Recently Listed Stock: Where does KVS Castings make its revenue from?

SYNOPSIS: We’ll be looking at KVS Castings’ strong IPO debut, diversified product portfolio, financial performance, manufacturing capacities, strategic growth roadmap, and how sector tailwinds across automotive, railways, defence, and global supply chains position the company for sustained expansion.

One of the leading manufacturers of high-quality ferrous castings, specialising in cast iron and ductile iron components, and the Foundry Division of the KVS Premier Group, is certainly one to watch.

We are talking about KVS Castings Limited, which is engaged in the business of manufacturing a diverse range of castings, including cast iron, SG iron, alloy steel, and stainless steel.

The company’s shares made a strong debut on the SME platform on 6th October, listing at Rs. 66.3 per share, representing an 18 percent premium over the issue price of Rs. 56 per share. The IPO, a Rs. 27.83 crore book-built issue, opened for subscription on 26th September 2025 and closed on 30th September 2025, with allotments finalised on 1st October 2025.

Company Overview & Product Portfolio

KVS Castings Limited is a trusted name in the manufacturing & production of high-quality ferrous castings, including cast iron and ductile iron. It delivers comprehensive casting solutions backed by engineering precision and advanced technology.

With an extensive product portfolio of over 150 precision-engineered components, such as suspension brackets, brake drums, gearbox housings, pump bodies, and oil filters.

KVS Castings offers a diversified product portfolio catering to the Railway, Defence, Power, Automobile, and Industrial Machinery sectors, delivering precision-engineered components designed to perform under high load, high pressure, and high-temperature conditions. 

In the automobile segment, the company manufactures components such as lever shifts, compressors, front housings, and oil filters. Its offerings for the energy and power generation industry include insulator caps. The agriculture machinery portfolio features brake housings, manifolds, PTO housings, water pump bodies, water pump pulleys, and more. For industrial machinery, KVS Castings supplies key parts such as crown pinions and gears. 

Additionally, in the heavy machinery and equipment category, the company produces components including brake drums, alternator brackets, front hubs, PTO adaptors, PTO and steering housings, among various other high-performance parts.

The company is a reliable provider of precision-engineered components for Indian Railways, manufacturing six precision-machined parts used in the air brake systems of railway wagons to ensure consistent and efficient braking performance. Its expertise includes producing buffer plungers and buffer casings, which play a critical role in enhancing the durability and reliability of railway operations.

KVS Castings is currently developing an 81 mm artillery shell for defence applications, engineered to meet stringent military standards of precision, performance, and reliability. This advancement reflects its growing expertise in high-precision defence engineering.

Financials & Revenue Breakup

In H1 FY26, KVS Castings reported a revenue from operations of Rs. 24 crores, a decline of nearly 11 percent HoH but a slight growth of about 4 percent YoY. Meanwhile, its net profit for the quarter stood at Rs. 3.7 crores, representing a decline of nearly 7.5 percent HoH but a marginal growth of more than 42 percent YoY, over the same period.

In FY25, the company’s revenue was predominantly driven by the auto components segment, which contributed ~74 percent, amounting to Rs. 37.33 crore. The farm tractor segment accounted for around 10 percent of total revenue with Rs. 4.94 crore, while the railways segment contributed about 9 percent, generating Rs. 4.44 crore. The remaining 7 percent, or Rs. 3.4 crores came from other product categories. Overall, the company recorded a total revenue of Rs. 50.11 crore for FY25, reflecting a strong concentration in the auto components business.

Strategic Roadmap & Investment Rationale

KVS Castings has outlined a comprehensive strategic roadmap aimed at sustaining long-term growth and strengthening its competitive positioning. The company plans to expand its plant and machinery to enhance automation and increase annual production capacity to 25,000 MT, enabling higher operational efficiency, timely deliveries, and consistent product quality. Alongside this, KVS Castings is modernising its casting and manufacturing processes by integrating advanced technologies such as CAD/CAM/CAE tools and CNC/VMC machines, reducing human dependency and ensuring superior precision and output.

The company is also focused on expanding partnerships with existing and new OEMs across automotive, railways, tractors, and defence sectors, aiming to deepen customer engagement and drive incremental business opportunities. Additionally, KVS Castings is diversifying its casting portfolio by scaling production of grey iron, ductile iron, and alloy steel castings, while offering value-added services such as machining, coating, and testing.

KVS Castings’ comprehensive product portfolio covers a wide range of castings, from 0.5 kg to 95 kg, across multiple material grades, with a monthly capacity of 50,000 to 90,000 parts delivered as raw castings or machined sub-assemblies. 

The company serves a diversified clientele, including OEMs and Tier-1 customers across commercial vehicles, tractors, railways, off-highway equipment, and defence, supplying high-precision components for Indian Railways and defence applications.

Manufacturing Facilities

KVS Castings operates state-of-the-art manufacturing facilities equipped with advanced machinery and quality-control systems. Manufacturing Facility – Unit 1 has an installed capacity of 7,200 MTPA, with actual production recorded at 5,487 MTPA in FY25, 5,885 MTPA in FY24, and 6,113 MTPA in FY23, reflecting capacity utilisation levels of 76.20 percent, 81.74 percent, and 84.90 percent, respectively.

In addition to this, the company has established a new manufacturing facility (Unit 2) located in Girdhai and Baghelewala, Tehsil Kashipur, spanning a total area of 30,929.02 sq. metres. With this expansion, the company’s total installed capacity has increased to 25,000 MTPA, significantly strengthening its production capabilities and supporting future growth.

Benefit from Multi-Sector Growth Tailwinds

KVS Castings is strategically positioned to capitalise on strong industry tailwinds driven by rising domestic and international demand for iron and alloy castings. With the Indian castings market projected to reach $42.6 billion by 2030, the company stands to gain from favourable opportunities to scale production and expand its portfolio. India’s robust steel manufacturing ecosystem further supports the business by ensuring reliable raw material availability, price stability, and consistent quality control.

Rising domestic defence manufacturing and increased allocations for indigenous production of high-precision components present another compelling opportunity. These industry-wide trends collectively position KVS Castings to strengthen its presence across key sectors and transition into a high-value, future-ready casting solutions provider.

The company also benefits from global supply chain realignment as Western manufacturers increasingly diversify sourcing under the “China + 1” model. This shift enhances KVS Castings’ prospects for export growth and new international partnerships. Additionally, growing investments in EVs, commercial vehicles, and railway modernisation are driving higher demand for precision-engineered casting components, segments where the company already holds strong expertise.

Written by Shivani Singh

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