Best Cast It Limited IPO

01At a glance

What the company does: pours molten aluminium alloy into metal moulds under gravity to make cast parts such as brake master cylinders, cylinder heads, steering pinion housings and circuit breaker housings, and heat treats, machines and tests them, from two leased plants in the Ambattur Industrial Estate, Chennai (DRHP p.127, DRHP p.128, DRHP p.149).

Who pays it: original equipment makers and their first-tier suppliers; 33 customers in FY26 (DRHP p.127, DRHP p.146). The largest customer brought 47.72% of FY26 revenue, the top five 75.28% and the top ten 84.11% (DRHP p.25). The customer list in the order book names HL Mando Anand India, GE T&D India, SNY Autotech, Flowserve India Control Pvt Ltd, Modine Thermal Systems and Siemens Energy India among others (DRHP p.143). Automotive was 65.47% of FY26 revenue (DRHP p.25).

Why it is raising money: ₹18.0 crore of the fresh issue is to repay loans and ₹16.5 crore to pay for machining and testing equipment; the general corporate purposes amount is blank (DRHP p.86). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹91.7 crore in FY24 to ₹108.6 crore in FY26, about 8.8% a year, and profit after tax from ₹3.9 crore to ₹7.5 crore, about 39.4% a year (our arithmetic, DRHP p.186).

The one thing to understand: revenue rose while the metal poured fell. Castings poured went from 2,540 tons in FY24 to 2,246 tons in FY26 (DRHP p.145), while revenue rose by ₹16.9 crore (our arithmetic, DRHP p.186). Automotive revenue stayed at about ₹71 crore in each of the three years; the growth came from power equipment and from a line the document calls "Others" (DRHP p.136).

02The business, in plain words

What Best Cast IT does

Best Cast IT makes aluminium gravity die castings and assemblies (DRHP p.127). Gravity die casting means molten metal is poured into a reusable metal mould and fills it by its own weight, without being forced in under pressure (DRHP p.142). The company does most steps itself (DRHP p.128):

• Alloy making: it mixes aluminium with copper, magnesium, silicon and other elements to the grade a customer asks for, and casts the mix into ingots (DRHP p.26, DRHP p.141).
• Tools: it designs and makes its own dies, moulds, jigs and fixtures in a tool room (DRHP p.135).
• Casting: on hydraulic tilting machines, with sand cores for hollow parts (DRHP p.144).
• Finishing: heat treatment, fettling, shot blasting, CNC machining and leak, pressure and X-ray style testing; some coatings are done by outside processors (DRHP p.128).

It supplies more than 340 components weighing from 0.18 kg to over 50 kg (DRHP p.127). Products named include master cylinders and wheel cylinders for brakes, turbocharger compressor covers, two-wheeler and four-wheeler cylinder heads, steering pinion housings, gear boxes and housings for gas-insulated and air-insulated circuit breakers, train air suspension plates, industrial fan blades and hubs, and pneumatic actuator cylinders (DRHP p.128 to DRHP p.133).

A vehicle or equipment maker sends a drawing and a purchase order → the company makes the die, melts the alloy, casts, heat treats, machines and tests the part → it delivers the finished part → it invoices against the order, with some customers adjusting prices for metal costs through debit and credit notes (DRHP p.29, DRHP p.141 to DRHP p.143).

The company was incorporated in Tamil Nadu on November 23, 1974 as Best Cast Private Limited, founded by S. R. Kabirdass, became a deemed public company from July 1, 1997, and took its present name in 2000 to reflect its use of CAD/CAM design (DRHP p.157, DRHP p.127).

It works from Unit-1 (44,625 sq ft) and Unit-2 (83,000 sq ft), both in the Ambattur Industrial Estate and both leased; the Unit-1 lease, which also houses the registered office, runs to December 31, 2026 (DRHP p.127, DRHP p.149). It holds ISO 9001:2015 and IATF 16949:2016 certificates (DRHP p.255). It had 132 employees on its rolls at June 30, 2026 and 58 contract workers (DRHP p.148).

Earnings equation: Revenue = tons of castings sold × price per kg, plus small machining and heat treatment charges. The document gives tons poured, not tons sold, and gives no prices, so the equation can only be approached through arithmetic on production (see section 04).

03Where the money comes from

By the industry the customer serves (₹ crore):

Source: DRHP p.25, DRHP p.136, converted from ₹ lakh. Automotive went from 78.20% of revenue in FY24 to 65.47% in FY26 (DRHP p.25). The document does not say what "Others" is; it rose from ₹4.5 crore in FY25 to ₹17.2 crore in FY26 (DRHP p.136).

By product: as-cast aluminium castings were 95.38% of FY26 revenue, machining value-add 1.77% and heat treatment value-add 2.85% (DRHP p.134).

By place: Tamil Nadu brought 70.98% of FY26 revenue, Karnataka 5.12% and Maharashtra 4.14% (DRHP p.138). The business chapter puts exports at ₹0.09 crore, 0.08% of FY26 revenue, to Flowserve Control Valves GmbH in Germany and Hitachi Energy USA (DRHP p.138); the restated accounts show export sales of ₹0.53 crore in FY26 (DRHP p.204).

