SBCL - Shivalik Bimetal

📊 NSE: SBCL 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 13:14

💰 Financial Performance

Revenue Growth by Segment

The group achieved a consolidated revenue of INR 520.61 Cr in FY24, representing a 10.35% growth from INR 471.80 Cr in FY23. The bimetals segment saw 19.3% volumetric growth in FY24, while the resistors and shunts business is registering 8-10% growth, driven by high value-add components. Q2 FY26 revenue grew 8.09% YoY to INR 118.42 Cr.

Geographic Revenue Split

Export share stood at 56.22% as of H1 FY26, with revenue originating from 38 export markets including the US, EU, and Asia. Domestic sales account for the remaining 43.78%.

Profitability Margins

Gross margins improved to 45.84% in H1 FY26 from 42.88% in H1 FY25 (up 296 bps). PAT margins were 16.18% in FY24 and improved to 17.29% in H1 FY26. The improvement is driven by a shift toward high-value components and a reduction in lower-margin strip business.

EBITDA Margin

EBITDA margin stood at 23.00% for H1 FY26, a 306 bps increase from 19.94% in H1 FY25. Core profitability is bolstered by indigenous machine building and a rupee-based cost shield against European peers.

Capital Expenditure

The company has an existing asset base capable of supporting over INR 1,300 Cr in revenue, suggesting limited immediate need for greenfield capex. Tangible fixed assets stood at INR 166 Cr in H1 FY26, up from INR 125 Cr in FY24.

Credit Rating & Borrowing

CRISIL maintains a 'Stable' outlook. Interest coverage ratio is expected to strengthen to 27-28 times in FY25, compared to 24.97 times in FY24. The company operates with low gearing of 0.13 times as of March 31, 2024.

⚙️ Operational Drivers

Raw Materials

Nickel and copper are the primary raw materials, collectively accounting for approximately 50% of the overall production cost.

Import Sources

A large portion of raw material procurement is imported to ensure the quality of specialized alloys, though specific countries are not disclosed in the available documents.

Capacity Expansion

Current asset base supports >INR 1,300 Cr revenue. No further large debt-funded capital expenditure is planned in the medium term to maintain a strong financial risk profile.

Raw Material Costs

Raw material costs are approximately 54% of revenue (implied by 45.84% gross margin). The company employs order-backed processing for customized products to mitigate the risk of commodity price fluctuations.

Manufacturing Efficiency

SBCL utilizes a 'Dual-process technology' (Electron Beam Welding + Diffusion Bonding). It maintains 77 diffusion bonded bimetal grades compared to a global median of 10, indicating high technical efficiency.

📈 Strategic Growth

Expected Growth Rate

12-15%

Growth Strategy

Growth will be achieved through a shift toward high-value-add components in the resistors and shunts business, which is expected to add INR 40-50 Cr to the topline over three years with superior margins. The company is also targeting volumetric growth from Q4 FY25 based on high customer estimates in the smart meter and switchgear segments.

Products & Services

Thermostatic bimetal/trimetal strips, shunt resistors, high-value-add electrical components, and clad metals used in switchgears, energy meters, and EVs.

Brand Portfolio

Shivalik Bimetal Controls Limited (SBCL).

New Products/Services

Focus on complicated small-component business and high-value-add resistors which have longer-term life cycles than standard strip supply.

Market Expansion

Expansion is focused on 38 export markets and deepening partnerships with 300+ OEMs/Tier-1s in sectors like energy storage and smart meters.

Market Share & Ranking

SBCL is one of the few manufacturers of bimetal parts and shunt resistors in India, holding a leading market position in the niche linear bimetals segment.

Strategic Alliances

Innovative Clad Solutions Private Limited (ICSPL) is a Joint Venture with M/s Arcelor Mittal Stainless and Nickel Alloys (SBCL holds 16.01%).

🌍 External Factors

Industry Trends

The industry is shifting toward smart metering and energy storage systems. SBCL is positioning itself as a multi-site engineered-materials partner rather than just a bimetal specialist to capture this 21% CAGR trend.

Competitive Landscape

SBCL faces limited competition in India due to the niche nature of linear bimetals. Key global competitors exist but SBCL maintains a cost advantage via a rupee-based cost base.

Competitive Moat

Moats include a 24-month customer re-qualification period and a 15+ year average customer lock-in. The 'Dual-process fortress' (EBW + Diffusion Bonding) is difficult for competitors to replicate quickly.

Macro Economic Sensitivity

Growth is highly correlated with the performance of the electrical, electronics, and automotive industries. Sluggishness in the EV market delayed anticipated growth in FY24.

Consumer Behavior

Increased demand for accurate sensing and thermal control in EVs and smart homes is driving the shift toward high-precision shunt resistors.

Geopolitical Risks

Exposure to international trade policies such as the US IRA, EU Green Deal, and India's RDSS Program which drive demand for sensing and switching components.