Introduction
Incorporated in the year 1990, Magna Electro Castings Ltd is engaged in the manufacturing and supply of high-quality ferrous cast components for critical industrial applications. Over the decades, the company has established itself as a reliable manufacturer of complex ductile iron and grey iron castings, catering to customers across domestic and international markets.
The company operates with a clear focus on precision engineering, process reliability, and on-time delivery. Its manufacturing ecosystem is designed to seamlessly integrate product design, tooling, casting, machining, testing, and finishing, enabling consistent quality across low-to-medium volume production runs. Magna’s capabilities span the complete concept-to-product lifecycle, supported by advanced CAD/CAM systems and simulation-driven development practices.
Magna Electro Castings has continuously invested in infrastructure and technology upgrades to enhance capacity, efficiency, and sustainability. Key milestones include the commissioning of a state-of-the-art CAD/CAM centre, multiple expansion phases to increase monthly production capacity, modernization of melting furnaces, installation of advanced molding lines, and implementation of sand reclamation and automation systems. These initiatives have helped the company improve yield, dimensional accuracy, and overall process control.
The company also places strong emphasis on energy efficiency and environmental responsibility. A significant portion of its power requirements is met through renewable sources, including wind and captive solar power projects. Continuous investments in reclamation systems, fume extraction, and cleaner production technologies reflect the company’s long-term commitment to sustainable manufacturing.
From a market perspective, Magna serves a diversified customer base across automotive, tractor, locomotive, wind energy, valves, transmission, and industrial equipment segments. Revenue is well balanced between domestic and export markets, with exports contributing nearly half of total turnover. The foundry division remains the core business, while renewable energy operations support cost optimization and sustainability goals.
Looking ahead, the company plans to further augment molding capacity and enhance its ability to manufacture castings across a wider range of weight segments. These initiatives are expected to strengthen its positioning as a dependable supplier of safety-critical and precision-engineered ferrous components globally.
Business, Products and Services
Magna Electro Castings specializes in the production of ductile iron and grey iron castings, ranging from approximately 300 grams to 2,000 kilograms, supplied in both as-cast and fully machined forms. The company’s expertise lies in handling complex geometries, tight tolerances, and application-critical components where reliability is essential.
Product Development and Engineering
Each product begins with detailed engineering and digital modeling. Accurate 3D designs are developed using advanced CAD tools, followed by casting and machining simulations to optimize metal flow, solidification, and dimensional stability. The company has executed simulations for thousands of castings using industry-standard software, ensuring reduced development cycles and improved first-time-right outcomes.
Molding and Core Manufacturing
The manufacturing setup includes multiple molding lines to address varied customer requirements. Large castings are produced using a furan molding line, while small-to-medium components are manufactured on a high-pressure green sand molding line. The core shop supports multiple processes including coldbox, shell cores, and 3D-printed cores, enabling the production of highly complex internal geometries with repeatability and precision.
Melting, Testing and Quality Assurance
Molten metal is produced using medium-frequency induction furnaces, with stringent control over chemistry and temperature. Advanced testing infrastructure, including spectrometers, thermal analysis systems, carbon-sulphur determinators, and mechanical testing facilities, ensures that every casting meets prescribed metallurgical and mechanical specifications.
Fettling, Finishing and Machining
Post-casting operations are carried out in a dedicated finishing division equipped with CNC fettling machines, special-purpose machines, high-speed grinding tools, grit blasting units, and paint booths. The in-house machine shop houses a wide range of CNC machining centers, including multi-axis machines, turn-mill centers, honing machines, and coordinate measuring systems, enabling Magna to deliver fully machined, ready-to-assemble components.
Value-Added Services
In addition to casting and machining, the company provides several value-added services such as painting, phosphating, powder coating, pressure leak testing, and Millipore cleanliness testing. These services allow customers to receive finished components aligned with stringent quality and cleanliness standards.