Best Cast IT customers: how concentrated the revenue is

Source: DRHP p.25, DRHP p.146. Revenue does depend on a few customers: the largest customer brought ₹51.8 crore of FY26 revenue (DRHP p.25). The table does not name the customer. Relationships are on purchase orders with no long-term volume commitments (DRHP p.25). Of 33 customers in FY26, 19 had bought in the year before (DRHP p.146). The management discussion states that the business is not dependent on any single customer (DRHP p.246).

Read from the filing: HL Mando Anand India Private Limited holds ₹39.5 crore of the ₹77.1 crore order book at August 31, 2026, about 51.3% of it (our arithmetic, DRHP p.143).

On the supply side, the largest supplier was 14.98% of FY26 purchases and the top ten 54.42% (DRHP p.26).

04The growth record

Best Cast IT financials: revenue, profit and margins

Source: DRHP p.100, DRHP p.185, DRHP p.186, DRHP p.187, converted from ₹ lakh. Revenue went from ₹91.7 crore in FY24 to ₹108.6 crore in FY26 and profit after tax from ₹3.9 crore to ₹7.5 crore (DRHP p.186). The company's EBITDA margin is worked on total income, and its EBITDA adds interest cost, depreciation and tax to profit before the associate's share (DRHP p.100, DRHP p.213).

Our arithmetic over FY24 to FY26: revenue grew about 8.8% a year and profit after tax about 39.4% a year (our arithmetic, DRHP p.186); EBITDA grew about 33.3% a year (our arithmetic, DRHP p.100). EBITDA margin moved from 9.57% to 14.46%, up 489 basis points, so from 9.6% to 14.5% rounded (DRHP p.100). Revenue rose 1.94% in FY25 and 16.19% in FY26 (DRHP p.100).

Profit after tax includes the company's share of its associate's profit: ₹0.26 crore in FY24, ₹0.53 crore in FY25 and ₹0.48 crore in FY26, 6.46% of FY26 profit (DRHP p.186, DRHP p.218).

The year ends on March 31 throughout. The restatement changed FY25 a great deal: profit before the associate's share was ₹7.1 crore audited and ₹5.5 crore restated, and net worth at March 31, 2025 was ₹27.1 crore audited and ₹14.9 crore restated (DRHP p.193, DRHP p.194). The adjustments included gratuity, interest on late taxes and on dues to small suppliers, research costs that had been shown as an asset, a ₹0.79 crore investment written off, a ₹5.8 crore provision for old doubtful debts and ₹3.5 crore of past income tax demands (DRHP p.193, DRHP p.194). There are no audit qualifications needing adjustment (DRHP p.182).

What sits around the record:

• Cash: operating cash flow was ₹12.0 crore in FY26, ₹10.0 crore in FY25 and ₹13.8 crore in FY24 (DRHP p.187). In FY26 inventories absorbed ₹7.7 crore while trade payables supplied ₹8.4 crore (DRHP p.187).
• Other income was ₹0.10 crore in FY26, 1.03% of profit before tax, so 1.0% rounded (DRHP p.208).
• Debt: borrowings were ₹14.3 crore at March 31, 2026, debt to equity 0.53 times, so 0.5× (DRHP p.185, DRHP p.100), and net of ₹0.42 crore of cash about 0.9× FY26 EBITDA (our arithmetic, DRHP p.185, DRHP p.100). Return on capital employed was 32.26%, so 32.3% rounded (DRHP p.100). Finance cost was ₹3.7 crore in FY26 (DRHP p.186).
• Customers and suppliers: the largest customer was 47.72% of FY26 revenue, so 47.7% rounded, the top five 75.28%, so 75.3%, and the top ten 84.11%, so 84.1% (DRHP p.25); the top ten suppliers were 54.42% of FY26 purchases, so 54.4% (DRHP p.26).
• Related parties: purchases from enterprises in which key managers have significant influence were ₹3.6 crore in FY26 (DRHP p.215).
• Receivables: about 32 days of revenue at March 2024 and about 51 days at March 2026 (our arithmetic, DRHP p.185, DRHP p.186).
• Contingent liabilities: ₹0.82 crore, a GST input tax credit demand under appeal; no capital commitments (DRHP p.57).
• Order book: ₹77.1 crore at August 31, 2026 (DRHP p.143).
• Capacity: casting utilisation was 68.43% in FY26, so 68.4% rounded (DRHP p.145).
• Statutory dues: ₹6.1 crore of statutory dues payable at March 31, 2026 (DRHP p.200).
• Pay: directors' remuneration was ₹2.2 crore in FY26 (DRHP p.205).
• Use of the issue: ₹18.0 crore of the fresh issue is for debt repayment and ₹16.5 crore for equipment (DRHP p.86).
• Cases: one civil suit and seven income tax demands against the promoters; no criminal cases (DRHP p.250, DRHP p.251).

