Classic Electrodes (India) Ltd(CLASSICEIL)

NSE: CLASSICEIL

₹ 46+4.07%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 83 crUpdated: 24 Oct 2026

About

Classic Electrodes (India) Ltd manufactures welding electrodes, MIG wire, and flux-cored wire, and also trades in allied welding consumables, with operations in West Bengal and Haryana. The company reported FY26 consolidated revenue of ₹242.97 crores, growing 18.5% year-on-year from ₹206 crores in FY25. Manufacturing contributed 73% of gross revenue in FY26, with the balance from trading.^[1][2][3]

Business segments

Manufacturing (welding electrodes, MIG wire, flux-cored wire) contributed 73% of gross revenue in FY26, up from 67% in FY25.^[2]
Trading in welding consumables and allied industrial equipment made up the remaining 27% of gross revenue in FY26, down from 33% in FY25.^[2]

Products

Core manufactured products are welding electrodes and MIG wire; the company also trades welding electrodes and allied industrial equipment through related party Jai Hanuman Industrial Corporation.^[3]
Flux-cored wire was commercially launched in September 2025 as a high-margin addition completing the welding consumables basket; installed capacity ~1,800 MT per annum as of Q3 FY26.^[4][5]
ERC Mk-V (Elastic Railway Clips) was added as a new product line for maintenance and repair of rail joints; commercial production commenced around July 2026.^[2][6]

Manufacturing operations

Kolkata unit (West Bengal) is the primary facility, generating ₹51.99 crores in Q1 FY27 (+6.93% YoY) and housing electrode, MIG wire and flux-cored wire lines.^[6]
Jhajjar unit (Haryana) is a newer facility focused on MIG wire for northern markets; revenue ₹6.01 crores in Q1 FY27, up 46.45% YoY.^[6]
Electrode installed capacity: 10,608 MT; utilisation rose from 73.82% in FY25 to 86.24% in FY26 (9,148 MT produced).^[2]
MIG wire installed capacity (West Bengal): 7,000 MT; production rose from 3,240 MT in FY25 to 5,207 MT in FY26, utilisation up from 68.41% to 74.38%.^[2]
Flux-cored wire installed capacity: 2,500 MT; utilisation was 13.98% in FY26 (350 MT produced), up from ~15-20% initial ramp in Q2 FY26.^[2][5]
Wire-drawing automation at Unit 1 completed October 2025 delivered ~20-25% improvement in output and enabled production of thinner-gauge specialised wires.^[4][5]

Key operating numbers

Combined capacity utilisation across both plants was ~70-75% in Q3 FY26, up from prior quarters following automation and debottlenecking.^[4]
FY26 consolidated revenue: ₹244 crores, up 18.48% YoY from ₹206 crores in FY25, but below management guidance of ₹260-275 crores.^[2]
Q1 FY27 consolidated revenue: ₹58 crores, up 10.01% YoY from ₹52.72 crores in Q1 FY26; Kolkata ₹51.99 crores, Jhajjar ₹6.01 crores.^[6]
Flux-cored wire contributed ~₹4 crores to FY26 topline at ~13.98% utilisation; management guided ₹20 crores from this line in FY27.^[2]

Raw materials and related parties

Wire supplied by related party Kritika Wires Ltd (FY26 turnover ₹69,431.87 lakhs) is a key input for welding electrodes and MIG wire; shareholder approval sought for RPTs up to ₹50 crores per annum in FY27.^[3]
Related party Jai Hanuman Industrial Corporation (FY26 turnover ₹715.96 lakhs) is engaged in trading, supply and manufacturing of welding electrodes and allied industrial equipment.^[3]

Customers and distribution

End-markets include infrastructure, fabrication and industrial segments; post-monsoon infrastructure and fabrication activity drives Q3 seasonality, with H2 historically ~60% of full-year revenue.^[4][5]
B2C running order book was ~₹15 crores as of October 2025; working capital cycle was 90-110 days in H1 FY26.^[5]
Export market entry was being explored as of Q2 FY26, with attendance at a Dubai exhibition in January 2026 cited as a first step toward neighbouring-country exports.^[5]

Expansion and capex

ERC Mk-V (Elastic Railway Clips) product line: commercial production commenced ~July 2026; management guided ₹30-35 crores revenue in FY27 and peak annual potential of ₹50+ crores, with gross margins of 25-28%.^[2]
New manufacturing facility in South or West India (near Nagpur or Chennai) is under land identification; not expected to be operational before FY28.^[2][5]
Flux-cored wire capacity expansion from the current 2,500 MT is possible in FY28 depending on market response.^[2]
Classic Electrodes invested ~₹1.8-1.9 crores in associate company HM Power (cables and conductors) for a 14-15% stake; HM Power commenced commercial production on 1 April 2026 and targets ₹200 crores revenue in FY27.^[2]

Recent developments

FY26 short-term borrowings fell to ₹1,861 lakhs from ₹5,208 lakhs in FY25; total debt dropped from ₹54.38 crores to ₹19.51 crores, aided by IPO proceeds deployed in debt repayment.^[2]
Q1 FY27 (April-June 2026) revenue growth slowed to 10% YoY, attributed to geopolitical disruption from the US-Iran conflict that affected commodity supply chains and demand from industrial and infrastructure customers.^[6]
June 2026 was the strongest monthly sales month of Q1 FY27 at ₹20.96 crores, up from ₹19.01 crores in April 2026, with management citing improving order momentum.^[6]
FY27 consolidated revenue guidance: ₹330-350 crores, implying ~35-43% growth over FY26 actuals of ₹244 crores, conditional on geopolitical stabilisation.^[2]

Market Cap

₹83 Cr

High / Low

₹95 / 35

Stock P/E

7.0

Price / Book

1.0

Book Value

₹53

EPS

₹7.0

No. of Shares

1.8 Cr

ROCE

19.3%

ROE

18.0%

OPM

8.5%

Debt / Equity

0.20

Sales

₹243 Cr

Net Profit

₹13 Cr

Promoter holding

72.0%

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