Thaai Casting Shares Rally After Securing ₹140 Crore Orders from Domestic Clients

Thaai Casting Shares Rally After Securing ₹140 Crore Orders from Domestic Clients

In a significant development for the auto component industry, Thaai Casting Limited witnessed a notable 5.1% surge in its share price following the announcement of new orders worth approximately ₹140 crore from domestic customers. This achievement not only highlights the company’s growing importance in the sector but also reinforces investor confidence in its operational strength and long-term potential.

Major Orders Signal Long-Term Revenue Stream

The orders comprise two separate contracts — one valued at ₹126.53 crore and another at ₹12.43 crore — scheduled to be executed over a span of 60 to 80 months. These deals mark a major milestone for the company and suggest strong demand for its precision-cast components in both automotive and non-automotive segments. Such long-duration contracts indicate recurring income over multiple years, a rare asset for a micro-cap company operating in the capital-intensive auto ancillary space.

Rising Market Confidence Reflected in Share Price

The positive news led to a sharp rise in Thaai Casting’s share price during the early hours of trading on June 2, 2025. The stock saw over 5% appreciation as investors welcomed the announcement as a vote of confidence in the company’s future prospects. With consistent earnings and a growing clientele, Thaai Casting appears to be transitioning from a small-cap supplier to a serious player in the high-precision components industry.

Strong Clientele and Product Range

Thaai Casting, established in 2011, has built an impressive client list over the years. The company supplies critical automotive components to several leading original equipment manufacturers (OEMs), including Maruti Suzuki, Tata Motors, Ashok Leyland, Mahindra & Mahindra, Toyota, and JCB. This clientele reflects the company’s reputation for consistent quality, timely delivery, and technical expertise.

The company focuses on advanced high-pressure die casting and precision engineering of components made from both ferrous and non-ferrous materials. Its product offerings include engine brackets, transmission mounts, steering system parts, and other components required across multiple automobile platforms. This diversified product portfolio allows Thaai Casting to serve both mass and premium vehicle segments efficiently.

Revenue Soars Despite Profit Dip

The company’s financial performance in the second half of FY24–25 shows promising revenue growth. Thaai Casting recorded a 44% year-on-year increase in revenue, climbing from ₹48 crore to ₹69 crore. However, net profit during the same period declined from ₹8 crore to ₹6 crore. While the dip in profitability may concern some stakeholders, the revenue growth trend is encouraging and indicates increasing market demand for the company’s offerings.

The decline in profits could be attributed to rising input costs, expanded capacity expenses, or ongoing capital investments. Yet, the secured long-term orders suggest the potential for stronger profitability ahead, especially once economies of scale begin to take effect.

Investments in Capacity and Infrastructure

To support its growing order book and meet quality standards, Thaai Casting has ramped up its infrastructure. The company is investing in advanced manufacturing capabilities such as gas nitriding, gear shaping, and heavy-duty machining. These technological upgrades are crucial for enhancing product durability, accuracy, and customization — all of which are essential for high-performance automotive and industrial parts.

These improvements are also likely to reduce turnaround time and improve the company’s ability to handle bulk and complex orders simultaneously.

Sectoral Outlook Favors Suppliers

India’s auto ancillary sector has been on a recovery and growth path, supported by rising vehicle sales, the government’s ‘Make in India’ push, and OEMs’ increasing focus on localized supply chains. With growing demand for electric vehicles and new vehicle platforms, component suppliers with strong technical capabilities and proven track records are likely to benefit.

Although Thaai Casting’s current portfolio largely serves ICE (internal combustion engine) vehicle segments, its precision engineering skills and diverse product range make it well-suited to pivot towards EV components in the near future.

Outlook Remains Positive

Analysts and market observers view Thaai Casting’s recent order wins as a clear sign of growing credibility among clients. If the company continues to execute well and improve its profit margins, it could attract institutional interest and move up the market cap ladder.

Moreover, its diversified client base, long-term contracts, and ongoing investments in infrastructure suggest a stable growth outlook for the medium to long term. Maintaining operational efficiency and cost controls will be key to ensuring consistent profitability.

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