05What the growth is made of

Revenue rose ₹16.9 crore from FY24 to FY26 (our arithmetic, DRHP p.186). By the industry served (our arithmetic, DRHP p.136):

• Others: up ₹12.6 crore, from ₹4.6 crore to ₹17.2 crore.
• Power transmission and distribution: up ₹4.7 crore, from ₹6.8 crore to ₹11.5 crore.
• Industrial (flow control and engineering): up ₹0.87 crore.
• Energy (power generation): down ₹0.61 crore.
• Automotive: down ₹0.60 crore, from ₹71.7 crore to ₹71.1 crore.

Volume: castings poured fell from 2,540 tons in FY24 to 2,441 tons in FY25 and 2,246 tons in FY26, while alloy produced rose from 2,007 tons to 2,107 tons and machining hours from 3,228 to 3,555 (DRHP p.145).

Realisation, read from production: as-cast revenue per kg poured was about ₹344 in FY24 and about ₹461 in FY26 (our arithmetic, DRHP p.134, DRHP p.145). Raw material consumed per kg poured went from about ₹227 to about ₹333 over the same years (our arithmetic, DRHP p.186, DRHP p.145). Tons poured are production, not tons sold, and finished goods stock rose from ₹2.9 crore to ₹8.5 crore over the period (DRHP p.202), so this arithmetic does not separate price from mix.

The document gives no quantities sold and no prices, so the increase cannot be split into volume and price. That is the finding. The management discussion puts FY26 growth down to "an increase in volume of sales of Aluminium castings and machined components" and to enhanced production capacity (DRHP p.240); installed casting capacity is shown at 3,282 tons in all three years (DRHP p.145).

06Earnings quality

The item that needs explaining is how the margin rose. Gross margin, revenue less raw material and the change in stock, fell from about 38.8% in FY24 to about 35.7% in FY26 (our arithmetic, DRHP p.186). The EBITDA margin rose because employee cost fell from ₹15.6 crore to ₹13.6 crore and other expenses from ₹11.7 crore to ₹10.1 crore while revenue rose (DRHP p.186). Labour expenses fell from ₹8.5 crore to ₹7.4 crore (DRHP p.205). Stock building counted for a credit of ₹5.1 crore in FY26 and ₹5.0 crore in FY25 (DRHP p.186).

On the cash side, trade payables rose from ₹13.2 crore to ₹24.4 crore over two years, with dues to parties other than small enterprises up from ₹0.58 crore to ₹10.9 crore (DRHP p.200). Interest on late payments to small suppliers was ₹0.28 crore in FY26 (DRHP p.206). Statutory dues payable were ₹6.1 crore at March 2026 (DRHP p.200), and provident fund and ESIC payments for some months of FY26 were made 100 to 211 days late (DRHP p.35, DRHP p.36).

07The balance sheet

At March 31, 2026 total assets were ₹85.7 crore: property, plant and equipment ₹28.2 crore (including freehold land of ₹8.7 crore bought in FY25), inventories ₹21.1 crore, trade receivables ₹15.3 crore, a capital advance of ₹9.0 crore, the associate investment ₹3.6 crore, deposits and other non-current assets ₹2.5 crore, short-term advances ₹2.4 crore and cash ₹0.42 crore (DRHP p.185, DRHP p.209). The capital advance was paid towards acquiring immovable property (DRHP p.243). The land is vacant land at Papparambakkam village, Thiruvallur district, pledged to Aditya Birla Finance (DRHP p.216).

Against them: trade payables ₹24.4 crore, other current liabilities ₹12.0 crore (₹6.1 crore of it statutory dues and ₹3.5 crore customer advances), long-term borrowings ₹8.6 crore, short-term borrowings ₹5.7 crore, provisions ₹8.1 crore and net worth ₹26.9 crore (DRHP p.185, DRHP p.200).

Borrowings of ₹14.3 crore at March 2026 were: Aditya Birla Finance term loan ₹4.6 crore at 11.50%, Indian Bank cash credit ₹4.0 crore at 11.15%, Kabirdass Murali's interest-free loan ₹2.4 crore, Mohindra Finvest ₹1.3 crore at 2.50%, Standard Chartered unsecured loan ₹0.96 crore at 14.50%, HDFC Bank car loan ₹0.88 crore and Indian Bank GECLS ₹0.25 crore (DRHP p.216, DRHP p.217). The Indian Bank facilities carry collateral of two flats owned by Kabirdass Murali and personal guarantees of Kabirdass Murali, Shreyas Murali Kabirdass and Hari Priya Murali (DRHP p.217).

Source: DRHP p.86, DRHP p.185, DRHP p.225. The capitalisation statement leaves the post-issue column blank (DRHP p.225). The loans picked for repayment, at September 27, 2026, are Aditya Birla Finance ₹4.1 crore, a Bank of Baroda term loan ₹4.5 crore and a Bank of Baroda cash credit ₹9.5 crore, ₹18.0 crore together (our arithmetic, DRHP p.93). Both Bank of Baroda facilities were sanctioned on April 30, 2026 and disbursed on June 15, 2026, after the latest balance sheet (DRHP p.93). Prepayment charges are to come from internal funds or general corporate purposes (DRHP p.92).