Product Portfolio
The company manufactures a wide range of components including bearing caps, valve bodies, pedestals, frames, yokes, push rods, exhaust manifolds, turbocharger castings, journal box adaptors, and austempered ductile iron (ADI) parts. Fully machined products include diffusers, covers, sleeves, manifolds, axial bearings, and rocker brackets.
Applications and End-Use Industries
Magna’s products are used across multiple industries such as automobiles and tractors, locomotives, wind energy, hydraulics, pumps, marine equipment, engines, valves, gearboxes, off-highway vehicles, flow control systems, suspension components, and industrial machinery.
Material Capabilities
The company works with a broad range of materials including ductile iron, grey iron, silicon-molybdenum (SiMo) iron, compacted graphite iron, and austempered ductile iron, enabling it to meet diverse performance, strength, and thermal requirements.
Financials
For Q2FY26
- Net sales for the quarter ended September 2025 stood at ₹52.33 crore, reflecting a growth of 14.67% compared to ₹45.64 crore in the corresponding quarter of the previous year.
- EBITDA for the quarter was ₹9.94 crore, marginally lower by 2.93% from ₹10.24 crore recorded in September 2024.
- Net profit declined to ₹5.41 crore, representing a decrease of 19.45% from ₹6.72 crore in the same period last year.
- Earnings per share (EPS) for the quarter stood at ₹12.78, compared to ₹15.87 in September 2024.
For the year Ended March 2025
For the financial year ended March 2025, Magna Electro Castings Ltd delivered a strong operational and financial performance, driven by higher volumes, improved export demand, and operational efficiencies.
The company’s operating revenue increased by 22.79%, rising from ₹14,369.78 lakhs in the previous year to ₹17,644.92 lakhs during the year under review.
Export revenues recorded robust growth, increasing by 31.22% to ₹8,681.48 lakhs, compared to ₹6,615.84 lakhs in the previous year.
This growth reflects sustained demand from global customers and the company’s strong positioning in export-oriented, value-added cast components.
Domestic revenues also showed healthy traction, growing by 15.26% from ₹7,427.70 lakhs to ₹8,560.81 lakhs, supported by steady demand from automotive, tractor, and industrial segments.
Profit Before Tax (PBT) rose by 52.13% to ₹3,104.46 lakhs, compared to ₹2,040.61 lakhs in the previous year.
Profit After Tax (PAT) increased by 53%, reaching ₹2,311.70 lakhs, up from ₹1,510.92 lakhs in the previous year. The strong growth in profits was driven by higher operating leverage, improved capacity utilization, and disciplined cost management.
66.49% of the company’s total power consumption was sourced from green energy, generated through its captive windmills and solar power plant.
Total energy generation from renewable sources during the year stood at 1,01,06,316 units, of which wind energy contributed 50,27,050 units (33.07% of total consumption) and solar energy contributed 50,79,266 units (33.42% of total consumption).
Income from wind and solar energy amounted to ₹722.76 lakhs, compared to ₹741.57 lakhs in the previous year. The marginal decline was primarily due to lower renewable energy generation during certain periods and increased internal power consumption resulting from higher production activity. Despite this, the company’s continued reliance on renewable energy contributes to long-term cost efficiency and positions it favorably to meet emerging global sustainability norms, including Carbon Border Adjustment Mechanism (CBAM) requirements in European markets.
For the year ended March 2025, the Company reported capital work-in-progress (CWIP) of approximately ₹41 crore on its balance sheet. However, in the absence of detailed disclosures regarding the specific nature of the projects, the stage of completion, deployment of funds, or the expected impact on revenues and margins, this investment should not be viewed as an assured or immediate value accretive factor. While CWIP generally indicates ongoing expansion or modernization efforts, there is currently limited visibility on how much of this expenditure has been incurred, where it has been deployed, or the extent to which it will translate into incremental topline growth or margin improvement. Accordingly, investors are advised not to treat CWIP as a standalone positive trigger for investment decisions and to evaluate it in conjunction with the Company’s operating performance, execution capabilities, and future disclosures.
