Electrosteel Castings reported a challenging Q1FY27. Consolidated revenue stood at ₹1,426 Cr, down 8.5% YoY, with EBITDA at ₹139 Cr, a 29.8% YoY decline.

Profit after tax was ₹48 Cr, falling 45.7% YoY, leading to a Diluted EPS of ₹0.8. The past year was tough for the water infra sector due to project slowdowns.

The company is strategically diversifying into valves and industrial paints.

It targets ₹800 Cr revenue from valves with a 16% EBITDA margin in 4 years, and ₹800-1000 Cr from industrial paints over 5 years, backed by a ₹250-300 Cr capex plan.

Exports are also a focus, aiming for 25% of sales.

Recently, ECL acquired T.I.S.

Services (Italy) to bolster its valves segment.

Management expects a recovery in H2 FY27, projecting normalization in FY27-28, driven by increased government funding and renewed focus on Jal Jeevan Mission 2.0 and AMRUT 2.0.