08What the money is for

Best Cast IT IPO objects: what the money is for

Source: DRHP p.86, DRHP p.94. The rupee size of the fresh issue depends on a price not yet set, so the share of each object cannot be worked out (DRHP p.86).

Machinery and equipment, ₹16.5 crore: ten Haitian vertical machining centres for ₹8.3 crore at a discount from ₹9.3 crore, a vertical turning machine for ₹2.5 crore, a CNC lathe for ₹1.9 crore, an X-ray inspection system ₹1.2 crore, a Mitutoyo coordinate measuring machine ₹1.1 crore, a helium leak test station ₹0.69 crore, a diesel generator ₹0.64 crore, and contour and profile measuring equipment ₹0.32 crore (DRHP p.88 to DRHP p.91).

The purpose stated is precision machining, making dies and fixtures in-house, and checking parts for hidden defects (DRHP p.88). Quotations date from August 2026 and are valid for 60 to 180 days; no orders have been placed (DRHP p.36, DRHP p.88 to DRHP p.91). Taxes, freight and installation are to come from internal accruals (DRHP p.91).

Debt repayment, ₹18.0 crore: the three loans named in section 06, outstanding at ₹18.0 crore on September 27, 2026 (DRHP p.93). The Aditya Birla loan was taken for land purchase and the Bank of Baroda loans for working capital (DRHP p.93). The company has yet to obtain the lenders' consent for the issue and for prepayment (DRHP p.92).

All of both objects is scheduled for FY27 (DRHP p.87). The objects have not been appraised by any bank or financial institution, and no monitoring agency will be appointed because the issue is below ₹50 crore (DRHP p.95).

Into the business the fresh issue of up to 36,00,000 shares, at a price not yet set (DRHP p.86). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

Best Cast IT IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 36,00,000 shares of ₹10, and the document marks the offer for sale "NOT APPLICABLE AS THE ENTIRE ISSUE CONSTITUTES FRESH ISSUE OF EQUITY SHARES" (DRHP p.1, AP p.1). The promoters and the promoter group will not take part in the issue (DRHP p.84).

10Promoters

The promoters are Kabirdass Murali and Shreyas M Kabirdass (DRHP p.173). The document states that Kabirdass Murali is the father of Shreyas M Kabirdass (DRHP p.164). Kabirdass Murali holds 83,53,053 shares, 87.93% of the company, and Shreyas M Kabirdass 93,490 shares, 0.98% (DRHP p.78).

Kabirdass Murali, 60, is Chairman and Managing Director, a director since March 23, 1987, with over 38 years in aluminium gravity die casting and precision engineering (DRHP p.162, DRHP p.163). Shreyas M Kabirdass, 28, is Whole-Time Director, a director since March 14, 2019, with a Bachelor of Engineering in Manufacturing Engineering from Anna University (DRHP p.162, DRHP p.163). The promoter group table lists Vasantha Kabirdass as Kabirdass Murali's mother, Hari Priya Murali as spouse, and Late Manohar Kabirdass as brother (DRHP p.175). Hari Priya Murali left the board on July 15, 2026 (DRHP p.167).

Pay: Kabirdass Murali was paid ₹1.8 crore and Shreyas M Kabirdass ₹0.35 crore in FY26 (DRHP p.165). The Managing Director's terms are ₹18,00,000 a month for five years from February 1, 2023 (DRHP p.165). Directors' remuneration in all was ₹2.2 crore in each of FY24, FY25 and FY26 (DRHP p.214). Remuneration payable to directors was ₹1.2 crore at March 31, 2026 (DRHP p.215).

Loans: Kabirdass Murali's interest-free loan to the company stood at ₹9.4 crore at March 2024, ₹8.5 crore at March 2025 and ₹2.4 crore at March 2026, under a sanction of ₹15.0 crore (DRHP p.215, DRHP p.217). On November 20, 2025 ₹4.5 crore of it was converted into 45,00,000 shares at ₹10 each, under a loan conversion agreement dated May 14, 2024 (DRHP p.74).

Other businesses: Kabirdass Murali is a director and shareholder of Kabirdass Aluminium Private Limited and Bestcast Metaverse Limited and a designated partner of Gran Hale LLP; Shreyas M Kabirdass holds the same roles and is also a designated partner of Open Hale LLP (DRHP p.173, DRHP p.174). The promoter group also includes Green Home Farms & Resorts Private Limited, Green Homelandscape (Hyderabad) Private Limited and Green Home Villas India Private Limited (DRHP p.176).

Kabirdass Aluminium Private Limited is in a similar line of business, and the company has no non-compete agreement with it (DRHP p.29, DRHP p.178). Bestcast Metaverse Limited, formerly Kabirdass Motor Company Private Limited, works on metaverse gaming with blockchain, virtual currencies and non-fungible tokens; Kabirdass Murali holds 49.49% of it and the company 22.29% (DRHP p.160, DRHP p.201).

