Quarterly Financial Performance (Q2FY27)

Revenue Metrics

  • Revenue from Operations: ₹192.61 crores (43% QoQ growth, 12% YoY growth)
  • Total Income: ₹199.41 crores (41% QoQ growth, 11% YoY growth)
  • Q1FY27 Revenue from Operations: ₹134.61 crores
  • Q2FY26 Revenue from Operations: ₹171.28 crores

Profitability Metrics

  • EBITDA (excluding OI & EI): ₹40.06 crores (82% QoQ growth, -25% YoY decline)
  • EBITDA Margin: 20.8% (442 BPS improvement QoQ, 1,049 BPS decline YoY)
  • Q1FY27 EBITDA: ₹22.06 crores with 16.4% margin
  • Q2FY26 EBITDA: ₹53.60 crores with 31.3% margin
  • PAT: ₹32.98 crores (58% QoQ growth, -28% YoY decline)
  • EPS: ₹28.83 (58% QoQ growth, -28% YoY decline)
  • Q1FY27 PAT: ₹20.86 crores, EPS: ₹18.24
  • Q2FY26 PAT: ₹45.94 crores, EPS: ₹40.15

Other Financials

  • Finance Cost: ₹0.10 crore (-3% QoQ, 3% YoY)
  • Depreciation & Amortization: ₹1.08 crore (2% QoQ, 7% YoY)
  • PBT: ₹45.69 crores (63% QoQ growth, -26% YoY decline)

Management Commentary

Business Performance

Business picked up notably in Q2FY27 after a slow Q1, when export business to the Middle East was affected by the continuing effects of the crisis in West Asia. Conditions in the Middle East improved during the quarter but are yet to fully normalize. Shipping and logistics cost pressures have eased only partially.

Export Performance

Exports to North America gained momentum following the resolution of earlier tariff-related challenges, offsetting part of the shortfall in Middle East dispatches. Margins recovered sequentially in Q2 over Q1. The company expects conditions in the Middle East to improve further in near future, which should translate into higher export share in revenue mix and further margin improvement.

Outlook

The company remains on track with its revenue target for the year, with healthy orders in hand and deliveries scheduled for H2FY27.

Capacity Expansion Update

Gavasad Expansion #3

  • Project progressing as per plan
  • Commissioning expected in April 2027
  • Additional capacity: 6,500 MVA
  • Total capacity post-expansion: 14,000 MVA (from current 7,500 MVA)

Current Capacity

  • Existing production capacity: 7,500 MVA
  • Focused on transformers up to 50 MVA & 132 KV class, expanding into 220 KV class

Facility Details

Flagship Gavasad Facility

  • Location: Gavasad, Vadodara
  • Land area: 21 acres with sufficient land available for future expansion
  • Built-up area: 1.6 lakh sq.ft. existing, additional 1.1 lakh sq.ft. coming online in 2027
  • Employees: 475+ people
  • Certifications: NABL accredited testing lab

Manufacturing Infrastructure

  • 2 production shops (one for 5 MVA, 33 KV class and one for 50 MVA, 132 KV class)
  • Dust-free environment with HVAC system and epoxy flooring
  • Automatic foil winding technology with PLC-based machines
  • Automatic argon gas based brazing facility
  • SAP ERP integrated warehouse

Company Overview

Business Profile

  • Premier brand of Power & Distribution Transformers for ~4 decades
  • Specializes in custom-made transformers for Renewables & Industrial applications
  • Exported transformers to over 25+ countries across 5 continents
  • Debt-free balance sheet with substantial cash reserves

Key Milestones Timeline

  • 1986: Company incorporated
  • 1990: Ventured into R-Core transformers
  • 1995: Listed on BSE & ventured into Ferrite transformers
  • 2000: Expanded into Distribution & Power transformers
  • 2008: Commenced transformer exports
  • 2010: Entered renewables transformer market
  • 2014: Clocked ₹100 crore revenue, fully utilizing 1,000 MVA capacity
  • 2015: Acquired Gavasad land
  • 2018: Commissioned Gavasad facility, expanding capacity to 4,000 MVA
  • 2024: Expanded production capacity to 7,500 MVA in August
  • 2026: Clocked ₹650+ crore revenue, initiated capex to expand to 14,000 MVA

