SHILCTECH - Shilchar Tech.
📢 Recent Corporate Announcements
Shilchar Technologies Limited has announced the cessation of Mr. Zarksis Jahangir Parabia as a Non-Executive Independent Director. The change is effective from the close of business hours on March 13, 2026. This departure follows the completion of his second consecutive five-year term, totaling ten years of service on the board. The transition is a routine regulatory requirement under Indian corporate law regarding the tenure of independent directors.
- Mr. Zarksis Jahangir Parabia ceased to be a Director effective March 13, 2026.
- The cessation follows the completion of two consecutive 5-year terms as an Independent Director.
- The announcement is in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
- No other material reasons were cited for the departure beyond the statutory tenure limit.
Shilchar Technologies Limited has announced the successful passage of four key resolutions via postal ballot with over 99.99% shareholder approval. The resolutions include the appointment of Mr. Aatman Alay Shah as a Director and Whole-Time Director, along with the appointment of an Independent Director. Additionally, shareholders approved a remuneration increase for Mr. Aashay Alay Shah, another Whole-Time Director. The voting process concluded on March 6, 2026, with near-unanimous support from participating shareholders.
- Appointment of Mr. Aatman Alay Shah as Whole-Time Director approved with 99.998% votes in favor.
- Remuneration increase for Whole-Time Director Mr. Aashay Alay Shah passed with 99.997% majority.
- Appointment of an Independent Director secured 99.998% approval from participating shareholders.
- A total of 120-121 members participated in the remote e-voting process representing over 7.25 million votes for key resolutions.
Shilchar Technologies reported a robust year-on-year performance for Q3 FY26, with revenue from operations surging 56% to ₹156.46 crore compared to ₹100.25 crore in the previous year. Net profit for the quarter grew 21.7% YoY to ₹42.34 crore, although it saw a sequential decline of 7.8% from the September quarter. For the nine-month period ended December 2025, the company has delivered a strong net profit of ₹129.77 crore, up from ₹91.09 crore in the corresponding period last year. The company also successfully completed its listing on the National Stock Exchange (NSE) during this quarter.
- Revenue from operations grew 56% YoY to ₹156.46 crore in Q3 FY26.
- Net profit increased 21.7% YoY to ₹42.34 crore, while 9M FY26 profit reached ₹129.77 crore.
- Total income for the nine-month period ending Dec 2025 stood at ₹519.67 crore vs ₹316.94 crore YoY.
- Earnings Per Share (EPS) for the quarter was ₹11.13, adjusted for the bonus issue in June 2025.
- The company officially commenced trading on the NSE on November 24, 2025.
Shilchar Technologies has issued a postal ballot notice seeking shareholder approval for several key leadership and compensation changes. The company proposes appointing Mr. Aatman Alay Shah as a Whole-Time Director for a five-year term with a monthly remuneration of up to ₹14 lakhs. Additionally, the board seeks to increase the remuneration of existing Whole-Time Director Mr. Aashay Alay Shah to ₹14 lakhs per month starting April 2026. The notice also includes the appointment of Mr. Arvind Nopany as an Independent Director for five years.
- Proposed appointment of Mr. Aatman Alay Shah as Whole-Time Director for a 5-year term starting March 6, 2026.
- Proposed monthly remuneration for Mr. Aatman Alay Shah capped at ₹14 lakhs plus perquisites.
- Approval sought to increase Mr. Aashay Alay Shah's remuneration to ₹14 lakhs per month effective April 1, 2026.
- Appointment of Mr. Arvind Nopany as Independent Director for a 5-year term until March 2031.
- E-voting period for shareholders is scheduled from February 5, 2026, to March 6, 2026.
Shilchar Technologies reported a steady Q3FY26 with revenue growing 11% YoY to ₹170.26 crore and PAT increasing 22% to ₹42.34 crore. For the nine-month period (9MFY26), the company demonstrated stronger growth with PAT surging 42% to ₹129.77 crore. While domestic renewable demand remains robust, the company noted a temporary moderation in US export orders due to trade tariffs, which it aims to offset through Middle East expansion. The company remains debt-free and is progressing on a major capacity expansion to 14,000 MVA scheduled for April 2027.
- 9MFY26 Revenue grew 28% YoY to ₹500.29 crore, while PAT surged 42% to ₹129.77 crore.
- EBITDA margins improved to 30.8% in Q3FY26 from 28.3% in the same quarter last year.
- Current production capacity of 7,500 MVA is expected to be fully utilized by the end of FY26.
- Planned brownfield expansion to 14,000 MVA is on track for commissioning in April 2027.
- Maintains a debt-free balance sheet with a projected order pipeline of ₹750-800 crore for FY26.
Shilchar Technologies Limited has officially approved its unaudited financial results for the quarter and nine-month period ending December 31, 2025. The board meeting took place on January 31, 2026, and included the review of the statutory auditor's report. Although the specific profit and loss figures were not highlighted in the summary letter, the submission confirms compliance with SEBI listing regulations. Investors should now analyze the full financial statement to gauge the company's operational efficiency and growth in the transformer segment.
- Approval of unaudited financial results for the quarter ended December 31, 2025.
- Approval of financial results for the nine-month period ended December 31, 2025.
- Receipt of the Limited Review Report from the Statutory Auditors.
- Board meeting concluded within one hour on January 31, 2026.
Shilchar Technologies has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MCS Share Transfer Agent Ltd, confirms the successful processing of dematerialization requests for the quarter ended December 31, 2025. It verifies that security certificates were mutilated and cancelled after due verification and that the depositories' names were updated in the register of members within the mandatory 15-day period. This is a standard administrative filing ensuring the integrity of the company's shareholding records.