Guarantees and pledges: the promoters and promoter group members guarantee the company's bank loans (DRHP p.174, DRHP p.217). No promoter shares are pledged (DRHP p.81).

Cases: one civil suit for ₹0.55 crore of apartment maintenance dues against Kabirdass Murali, which Kabirdass Murali disputes, and seven income tax demands of ₹0.82 crore in all against the promoters; no criminal or regulatory cases (DRHP p.250, DRHP p.251).

Promoter economics: Kabirdass Murali's holding was built from transfers and allotments at ₹10 a share or for nothing (gifts, a 1992 bonus): allotments in 1993, 1994, 1996 and 2009, purchases of 19,46,790 shares from Late Manohar Kabirdass in September 2018, 20,49,990 shares from Nakshatra Manohar and Shravan Manohar on June 14, 2024, rights shares in March and June 2024, and the 45,00,000 conversion shares in November 2025 (DRHP p.79 to DRHP p.81).

The abridged prospectus puts the average cost at ₹9.99 a share for Kabirdass Murali and ₹9.93 for Shreyas M Kabirdass (AP p.7). Kabirdass Murali sold shares at ₹10 to eight other holders between August 2024 and December 2025, and transferred 7,50,000 shares to Shreyas M Kabirdass in September 2024 (DRHP p.80, DRHP p.81).

11Who already owns it

Best Cast IT promoter holding before and after the IPO

Source: DRHP p.76, DRHP p.77, DRHP p.78, DRHP p.73; the after-issue column and the nine other holders' share are our arithmetic. There are 95,00,000 shares of ₹10 before the issue and 13 shareholders (DRHP p.51, DRHP p.78). If all 36,00,000 new shares are issued the total becomes 1,31,00,000 shares (our arithmetic, DRHP p.51), and the promoters' 88.91% becomes about 64.5%, so 88.9% → 64.5% (our arithmetic, DRHP p.78). Promoters and promoter group together go from 89.96% to about 65.2% (our arithmetic, DRHP p.76). The document leaves the after-issue percentages blank (DRHP p.78).

Arwa Umesh bought 6,66,500 shares from Shreyas M Kabirdass at ₹10 each on September 20, 2024 (DRHP p.73). Eight public holders, including Singhvi Heritage LLP with 9,000 shares, bought from Kabirdass Murali at ₹10 between August 2024 and December 2025 (DRHP p.73). No fund holds shares. Up to 26,20,000 of Kabirdass Murali's shares are to be locked in for three years as the minimum promoters' contribution (DRHP p.81, DRHP p.82).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹91.7 crore in FY24 to ₹108.6 crore in FY26 and profit after tax from ₹3.9 crore to ₹7.5 crore (DRHP p.186).
• Receivables: about 32 days of revenue in FY24 and about 51 days in FY26 (our arithmetic, DRHP p.185, DRHP p.186).
• Directors' pay: ₹2.2 crore in FY24 and ₹2.2 crore in FY26 (DRHP p.214).
• Family arrangement: Nakshatra Manohar and Shravan Manohar resigned as whole-time directors on June 10, 2024 "as per Memorandum of Family Arrangements", and their 20,49,990 shares passed to Kabirdass Murali on June 14, 2024 (DRHP p.166, DRHP p.80).
• Rights issues: 2,25,000 shares on March 27, 2024 and 6,75,000 on June 21, 2024, both at ₹10 to Kabirdass Murali (DRHP p.71).
• Loan converted: 45,00,000 shares at ₹10 to Kabirdass Murali on November 20, 2025, against ₹4.5 crore of loan (DRHP p.74).
• Bonus issue: none since March 30, 1992 (DRHP p.70).
• Share split: none in the last year (DRHP p.74).
• Pre-IPO placement: none; the only primary issuance in the 18 months before filing is the loan conversion at ₹10 (DRHP p.105).
• Land and new debt: freehold land of ₹8.4 crore added in FY25 with an Aditya Birla Finance loan, and Bank of Baroda loans of ₹14.5 crore sanctioned in April 2026 (DRHP p.209, DRHP p.93).
• Restatement: FY25 profit before the associate's share cut from ₹7.1 crore audited to ₹5.5 crore restated (DRHP p.193).
• Board and officers: Arunkumar P joined as independent director on May 1, 2024, Usha Krishnamurthy joined on April 17, 2025 and left on January 5, 2026, Sangeetha Arunachalam joined on April 2, 2026 and Supraja Abishek Parasar on August 2, 2026 (DRHP p.166, DRHP p.167). The company secretary and CFO resigned on June 14, 2026, and a new CFO and company secretary were appointed on July 9, 2026 (DRHP p.172). The audit committee was formed on August 6, 2026 (DRHP p.168).
• Company law matters: four loan charges were not registered, consolidated accounts were not filed for FY15 to FY25, and some resolutions were not filed; the company and directors have applied for adjudication and compounding (DRHP p.27, DRHP p.28).
• Objects clause: on August 1, 2026 the share broking and commodity dealing objects were deleted from the memorandum (DRHP p.158).
• Auditor: Ramesh & Soundararajan, re-appointed for five years from October 1, 2023; no other change in the last three years (DRHP p.63).
• Dividend: none in the last three financial years (DRHP p.179).

