💰 Financial Performance

Revenue Growth by Segment

Total Income grew 15% YoY to INR 362 Crore in FY25 from INR 313 Crore in FY24. In H1 FY26, revenue from operations reached INR 229 Crore, a 41% YoY increase, driven by full utilization of existing capacity and robust demand from transformer OEMs.

Geographic Revenue Split

Not disclosed in available documents, though the company serves both domestic and international markets and is actively looking to expand its international footprint.

Profitability Margins

PAT margin stood at 10.7% in H1 FY26. For FY25, PAT was INR 34 Crore, representing a 48% YoY increase from INR 23 Crore in FY24, driven by operating leverage and a better product mix.

EBITDA Margin

EBITDA margin improved to 14.8% in FY25 compared to 10.7% in FY24. In H1 FY26, EBITDA (excluding other income) was INR 31 Crore, up 74% YoY with a margin of 13.6%.

Capital Expenditure

The company raised approximately INR 95.25 Crore through an IPO in May 2024 to fund the setting up of a new factory (Unit 3) and working capital requirements. Total IPO proceeds utilized as of Nov 2025 were INR 79.85 Crore.

Credit Rating & Borrowing

ICRA upgraded the long-term rating to [ICRA]A- (Stable) from [ICRA]BBB+ (Positive) in June 2024 and reaffirmed it in July 2025. Short-term rating is [ICRA]A2+. The company is net-debt-free with no external debt as of mid-2025.

⚙️ Operational Drivers

Raw Materials

CRGO (Cold Rolled Grain Oriented) coils are the primary raw material, representing the bulk of input costs.

Import Sources

Sourced from both domestic and international suppliers to maintain sourcing flexibility and mitigate supply chain disruptions.

Key Suppliers

Not disclosed in available documents; however, the company maintains a diversified supplier base to ensure supply chain continuity.

Capacity Expansion

Current manufacturing capacity is 12,000 MTPA. The company is tripling this to 36,000 MTPA through the commissioning of Unit 3, scheduled for Q2 FY2026.

Raw Material Costs

Raw material costs are influenced by global market trends and geopolitical factors. The company manages this through a disciplined procurement strategy and maintaining buffer inventory.

Manufacturing Efficiency

Total production volume in FY25 was 12,069 metric tons, reflecting 10% YoY growth and full utilization of existing capacity.

📈 Strategic Growth

Expected Growth Rate

41%

Growth Strategy

Growth will be achieved by tripling manufacturing capacity to 36,000 MTPA by Q2 FY2026, expanding into high-value adjacent product segments, and increasing penetration in both domestic and international markets.

Products & Services

Transformer cores, laminations, and other critical components used in power transformers.

Brand Portfolio

Vilas Transcore.

New Products/Services

Expansion into high-value product segments and adjacent transformer components is expected to drive future revenue growth.

Market Expansion

Targeting expansion in international markets and widening the domestic market reach through enhanced production capabilities.

🌍 External Factors

Industry Trends

The industry is seeing robust demand from transformer OEMs. Vilas is positioning itself by scaling up precision manufacturing and adopting new technologies to meet higher precision requirements.

Competitive Landscape

Faces competition from domestic players scaling up and imported alternatives, leading to pricing challenges in large-scale contracts.

Competitive Moat

Moat is built on quality, reliability, and long-standing relationships with transformer OEMs. Sustainability is supported by the massive capacity expansion which provides economies of scale.

Macro Economic Sensitivity

Highly sensitive to the power infrastructure sector and demand for power transformers, which are linked to national grid expansions and industrial growth.

Consumer Behavior

Not applicable as the company is a B2B supplier to industrial OEMs.

Geopolitical Risks

Geopolitical risks impact the supply and pricing of imported CRGO coils, which are essential for production.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to regulatory developments and policy shifts in the power and manufacturing sectors.

⚠️ Risk Analysis

Key Uncertainties

Execution risk associated with the Unit 3 capacity expansion and potential volatility in raw material prices (CRGO) which could impact margins by 2-3%.

Third Party Dependencies

High dependency on suppliers of CRGO coils; any supply disruption could halt production.

Technology Obsolescence Risk

Risk is managed through continuous focus on innovation in product and process and scaling into higher precision manufacturing.

Credit & Counterparty Risk

Trade receivables increased by INR 23.07 Crore in H1 FY26, suggesting a need for careful monitoring of counterparty credit quality.