Company Overview
Shivam Autotech Limited, a leading manufacturer of transmission gears and precision engineering components for automotive and non-automotive applications, reported challenging financial results for FY 2025-26. The company operates four manufacturing facilities in Gurugram, Haridwar, Bengaluru, and Rohtak, employing over 3,000 people.
Financial Performance FY26
The company reported a net loss of ₹81.33 crore (₹8,205.27 lakh) for FY26, compared to ₹48.04 crore loss in FY25. Revenue from operations stood at ₹409.58 crore, down from ₹453.98 crore in the previous year, significantly impacted by working capital constraints that affected production capacity throughout most of the fiscal year.
The financial position deteriorated with negative net worth of ₹40.68 crore (₹4,068.21 lakh) as of March 31, 2026. Total borrowings amounted to ₹398.79 crore (₹39,878.74 lakh) with a debt-equity ratio of (9.80). The current ratio improved to 0.76 from 0.46 in FY25, though current liabilities exceeded current assets by ₹50.60 crore.
Capital Structure and Financing
Significant financing activities included issuing ₹245 crore and ₹105 crore Non-Convertible Debentures (NCDs) to Alpha Alternative Structured Credit Opportunities Fund at 10% interest, along with ₹120 crore Optionally Convertible Debentures (OCDs). These instruments were secured by complex security arrangements including pledges on promoter equity shares, mortgages on plant assets, and corporate/personal guarantees.
The Board approved increasing authorized share capital from ₹44 crore to ₹55 crore to facilitate a Rights Issue aimed at strengthening the balance sheet by augmenting working capital, reducing leverage, and restoring financial flexibility. As part of this initiative, the unsecured loan extended by the promoter will be converted into equity.
Operational Recovery and Exceptional Items
Q4 FY26 showed signs of recovery with revenue increasing 13.7% quarter-on-quarter to ₹109.43 crore and EBITDA doubling to ₹11.16 crore from ₹5.05 crore in Q3, following meaningful liquidity infusion received in December 2025.
The company recognized exceptional items of ₹2.88 crore (₹288.42 lakh) comprising statutory impacts of new Labour Codes (₹111.58 lakh) and a retrospective wage settlement agreement effective from June 1, 2024, to April 30, 2026 (₹176.84 lakh).
Corporate Governance and Related Party Transactions
Key management personnel include Neeraj Munjal as Managing Director and Yogesh Chander Munjal as Chairman. Significant related party transactions involved Dayanand Munjal Investments Private Limited (holding company) and Munjal Showa Limited, with total transactions exceeding ₹30 crore across sales, purchases, and financing activities.
Forward Outlook and AGM Details
The 21st Annual General Meeting is scheduled for September 25, 2026, through video conferencing. Management priorities for FY2026-27 include restoring profitable growth, improving operational performance, strengthening cash generation, reducing leverage, and expanding presence in high-growth product categories including industrial components, renewable energy equipment, and construction tools.
The company remains optimistic about opportunities from increasing localization, export expansion, and evolving electric mobility trends, supported by the planned Rights Issue and ongoing business diversification efforts.