13Capacity and expansion

Source: DRHP p.145, DRHP p.88. Utilisation is for both plants together, as certified by a chartered engineer (DRHP p.145). Casting utilisation went from 77.39% in FY24 to 74.37% in FY25 and 68.43% in FY26 (DRHP p.145). The document does not split capacity by plant.

The issue-funded equipment is scheduled for FY27 (DRHP p.87). The document does not state how many machining hours or tons the new machines add, so the addition cannot be put in the company's units. Plant and machinery additions were ₹12.2 crore in FY26, mostly moulds, dies and machinery moved from capital work in progress (DRHP p.209, DRHP p.243). The step from capacity to revenue cannot be made from the filing.

14Market size and industry structure

Best Cast IT industry: market size and growth

As claimed: the company did not commission an industry report. The chapter says its information "has been extracted from various websites and publicly available documents" and that neither the company nor anyone connected with the issue has verified it (DRHP p.111). It quotes the IMF's April 2026 World Economic Outlook, IBEF, The Business Research Company, Mordor Intelligence, Business Research Insights and IMARC Group (DRHP p.114, DRHP p.119, DRHP p.121, DRHP p.123).

At the widest level, The Business Research Company puts the global aluminium casting market at US$73.64 billion in 2025 and US$79.26 billion in 2026, and projects US$104.57 billion by 2030 at 7.2% a year (DRHP p.119). Mordor Intelligence values the India automotive parts aluminium die casting market at US$1.71 billion in 2025 and projects US$1.83 billion in 2026 and US$2.61 billion by 2031, 7.29% a year (DRHP p.119).

IMARC puts the India precision engineering market at US$536.0 million in 2025 and projects US$996.1 million by 2034 (DRHP p.123).

The part that is addressable: the company sells aluminium gravity die castings, 65.47% of them to the automotive sector and the rest to power equipment, valve, pump and other makers (DRHP p.25). The Mordor figure covers automotive die castings of all processes; pressure die casting held 68.74% of it in 2025, and gravity die casting sits in the remaining share with other processes (DRHP p.120, DRHP p.121). The chapter gives no separate size for gravity die casting, for castings sold to electrical equipment makers, or for South India.

What the company is today: FY26 revenue of ₹108.6 crore, of which automotive ₹71.1 crore (DRHP p.186, DRHP p.25). The chapter states the market in US dollars and gives no conversion for these figures, so this study does not work out a market share.

Size over time: the global aluminium casting market grew at 7.6% from 2025 to 2026 by The Business Research Company's figures (DRHP p.119). India's real GDP is estimated to grow 7.6% in FY 2025-26 (DRHP p.114). The Indian auto component industry had turnover of ₹6,73,000 crore in FY25, 14% a year from FY20 to FY25, and exports of ₹1,95,726 crore in FY25 (DRHP p.125). Supplies to vehicle makers were about 66% of that turnover, the aftermarket about 11% and exports 22% (DRHP p.125). The chapter quotes a McKinsey report projecting the auto component industry at US$200 billion by 2030 (DRHP p.125).

Segments: the Mordor report splits the market by process, application, vehicle, alloy, buyer and region (DRHP p.120). Engine parts were 45.98% in 2025 and passenger cars 54.80%; Al-Si alloys were 63.62%; sales to vehicle makers and their first-tier suppliers were 74.88%; West India led with 39.40%, and the report projects South India growing fastest at 8.39% a year from 2026 to 2031 (DRHP p.120). The company sells engine, brake and steering parts to such buyers from Chennai (DRHP p.127, DRHP p.128).

What drives demand: the chapter names electric vehicle output, which it says grew 76% a year from 2020 to 2024, lighter vehicles under fuel economy and Bharat Stage VI rules, and more aluminium parts per car, 150 to 200 against about 100 earlier (DRHP p.120). The report claims aluminium content per vehicle rising from 29 kg in 2024 toward 160 kg by 2030 (DRHP p.120). Government support includes the auto and auto component PLI scheme of ₹25,938 crore for FY23 to FY27 (DRHP p.125).

Structure: the business chapter describes large integrated foundry groups, mid-sized independent die casters and captive foundries run by vehicle makers, competing on quality, precision, delivery and price, but names none of them (DRHP p.147). The industry chapter mentions ASK Automotive's electric vehicle revenue growth of 133% and Hindalco's US$10 billion expansion (DRHP p.120, DRHP p.121). It says the cost of 6,000 to 9,000 tonne presses keeps new entrants out of pressure casting, and that ISO 9001 and IATF 16949 certification covers more than 85% of installed capacity in India (DRHP p.119, DRHP p.121). The auto component sector has an unorganised part that mainly serves the aftermarket (DRHP p.125).

