Financial Performance Summary

Q1FY27 Consolidated Results:

  • Revenue: ₹182.2 crore, up 33.4% YoY and 13% QoQ
  • EBITDA: ₹43.2 crore, up 35.2% YoY and 23% QoQ
  • PAT: ₹33 crore, up 44.9% YoY and 26% QoQ

Business Segment Performance:

  • Shunts revenue: Increased 18.7% YoY
  • Bimetals revenue: Increased 7.4% YoY
  • Electrical contacts business (subsidiary): Contributed to consolidated growth

Geographic Performance

  • India: Delivered broad-based growth across both businesses
  • Europe: Grew strongly, led by shunts
  • Americas: Showed early improvement in shunts with 30% YoY growth
  • Asia: Weaker during the quarter, focus on rebuilding momentum

Operational Highlights

Capacity Utilization:

  • Shunts welding capacity: 65-70% utilized
  • Thermostatic bimetal capacity: 40-45% utilized

Value-Add Transition:

  • Strip production/sales in shunts reduced to nearly one-third of previous levels
  • 70-75% of value addition growth came from converting to value-added parts rather than materials
  • Remaining growth attributed to commodity price increases (copper, silver)

New Initiatives & Expansion

Pune Facility (Cell Connecting Systems):

  • Received consent to operate for Phase 1
  • Approved capacity provides scalable manufacturing platform for cell connecting systems
  • Targeting ₹300-400 crore revenue in about 3 years
  • Expected revenue contribution: 10-15% in Year 1, ₹150-200 crore in Year 2, ₹300+ crore thereafter
  • Total project CAPEX: ₹20-25 crore

Current Customers:

  • Currently supplying to one major two-wheeler OEM through their supplier
  • Working with 2-3 additional designs
  • Focus on safety improvements for EV two-wheelers

Future Growth Opportunities

New Product Development:

  • Exploring specialized material for electronic applications (metallurgical specialization)
  • Automotive fuses development with potential technology partnerships or acquisitions
  • Four-wheeler cell connecting system assemblies in development

End-Market Focus:

  • Two-wheeler EVs: Significant developments and fast-paced opportunities
  • Smart meters: Consistent growth expected
  • Energy storage: Potential application for current sensing measurement

FY27 Guidance

Revenue Growth: 20-30% expected if developments proceed as forecast

Business Mix Expectations:

  • Standalone: 44-45% from Bimetal, 54-55% from Shunts
  • Consolidated: 30-35% from contacts business (subsidiary)
  • New assemblies (PCB assemblies, bus bar assemblies): 15-16% of total revenue

Customer Concentration

  • Largest customer exposure expected to remain below 20% (previously reached 35-40%)
  • Healthy diversification maintained

Management Commentary

  • Q1 provides strong operating start to FY27
  • Margin improvement achieved while investing in capacity, people, and capabilities
  • Focus on margin quality, working capital efficiency, cash conversion, and selective capital allocation
  • Strategy to grow core business, recover export market opportunities, and execute forward integration