GUPTA CHIEF FINANCIAL OFFICER Alicon Castalloy Limited Q1 FY2027 Earnings Conference Call Transcript August 14, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Alicon Castalloy Limited Q1 FY2027 Earnings Conference Call. As a reminder, all participant lines will remain in the listen-only mode and there will be an opportunity for you to ask questions after the management's opening remarks. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Mayank Vaswani from CDR India. Thank you and over to you. Mayank Vaswani: Thank you, Ryan. Good morning, everyone, and thank you for joining us on Alicon Castalloy Limited's Q1 FY27 Earnings Conference Call. We have with us on the call today, Mr. Sumit Bhatnagar, Group CEO; and Mr. Vimal Gupta, Group CFO. Mr. Sumit Bhatnagar will begin by sharing his perspectives on the industry environment and overall business performance. Mr. Vimal Gupta will then take you through the financial and operational performance for the quarter. Before we begin, I would like to remind you that today's discussion may contain forward-looking statements that are subject to risks and uncertainties. The relevant disclaimer is included in the earnings materials that have been circulated earlier. I would now like to hand over the floor to Mr. Sumit Bhatnagar. Sumit, over to you. Sumit Bhatnagar: Thank you, Mayank, and good morning, everyone. Let me begin by thanking all our investors, analysts, shareholders for joining us today. This is my first investor interaction with you after taking charge as the CEO of Alicon effective 1st April 26. So, before I speak about the quarter, I would like to take a moment to share with you how I see Alicon, where are we today and more importantly, where are we going. Alicon Castalloy Limited’s Q1 FY2027 Earnings Call Transcript Page 1 of 27 When I took charge, I articulated three words to the organization, which is ‘Reset’, ‘Refocus’ and ‘Rebuild’. And I clearly remember that I did share this with you during my last call in the last quarter. These three words are not about changing the fundamentals of Alicon. In fact, it is quite the opposite. We believe Alicon has a strong foundation over the years, strong customer relationship, deep casting and manufacturing capabilities, a credible technology platform, global exposure and most importantly, a talented and a committed organization. Our objective is to take these trends and sharpen them. We want to make Alicon more agile, more efficient, more customer-focused and more scalable. And therefore, a Reset’, ‘Refocus’ and ‘Rebuild’ is not a short-term program. It is the operating philosophy with which we intended to build the next phase of Alicon. Let me start with the market environment. The Indian automotive industry, it continues to remain structurally very strong. The underlying demand environment has been positive, and we have seen healthy growth across the major automotive segments. More importantly, the latest industry data continues to support this positive trend in Q1 FY27. The passenger vehicles recorded their highest ever first quarter sales at approximately 1.57 million units, growing to around 11.3%. 2-wheelers grew 21%, and commercial vehicles grew 19.5%. So, the overall environment is quite supportive. But what is particularly encouraging for us is that Alicon has grown significantly faster than the underlying market. During the quarter, Alicon registered a year-on-year growth of approximately 37.7% on a consolidated basis and 43.6% on a stand-alone basis. If we adjust the impact of material inflation, our underlying volume or growth is approximately 17.5% on a consolidated basis, and 22% on a stand-alone basis. For me, this is an important number because it demonstrates that our growth is not simply a function of higher commodity prices being passed through to the customers. There is real underlying growth happening within the business. Our commercial vehicle business is particularly a good example. We have registered approximately 26% growth in commercial vehicle segment, supported by the conversion of some of the businesses we acquired recently into mass production. This is precisely the kind of growth we want to build growth that comes from new customers, new programs, increased wallet share and successful industrialization. At the same time, Q1 was definitely not an easy quarter on a profitability perspective. The quarter witnessed a significant volatility in the input cost, Alicon Castalloy Limited’s Q1 FY2027 Earnings Call Transcript Page 2 of 27 particularly because of the geopolitical developments in the Middle East, metal prices, gas prices, tooling costs and several other input costs moved sharply. This created pressure across the entire automotive supply chain and Alicon was definitely not an exception. Therefore, while the top line performance was strong, the inflationary environment created a huge pressure on the margins and profitability. This is something we are addressing very aggressively through our operational efficiency initiatives, which I will come to you shortly. Now if I look at the automotive technology transition, it is very clear that there are most important structural changes which are taking place in the industry, the transition towards the new powertrain technologies. We believe the future automotive landscape will not be defined by a single technology. It will be a combination of ICE vehicles, hybrid and electric and other emerging technologies depending on the application, geography, infrastructure and the customer requirements. We see particularly a strong potential in hybrid vehicles. Our current assessment is that the hybrid segment could grow an approximate 25% to 30% CAGR over the next several years, while EVs could grow at approximately 20% to 22% CAGR over four to five years of time. This is strategically important for Alicon because we are already well positioned. We have a strong presence in hybrid vehicles, including supplying the largest hybrid vehicle manufacturing company in India as a single source supplier. This is a significant strategic advantage. At the same time, our EV portfolio is also expanding. We are supplying products such as electric motor housings, e-axle housings, battery housings, inverter housings to the leading Indian and global companies in the EV ecosystem. So, we are not betting on one technology, and we are positioning Alicon to participate in the entire evolution of vehicle architecture. And this is where our technology and engineering capabilities become extremely important. Now with the three words Reset’, ‘Refocus’ and ‘Rebuild’, let me first talk about what we are trying to Reset. This is the first pillar. When I say Reset, I do not mean starting from 0. We are not changing the basic fundamentals of the company. We are sharpening our strategic intent. The first objective under Reset is to create what I call as an island of excellence. We want Alicon to become an organization where excellenc [Showing first 8,000 characters — download PDF for full document]