Shilchar Technologies Ltd

Financial Performance

• Q1 FY27 revenue: ₹134.60 cr; EBITDA: ₹29.23 cr; PAT: ₹20.86 cr.
• FY27 started softer due to West Asia crisis impacting exports and rising raw-material costs.
• April–May saw sharper headwinds; margins affected by lower export mix and partial passthrough.
• Management on track to achieve full-year revenue target; no anticipated deviation from ₹800 cr guidance.

Operations & Geography

• West Asia crisis raised shipping costs (3–5x in some geographies); not a demand issue.
• Underlying domestic demand firm; negotiations extended, delaying some dispatches in Q1.
• Export mix weaker; domestic focus being strengthened to offset export headwinds.

Capex and Capacity

• Phase-3 expansion adds 6,500 MVA; commissioning targeted for April 2027.
• Civil foundation completed; PEB erection progressing; equipment ordered.
• Existing 7,500 MVA capacity to operate at almost full utilization in FY27.
• Adjacent land addition of about 4.5 acres; future expansion planned.

Outlook & Guidance

• FY27 outlook unchanged; revenue target ₹800 cr maintained.
• Q2 momentum expected to be better than Q1; exports may face higher costs if West Asia persists.
• New facility expected to drive growth from FY28 onwards.

Q&A Highlights

• Order book ~₹500 cr as of today; 70% domestic, 30% exports.
• Q1 capacity utilization ~60–65%; target near 100% utilization for FY27.
• 50–60% of prior price-rise passed through on Q4/Q1 orders; current orders at market prices.
• Prototype timeline: larger transformers prototyping ~3–4 months after production starts.

Meeting Details

• Date: 14 August 2026; Meeting type: Conference Call with analysts and investors.
• Purpose: Discuss unaudited results for quarter ended 30 June 2026.

Availability

• Audio recording of the conference call is available on the company website.

AGM Details

• AGM held on 11 August 2026; voting results and scrutinizer report submitted.

Meeting Details

• Date and time: Friday, 14 August 2026 at 2:30 PM IST.
• Type and mode: group virtual conference call for earnings discussion.
• Event: Q1FY27 Earnings Conference Call.
• Organizer: Shilchar Technologies Limited.

Participants

• Key company participants: Chairman & Managing Director; Executive Directors; Chief Financial Officer.

Purpose

• Purpose: discuss Q1FY27 performance.

Business Overview

• Transformer manufacturer focused on power, distribution and renewables segments with capacity expansion planned.
• Debt-free balance sheet with substantial cash reserves and global export footprint across 25+ countries.
• Flagship Gavasad facility, capacity expansion from 7,500 MVA to 14,000 MVA by FY28.

Operational Highlights

• Q1FY27 revenue from operations ₹134.61 crore; total income ₹141.78 crore.
• Gavasad Expansion #3 commissioning targeted April 2027; on-track for revenue ambition.
• Capex plan to add 6,500 MVA capacity by Apr 2027; total capacity 14,000 MVA.
• Geographic mix may shift due to West Asia situation; exports affected by shipping costs.
• Management expects better momentum in Q2FY27; domestic pass-through of commodity inflation slower.

Financial Performance

• FY26 revenue from operations ₹651.94 crore; EBITDA ₹190.42 crore; EBITDA margin 29.2%.
• Q1FY27 EBITDA ₹22.06 crore; EBITDA margin 16.4%.
• FY26 PAT ₹158.16 crore; EPS ₹138.25.
• Operating cash flow ₹192.02 crore; cash & bank balances ₹245.95 crore.
• Debt-free balance sheet with no long-term borrowings; total equity ₹490.85 crore; total assets ₹590.51 crore.

Capital Structure & Liquidity

• Debt-free balance sheet with no long-term borrowings as of FY26.
• Cash & bank balances ₹245.95 crore; FY26 operating cash flow ₹192.02 crore.
• Capex funded through internal accruals on a debt-free base.

Strategic Priorities & Outlook

• Capex to expand capacity to 14,000 MVA by April 2027.
• Order pipeline for FY27 around ₹800 crore; robust inquiries domestically and export.
• Global grid, TD infra investments drive demand; renewables expansion supports growth.
• Gavasad facility expansion commissioning April 2027; on-track to meet growth targets.

Risks & Mitigation

• West Asia crisis continues to affect exports and domestic margins via higher commodity prices.
• Rising shipping costs increase landed costs; management expects partial pass-through and momentum later.

Governance & Leadership

• Alay J. Shah is Chairman & Managing Director; two Executive Directors are Aashay and Aatman Shah.

Meeting Details

• Date and time: 14 August 2026 at 2:30 PM IST.
• Type and mode: virtual earnings conference call (group).
• Organizer: Shilchar Technologies Limited, Q1FY27 earnings call.
• Purpose: discuss Q1FY27 unaudited standalone results for quarter ended 30 June 2026.
• Management participants: Chairman & Managing Director; Executive Directors; Chief Financial Officer.

AGM details

• 40th AGM held on 11 August 2026 at 3:00 PM via VC/OAVM.
• VC facility provided by CDSL; 48 members attended via VC.
• Remote e-voting: 8 Aug 2026 09:00 to 10 Aug 2026 17:00; post-meeting voting open 15 minutes.

Resolutions placed

• Adopt Audited Financial Statements for year ended 31 March 2026.
• Declare dividend on equity shares for year ended 31 March 2026.
• Re-appoint Alay Jitendra Shah by rotation.
• Remuneration to Cost Auditors for the financial year 2025-26.
• Re-appoint Aashay Alay Shah as Whole Time Director for five years.
• Approve managerial remuneration to Alay Jitendra Shah as Managing Director.

Voting status

• Results of e-voting to be declared within 48 hours per Scrutinizer's report.

Directors / appointments

• Alay Jitendra Shah to be re-appointed by rotation.
• Aashay Alay Shah re-appointed as Whole Time Director for five years.

Auditors and remuneration

• Statutory Auditor: CNK & Associates LLP.
• Secretarial Auditor: Kashyap Shah.
• Cost Auditor remuneration approved for FY 2025-26.

Board outcome

• Board approved unaudited results for quarter ended 30 June 2026; Limited Review Report enclosed as Annexure A.