Experience

  • 26 years in Power & Distribution Transformers
  • 19 years in Transformer Exports
  • 17 years in Renewables Transformers

Management Team

Key Personnel

  • Alay J. Shah: Chairman & Managing Director (37 years experience, handles Design, Production, Finance, and Marketing)
  • Aashay A. Shah: Executive Director (10 years experience, handles Marketing, Production, Procurement and Design)
  • Aatman A. Shah: Executive Director (7 years experience, handles Marketing, Production, Procurement and Design)
  • Vishnupriya Civichan: Company Secretary & Compliance Officer
  • Prajesh Purohit: Chief Financial Officer

Financial Performance History (5-Year)

Revenue Growth

  • FY22: ₹180.18 crores
  • FY23: ₹280.24 crores
  • FY24: ₹396.88 crores
  • FY25: ₹623.15 crores
  • FY26: ₹651.94 crores
  • CAGR (FY21-25): 38%

Profitability Trend

  • EBITDA FY22: ₹19.42 crores (10.8% margin)
  • EBITDA FY23: ₹53.08 crores (18.9% margin)
  • EBITDA FY24: ₹113.30 crores (28.5% margin)
  • EBITDA FY25: ₹184.75 crores (29.6% margin)
  • EBITDA FY26: ₹190.42 crores (29.2% margin)
  • EBITDA CAGR (FY21-25): 77%

PAT Growth

  • PAT FY22: ₹14.01 crores
  • PAT FY23: ₹43.12 crores
  • PAT FY24: ₹91.89 crores
  • PAT FY25: ₹146.85 crores
  • PAT FY26: ₹158.16 crores
  • PAT CAGR (FY21-25): 83%

Balance Sheet Position (FY26)

  • Shareholders' Funds: ₹490.85 crores
  • Total Assets: ₹590.51 crores
  • Non-current Assets: ₹87.89 crores
  • Tangible Assets: ₹68.18 crores
  • CWIP: ₹6.41 crores
  • Current Assets: ₹502.62 crores
  • Inventories: ₹92.18 crores
  • Trade Receivables: ₹153.60 crores
  • Cash & Bank Balances: ₹245.95 crores
  • Debt-free status: No long-term or short-term borrowings

Cash Flow Summary (FY26)

  • Cash from Operating Activities: ₹192.02 crores
  • Cash from Investing Activities: -₹169.39 crores
  • Cash from Financing Activities: -₹30.96 crores
  • Net Cash Flow: -₹8.33 crores

Capital Markets Overview

Market Data (as of 28th October 2026)

  • Current Market Price: ₹3,797.60
  • 52 Week High/Low: ₹5,399.00 / ₹2,852.50
  • Market Capitalization: ₹4,345 crores
  • Shares Outstanding: 1.14 crores

Shareholding Pattern (as of 30th September 2026)

  • Shareholding pattern data included in presentation but specific percentages not detailed in text

Business Model & Strategy

Competitive Positioning

  • Niche product profiles for various industries
  • Made-to-order approach over stock-and-sell
  • Strong in-house design and engineering capabilities
  • Assembly-focused manufacturing with outsourcing of lower value-add components
  • Quick turnaround time and order fulfillment

Competitive Strengths

1. Mass customization ability to deliver custom-solutions at scale

2. Robust capital structure with debt-free balance sheet and surplus cash reserves

3. Diversification across customers, applications, and geographical markets

4. High entry barriers for niche products with trust earned over decades

Demand Drivers

  • Continued thrust towards conventional energy in emerging economies like India
  • Investments in ageing grid infrastructure worldwide, especially in US & EU
  • Private sector CAPEX in traditional and new-age sectors (data centers, captive green energy)
  • Energy transition to renewables with utility-scale build-out

Investor Relations Contact

  • Company Contact: Prajesh Purohit, Chief Financial Officer (ppurohit@shilchar.com)
  • IR Advisor: TIL Advisors Private Limited, Sayam Pokharna (sayam@theinvestmentlab.in)