Inputs and trade: primary aluminium traded between US$2,160 and US$2,480 a tonne in 2024 and India's industrial power tariff rose 6% (DRHP p.121). Leading die casters are raising recycled metal toward 80% of input, and End-of-Life Vehicle Rules 2025 are said to improve scrap supply (DRHP p.121, DRHP p.119). Quarterly price adjustment clauses are common in contracts with vehicle makers (DRHP p.121). The company buys aluminium and alloying elements from suppliers in India and outside India, without long-term contracts (DRHP p.144, DRHP p.26).

Rules: the business works under the Factories Act, the Aluminium (Control) Order, 1970 issued under the Essential Commodities Act, pollution control laws and labour codes (DRHP p.151, DRHP p.152). Each plant has a factory licence, pollution consents from the Tamil Nadu Pollution Control Board and a fire NOC (DRHP p.254, DRHP p.255). Its ISO 9001:2015 and IATF 16949:2016 certificates are issued by Quality Austria (DRHP p.255).

What the chapter says can go wrong: aluminium price swings, power and coal shortages and currency moves squeeze die casters' margins (DRHP p.121). Gravity die casting's share erodes as the cost per part falls for high-pressure equipment (DRHP p.121). The risk factors add that vehicle demand is cyclical and that a shift to electric vehicles may need new products (DRHP p.26). The chapter does not discuss pricing, seasonality or competition in gravity casting for electrical equipment.

15Competitive position

Best Cast IT competitors

Source: DRHP p.100, DRHP p.103, DRHP p.104, converted from ₹ lakh. Rico Auto's revenue is about 22.8 times the company's, Alicon Castalloy's about 16.4 times and Poojaa Precision's about 2.7 times (our arithmetic, DRHP p.103, DRHP p.104). Rico Auto and Alicon are shown consolidated and Poojaa Precision standalone (DRHP p.98).

What the company puts forward: in-house alloy making and tool room, more than five decades in gravity die casting, IATF 16949 certification, two plants covering casting to testing, and long relationships with vehicle makers and suppliers (DRHP p.134 to DRHP p.137, DRHP p.147). Against that: two leased plants, one lease ending December 31, 2026; one customer at 47.72% of revenue; no long-term customer or supply contracts; and a promoter group company in the same line of business (DRHP p.149, DRHP p.25, DRHP p.26, DRHP p.29).

16Peers the company named

Peers named in the offer document: Rico Auto Industries Limited, Alicon Castalloy Limited and Poojaa Precision Engg. Limited (DRHP p.99).

Rico Auto and Alicon Castalloy are auto component makers many times the company's size with thinner margins; Poojaa Precision is closest in size, about 2.7 times its revenue, with a higher margin (DRHP p.103, DRHP p.104). The document gives their P/E as 35.44, 34.73 and 34.40 on September 25, 2026, an average of 34.86 (DRHP p.98). The company's FY26 EPS is ₹11.32 on ₹10 shares (DRHP p.99). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Best Cast IT IPO risks

Customers: one customer brought 47.72% of FY26 revenue and ten customers 84.11% (DRHP p.25) → orders come on purchase orders with no committed volumes, and loss of a key customer would leave tooling and capacity idle → the largest customer brought ₹51.8 crore in FY26 (DRHP p.25).

Business: vehicle demand: automotive was 65.47% of FY26 revenue and has not grown in three years (DRHP p.25) → vehicle demand is cyclical and electric vehicles need different parts → automotive revenue was ₹71.7 crore in FY24 and ₹71.1 crore in FY26 (DRHP p.25).

Business: premises: both plants and the registered office are leased (DRHP p.26, DRHP p.149) → losing a lease means moving a foundry → the Unit-1 lease ends December 31, 2026 (DRHP p.149).

Suppliers: aluminium is the main input and prices are not fixed by long-term contracts (DRHP p.26) → price rises may be passed on only with a lag → raw material consumed was 68.86% of FY26 total income, against 62.81% in FY24 (DRHP p.237).

Financial: debt and dues: new Bank of Baroda loans were drawn after March 2026 and statutory dues of ₹6.1 crore were payable at March 2026 (DRHP p.93, DRHP p.200) → the issue's ₹18.0 crore for debt goes mostly to loans taken this year → provident fund and ESIC payments for FY26 months were up to 211 days late (DRHP p.35, DRHP p.36).

Legal: tax: 25 tax cases involve ₹6.6 crore against the company, the largest an income tax demand of ₹1.97 crore for AY 2025 (DRHP p.249) → adverse orders would mean payments and penalties → a GST demand of ₹0.82 crore is shown as a contingent liability under appeal (DRHP p.57).

Regulation: company law and records: some corporate records since 1974 cannot be traced, and the company did not register four loan charges or file consolidated accounts from FY15 to FY25 (DRHP p.27, DRHP p.28) → penalties may follow → applications for adjudication and compounding are pending (DRHP p.27, DRHP p.28).

Promoters: Kabirdass Aluminium Private Limited, a promoter group company, is in a similar line of business with no non-compete agreement (DRHP p.29) → the two may compete for customers → after the issue the promoters would hold about 64.5% (our arithmetic, DRHP p.78).

