Key Financial Performance (FY2026)

  • Consolidated Revenue: ₹570.9 crore, up 12.3% YoY
  • Consolidated EBITDA: ₹130.7 crore, up 26.0% YoY
  • Consolidated PAT: ₹95.8 crore, up 24.8% YoY
  • EBITDA Margin: 22.9%, expanded by approximately 250 basis points

Strategic Business Updates

Product Mix Shift: The company is deliberately shifting from strip-based supply to higher-value components and assemblies. The contribution of shunt components increased from 55% to 65% year-on-year, yielding a 10-12% improvement in realization per kg.

Smart Meter Business: Revenue from smart meter applications nearly doubled in FY26, reaching ₹75-80 crore (from a base of ₹30-40 crore). Growth is expected to continue for the next 6-8 quarters, with contacts business contribution expected to increase further in FY27.

US Market Recovery: Business with a key US shunt customer is recovering. Management expects revenue to return to past peak levels in FY27-28, driven by new product developments and a shift from strip to finished resistor components. This business is expected to contribute a maximum of 16-18% of total revenue at peak (down from historical highs of 38-39%), reducing concentration risk.

New Busbar/PCBA Business: The new Pune facility focuses on PCBA and busbar assemblies for automotive (primarily two-wheeler EV) and electrification applications. Management expects this standalone unit to generate revenues of ₹250-350 crore in a 2-3 year period. The strategy includes targeting applications beyond automotive (energy storage, non-automotive current sensing) to avoid industry concentration.

Electric Contacts Division: The division saw significant revenue growth (~60%), approximately half of which was due to high silver commodity prices and half due to actual business growth (~31%). A new plant added capacity, addressing previously deferred customer orders. Margins improved due to a shift to higher-value components with lower silver consumption.

Thermostatic Bimetals: The India market remained flat due to stagnant consumption in the switchgear (MCB) industry, linked to a real estate boom focused on high-end/low-volume projects. The strategy is to target high-volume export business to utilize spare capacity, even at slightly lower margins.

Operational and Financial Metrics

Capacity Utilization: The company has a theoretical revenue capacity of ₹1300 crore across its three product verticals. Current utilization is around 60% on average, varying by vertical. FY27 utilization is expected to reach around 75-80%.

Working Capital: Trade receivable days increased due to higher exports (90+ days for export vs. 70-75 days for India). Inventory days also increased due to procuring materials for the new PCB assembly business and safeguarding supply chains amid geopolitical scenarios.

Capital Expenditure: No substantial growth capex is required for existing businesses. Maintenance and automation capex is estimated at ₹10-15 crore annually.

Growth Outlook and Targets

Management's internal target is to achieve growth in the "upwards of 20% and closer to 30%" range. The foundation is considered strong for a return to historical 30%+ PAT growth levels over a 5-year period, driven by a more diversified and value-added product portfolio.

Corporate Structure

Metallor JV is now a 100% subsidiary of Shivalik, following the partner's exit in 2023.