SPCL - Shivalic

📊 NSE: SPCL 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 13:14

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable business segment: LT & HT Electrical Panels. Revenue from operations for H1FY25 grew 72.5% YoY to INR 53.51 Cr compared to INR 31.02 Cr in H1FY24. For the full year FY25, revenue reached INR 132.36 Cr, representing a 29.5% increase from INR 102.18 Cr in FY24.

Geographic Revenue Split

While specific percentage splits are not disclosed, the company reported successful acquisition of new customers in Southern and Western India during FY25. It is also exploring export opportunities to neighboring countries and the Middle East.

Profitability Margins

Net Profit Margin for FY25 stood at 9.38%, a decrease from 10.97% in FY24. However, H1FY25 PAT margin improved to 12.1% from 10.9% in H1FY24. Return on Equity (ROE) decreased from 33.93% in FY24 to 16.12% in FY25 due to the fresh issue of share capital during the IPO.

EBITDA Margin

EBITDA for H1FY25 was INR 9.4 Cr with a margin of 17.5%, down from 21.0% in H1FY24. For FY24, the EBITDA margin was 19.0% (INR 19.46 Cr). The margin compression in H1FY25 is attributed to fluctuations in raw material costs and increased employee benefit expenses which rose 129.3% YoY to INR 3.6 Cr.

Capital Expenditure

The company planned a capital expenditure of INR 7.64 Cr from IPO proceeds, of which INR 2.30 Cr (approx 30%) was utilized by September 30, 2025. Historical property, plant, and equipment stood at INR 18.82 Cr as of H1FY25.

Credit Rating & Borrowing

The Debt-Equity ratio significantly improved, decreasing 93.5% to 0.05 in FY25 from 0.78 in FY24 due to the repayment of loans. Finance costs for H1FY25 were INR 0.36 Cr, a decrease from INR 1.59 Cr in the previous full year FY24.

⚙️ Operational Drivers

Raw Materials

Steel, Copper, and Aluminium are the primary raw materials, with the cost of materials consumed representing 83.1% of total revenue in H1FY25 (INR 45.05 Cr).

Capacity Expansion

The company is investing in capacity expansion using IPO funds, with INR 5.34 Cr of the allocated INR 7.64 Cr for capital expenditure remaining unutilized as of September 30, 2025. Current capacity in units is not specified.

Raw Material Costs

Raw material costs (Cost of Goods Sold) were INR 75.82 Cr in FY24 (74.2% of revenue) and rose to INR 110.74 Cr in FY25. Procurement strategies include multi-vendor sourcing to mitigate supply chain risks.

Manufacturing Efficiency

Return on Capital Employed (ROCE) reduced from 24.87% in FY24 to 15.71% in FY25, which management attributes to recent capital investments where returns are expected in upcoming years.

📈 Strategic Growth

Expected Growth Rate

72.50%

Growth Strategy

Growth will be driven by strengthening the order book from commercial and industrial clients, forming strategic partnerships with automation OEMs and EPC players, and focusing on high-margin value-added panels. The company is also exploring exports to the Middle East and neighboring countries and has allocated INR 5.75 Cr for inorganic growth through unidentified acquisitions.

Products & Services

LT & HT Electrical Panels, Smart Panels, and Automation Solutions.

Brand Portfolio

Shivalic Power Control.

New Products/Services

Focus on high-margin, value-added panels and automation solutions; expected revenue contribution not specifically quantified.

Market Expansion

Targeting expansion in Southern and Western India and international markets in the Middle East.

Strategic Alliances

Strategic partnerships with automation OEMs and EPC players are mentioned as key growth drivers.

🌍 External Factors

Industry Trends

The industry is benefiting from a government push for infrastructure and EV infrastructure. There is a growing demand for automation and smart panels, with the industry shifting toward digitized power distribution.

Competitive Landscape

Competition includes both large organized players and unorganized local manufacturers who exert pricing pressure.

Competitive Moat

Moat is built on strategic partnerships with automation OEMs, specialized technical expertise in government tender participation, and a strong track record in the LT & HT panel segment. Sustainability is supported by high switching costs for integrated industrial automation systems.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending, electrification projects, and global commodity price cycles for copper and steel.

Consumer Behavior

Industrial and commercial clients are increasingly demanding smart, energy-efficient, and automated power control solutions.

Geopolitical Risks

Potential trade barrier impacts as the company explores exports to the Middle East.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to evolving electrical safety norms and regulatory standards including ISO, CE, and IEC certifications.

Taxation Policy Impact

The effective tax rate for H1FY25 was approximately 25.2% (INR 1.74 Cr tax on INR 6.90 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Working capital risk is a primary concern, with trade receivables increasing to INR 41.99 Cr in H1FY25 from INR 28.53 Cr in March 2025, representing a potential strain on liquidity.