New Projects Implemented During the Year
During the year under review (FY 25), the Company undertook several capacity expansion and process improvement initiatives aimed at strengthening its manufacturing capabilities. A new bulk storage and pumping system for additives was installed to enhance process consistency and operational efficiency. In addition, a new automatic pouring system was commissioned for the third molding line to improve casting quality and repeatability.
The Company also strengthened its finishing capabilities with the installation of two 5-axis CNC grinding machines in the finishing division, enabling higher precision, improved surface finish, and faster turnaround for complex components.
The erection of the Third Molding Line project, undertaken to augment the Company’s molding capacity, was completed during the year. Trial runs for the new line have commenced as of the date of this report, with commercial operations expected to begin by June 2025. The total project cost is ₹47.80 crores, of which the Company has availed or proposes to avail term loans of ₹13.49 crores from banks against a sanctioned limit of ₹15 crores. The remaining expenditure of ₹34.31 crores has been or will be funded through internal accruals.
Future Plans
The commissioning of the Third Moulding Line is expected to be fully completed by the end of June 2025. With this expansion, the Company’s total installed moulding capacity has increased to 2,000 MT per month, while the current melting capacity stands at 1,500 MT per month. The Company plans to enhance melting capacity in a phased manner, aligned with the ramp-up in production volumes.
This expansion is expected to improve the Company’s ability to competitively manufacture medium-sized components and secure new business opportunities. Upon successful stabilization of the new line, the Company will be well positioned to cater to a wider range of castings, covering component weights from 1 kg to 250 kg, further strengthening its product portfolio and market reach.
Management’s comments
No information about this is available.
Sectorial Outlook
The Indian foundry industry continues to witness steady structural growth, supported by rising demand from automotive, industrial machinery, energy, infrastructure, and renewable sectors. India remains one of the world’s largest casting producers, with a strong presence in grey iron and ductile iron castings, particularly for low-to-medium volume, high-complexity components.
The Indian foundry market is projected to grow from USD 25.57 billion in 2025 to USD 42.61 billion by 2030, registering a CAGR of 11.13%. Growth drivers include increased vehicle production, expansion in industrial machinery, infrastructure spending, and government initiatives such as Make in India, along with rising investments in wind and solar energy projects.
Technological advancement is reshaping the sector, with increasing adoption of automation, simulation-driven design, ERP-based process integration, CNC machining, and 3D printing. These technologies are improving yield, reducing lead times, and enabling foundries to meet stringent quality and dimensional requirements, particularly for export-oriented customers.
Sustainability has become a critical industry focus. Indian foundries are increasingly investing in renewable energy, sand reclamation, waste recycling, and CO₂ reduction initiatives to align with global environmental standards and regulatory frameworks such as CBAM in Europe. Energy-efficient manufacturing and responsible resource utilization are now key competitive differentiators.
Within this landscape, companies specializing in low-to-medium volume castings in the 1–250 kg range, serving technically demanding applications across the US, Europe, and India, are well positioned to benefit from global supply chain diversification and increasing preference for reliable, compliance-ready suppliers.
Conclusion
Magna Electro Castings Ltd, a 35-year-old, completely debt-free company, is engaged in the manufacturing of ductile iron and grey iron castings catering to automotive, industrial, energy, and engineering applications across domestic and global markets. The company specializes in technically demanding, low-to-medium volume castings and has built strong export linkages with customers in the US and Europe. In the year ended FY25, the company reported capital work-in-progress of approximately ₹41 crore, reflecting a major ongoing capacity expansion and modernization phase. Considering the company’s current market capitalization of around ₹367 crore, this level of internal investment is significant and highlights a strong long-term growth intent. Supported by rising revenues, healthy profitability, and a high share of renewable energy usage, the company is well positioned to scale operations sustainably. The commissioning of new molding capacity is expected to further strengthen its competitive positioning and earnings visibility over the medium term.