- Compliance certificate submitted for the third quarter ended December 31, 2025.
- Confirmation provided by MCS Share Transfer Agent Ltd regarding dematerialization requests.
- Security certificates were mutilated and cancelled within the required 15-day timeframe.
- Verification that dematerialized securities are listed on the relevant stock exchanges.
Shilchar Technologies Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. The closure is ahead of the declaration of the company's unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be communicated in the near future.
- Trading window closure effective from January 1, 2026
- Closure pertains to the unaudited financial results for the quarter and nine months ending December 31, 2025
- Window to reopen 48 hours after the official declaration of financial results
- Restriction applies to Directors, Promoters, Designated Employees, and Specified Connected Persons
Financial Performance
Revenue Growth by Segment
Total revenue grew 57% YoY in FY25 to INR 623.15 Cr. Export revenue grew 36% YoY to INR 271 Cr in FY25. H1FY26 revenue grew 39% YoY to INR 330.03 Cr, with Q2FY26 specifically growing 31% YoY to INR 171.28 Cr.
Geographic Revenue Split
In FY25, domestic sales contributed approximately 56.5% (INR 352.15 Cr) and exports contributed 43.5% (INR 271 Cr). US exports specifically represent 12-15% of total export revenue.
Profitability Margins
EBITDA margin improved from 28.5% in FY24 to 29.6% in FY25. PAT margin rose from 23.15% in FY24 to 23.57% in FY25. Q2FY26 EBITDA margin stood at 31.3% and PAT margin at 25%.
EBITDA Margin
EBITDA margin was 29.6% in FY25, a 110 bps expansion YoY. Core EBITDA grew 63% YoY to INR 184.75 Cr in FY25. Q2FY26 EBITDA was INR 53.60 Cr, up 31% YoY.
Capital Expenditure
The company is expanding capacity by 6,500 MVA to reach a total of 14,000 MVA by April 2027. This expansion is expected to enable a revenue potential of INR 1,400 Cr to INR 1,500 Cr.
Credit Rating & Borrowing
CARE upgraded the company's rating to CARE A; Stable / CARE A1 in July 2025. The company maintains a debt-free balance sheet with nil long-term debt and interest coverage of 578x in FY24.
Operational Drivers
Raw Materials
CRGO Steel and Copper are the primary raw materials. CRGO steel is imported due to a lack of domestic manufacturing facilities in India.
Import Sources
CRGO steel is imported into India; specific countries are not disclosed, but the company manages volatility by purchasing back-to-back upon receipt of orders.
Capacity Expansion
Current capacity is approximately 7,500 MVA, expanding to 14,000 MVA by April 2027. The company is targeting 90-95% capacity utilization for FY26.
Raw Material Costs
Raw material costs are susceptible to global price volatility and forex fluctuations. The company reported a foreign exchange gain of INR 2.64 Cr in FY24.
Manufacturing Efficiency
Capacity utilization was 77% in FY25 and increased to 90-95% in Q2FY26. The company operates as a zero-discharge pollution unit.
Strategic Growth
Expected Growth Rate
20.3%
Growth Strategy
Growth will be achieved through a major capacity expansion from 7,500 MVA to 14,000 MVA by April 2027, targeting the evolving power and transmission ecosystem in India and maintaining strong engagement in the US market despite new tariffs.
Products & Services
Distribution and Power Transformers.
Brand Portfolio
Shilchar Technologies.
Market Expansion
Focusing on the domestic renewable energy segment and maintaining a 50/50 split between domestic and export markets.
External Factors
Industry Trends
The industry is shifting toward renewable energy integration and grid modernization. Shilchar is positioning itself by expanding capacity to 14,000 MVA to capture this 15-20% industry growth.
Competitive Landscape
Operates in a competitive industry with both domestic and international players; however, niche positioning in customized transformers provides a buffer.
Competitive Moat
Moat is built on niche customized offerings, a debt-free balance sheet, and high operational efficiency (ROCE of 56.65% in FY25), which are sustainable due to high entry barriers in transformer manufacturing.
Macro Economic Sensitivity
Highly sensitive to India's power and transmission infrastructure spending and global renewable energy demand trends.
Consumer Behavior
Shift toward green energy and zero-pollution manufacturing standards is driving demand for certified sustainable suppliers.
Geopolitical Risks
US trade policy changes, specifically the 50% tariff implemented on August 27, 2024, create uncertainty for the export segment.
Regulatory & Governance
Industry Regulations
Adheres to ISO 9001:2015 (Quality) and ISO 45001:2018 (Occupational Health and Safety) standards. Operations are subject to pollution control norms.
Environmental Compliance
Maintains ISO 14001:2015 and operates as a zero-discharge pollution unit; ESG compliance costs are not specifically disclosed.
Taxation Policy Impact
Effective tax rate is approximately 25.3% based on H1FY26 PBT of INR 117.13 Cr and PAT of INR 87.43 Cr.
Legal Contingencies
The company reported no material related party transactions and no transactions that were not at arm's length for FY25.
Risk Analysis
Key Uncertainties
US tariff policy (50% rate) and volatility in imported CRGO steel prices are the primary uncertainties that could impact margins by 5-10%.
Geographic Concentration Risk
43.5% of revenue is from exports, with a significant portion of that directed toward the US market.
Third Party Dependencies
High dependency on international suppliers for CRGO steel due to lack of domestic availability.
Technology Obsolescence Risk
Low risk; the company maintains state-of-the-art infrastructure and ISO certifications to stay current with manufacturing standards.
Credit & Counterparty Risk
Trade receivables turnover ratio of 3.87 in FY25 suggests reasonable collection cycles, though it slowed slightly from 4.27 in FY24.