SHILCTECH - Shilchar Tech.

📊 NSE: SHILCTECH 🏢 Other Electrical Equipment 📅 Last Updated: 11/13/2025 15:25

💰 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.