Issue-specific: the equipment has not been ordered and lender consents for the issue, including Bank of Baroda's, are pending (DRHP p.36, DRHP p.32) → delays may shift the schedule → ₹16.5 crore of orders are yet to be placed (DRHP p.37).

18Litigation and regulatory matters

Cases against Best Cast IT and its promoters

Criminal: none against the company, promoters, directors or key managers (DRHP p.248, DRHP p.250, DRHP p.251). Regulatory: no actions by statutory or regulatory authorities against the company, promoters or directors (DRHP p.248, DRHP p.250). By the company: a writ petition in the Madras High Court against a GST order of November 30, 2023, arguing the same discrepancies were already closed (DRHP p.248, DRHP p.249). Directors: one income tax demand of ₹1,930 against Sangeetha Arunachalam (DRHP p.250). Creditors: four material creditors, all small enterprises, were owed ₹10.1 crore at March 31, 2026 (DRHP p.251). Charges: a car loan charge was inadvertently not registered (DRHP p.221).

19Related-party transactions

Source: DRHP p.214, DRHP p.215, converted from ₹ lakh. The table groups counterparties by type and does not say which enterprise each amount belongs to; the related parties listed include Kabirdass Aluminium, Bestcast Metaverse and Shareway Securities Private Limited, a company with a common director (DRHP p.214). Balances at March 31, 2026: loan from key managers ₹2.4 crore, remuneration payable ₹1.2 crore, a loan to the associate ₹0.20 crore and customer advances from an enterprise ₹0.53 crore (DRHP p.215). The loan to the associate was ₹4.5 crore at March 2024 and was recovered in FY25 (DRHP p.215, DRHP p.244).

What appeared or changed in the two years before filing: the promoter's loan was largely converted into shares in November 2025, sales to related enterprises stopped after FY24, an advance of ₹4.5 crore was received from an enterprise in FY25, and an advance given to and interest income from related enterprises appear in FY26 (DRHP p.74, DRHP p.214, DRHP p.215). The company says these transactions were at arm's length (DRHP p.28).

20What the offer document does not say

The largest customers are not named in the concentration table. Quantities sold and prices are not given, so growth cannot be split into volume and price. Margins by product or by industry served are not given. What the "Others" industry line of ₹17.2 crore in FY26 is, is not explained (DRHP p.136).

What the ₹9.0 crore capital advance and the ₹8.7 crore of vacant land are for is not described beyond "acquisition of immovable property" (DRHP p.243, DRHP p.209). The capacity the new machines add is not stated in hours or tons. Which related enterprise each related-party amount belongs to is not stated (DRHP p.214). Financial details of the group companies are left to the company website (DRHP p.177).

The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.86). The after-issue shareholding is blank (DRHP p.78).

Some inconsistencies are recorded as document matters, not business ones: EPS is ₹11.32 for FY26 and ₹9.21 for FY24 in the restated profit and loss statement but ₹8.51 for FY26 in the abridged prospectus and ₹11.32 for FY24 in the basis for issue price (DRHP p.186, AP p.5, DRHP p.97); export revenue is ₹0.09 crore in the business chapter and ₹0.53 crore in the restated accounts (DRHP p.138, DRHP p.204);

the risk factors say the trademark has been applied for while the business and approvals chapters show it registered (DRHP p.33, DRHP p.147, DRHP p.256); the risk factors and objects say lender consents are pending while the indebtedness chapter says they have been obtained (DRHP p.32, DRHP p.92, DRHP p.226); the litigation summary shows one criminal case filed by the company while the litigation chapter shows none (DRHP p.33, DRHP p.248);

the promoters' total is printed as 85,46,543 shares in one table and 84,46,543 in another (DRHP p.78, DRHP p.173); the management discussion says the business does not depend on a single customer while one customer brought 47.72% of FY26 revenue (DRHP p.246, DRHP p.25); Unit-2 is at Plot No. 28 in the business chapter and Door No.

28A in the factory licence (DRHP p.127, DRHP p.255); and Shreyas M Kabirdass's holding in Bestcast Metaverse is printed as 22.29% against 34,02,000 of 1,39,09,375 shares (DRHP p.160).

21Five questions for management

1. What tons of castings were sold, and at what average price per kg, in FY24, FY25 and FY26, given that tons poured fell from 2,540 to 2,246 while revenue rose?
2. Who are the customers behind the "Others" line that rose from ₹4.5 crore to ₹17.2 crore in FY26, and is the largest customer HL Mando Anand India?
3. What is the ₹9.0 crore capital advance for, what is planned on the vacant land at Papparambakkam, and how will it be paid for?
4. What were the Bank of Baroda loans of ₹14.5 crore drawn in June 2026 used for, and what will borrowings be after the ₹18.0 crore repayment?
5. Has the Unit-1 lease been renewed beyond December 31, 2026, and on what terms?

2Sources and cited facts

This study was read from 2 documents the company filed. The 190 figures it cites are listed under the document each came from, with the page and the sentence as printed.