Shri Balaji Valve Components Ltd

Meeting Details

• Meeting scheduled for 27 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve draft Annual Report for FY2025-26, including Board, Secretarial, and Statutory Auditor reports.
• Appoint Scrutinizer M/s CZ & Associates LLP for e-voting and scrutinizer's report for the AGM.
• Fix date, time and venue of the 15th AGM and approve the Draft AGM Notice.
• Appoint director in place of Mrs. Madhuri Laxmikant Kole, retires by rotation and eligible for re-appointment.
• Consider and approve the resignation of the Company Secretary.

Other Notes

• No additional material notes disclosed.

Dematerialisation/rematerialisation status

• No rematerialisation requests were received in the reporting quarter.

FY26 results

• H2 FY26 revenue from operations rose 26% year-on-year to Rs 55.246 crore.
• H2 FY26 EBITDA increased 16.71% year-on-year to Rs 9.21 crore.
• H2 FY26 EBITDA margin was 16.61%; PAT was Rs 5.19 crore, up 20.73%.
• FY26 revenue from operations was Rs 96.81 crore; total income was Rs 98.34 crore.
• FY26 gross profit margin was 18.60%; EBITDA margin was 23.75%; PAT grew 31.59%.

Operations and outlook

• Third plant has been commissioned; plant reorganization should finish in 3-4 weeks.
• Around 10 new machines were added, including CNCs, HMCs, VMCs, and multitasking machines.
• Management expects FY27 topline growth around 20-25% or more.
• EBITDA margins around 17% were said to be sustainable long term.
• Current capacity can support about Rs 140-150 crore annual revenue.

Q&A Highlights

• Analysts asked about raw material inflation; management said costs are passed to customers, but order conversion slows.
• Analysts asked about export exposure; management said exports are 26% of revenue and may rise.
• Analysts asked about capacity constraints; management said working capital is not a constraint, external volatility is.
• Analysts asked about utilization; management said machining runs in three shifts and brownfield expansion is possible.
• Analysts asked about order book; management said current order book is 20-22% of last year's revenue.
• Analysts asked about customer concentration; management said top 5-7 customers contribute about 65% of revenue.
• Analysts asked about geography; management said exports go to 14 countries, including the US, Europe, and Asia.
• Analysts asked about margins on exports; management said margins vary by order and component, not by domestic versus export.
• Analysts asked about capex; management said FY27 capex is about Rs 2-3 crore for machines and inspection equipment.
• Analysts asked about funding and dividends; management said no equity raise is planned and dividends are still under consideration.

Business mix

• Company makes forged, heat-treated, and machined valve components.
• Main products include ball valves, butterfly valves, control valves, and other valve types.
• Key end markets include oil and gas, pharma, petrochemicals, defense, shipbuilding, power, and instrumentation.
• USP cited was integrated forging, heat treatment, machining, and PED/NORSOK certifications.

Business

• Manufactures customized, ready-to-assemble valve components for industrial valve applications.
• Serves oil and gas, petrochemical, food, power, pharmaceuticals, and defense sectors.
• Operates three plants in Pune with 130+ machines and 300+ employees.

Operations

• Commissioned a third plant in Chakan, Pune during FY26.
• Added 5-axis multitasking machines, HMCs, VMCs, CNCs, and inspection equipment.
• Exports reached 30% of FY26 revenue, with sales across 14 countries.

Financials

• FY26 revenue rose 19.5% to ₹96.81 crore.
• FY26 EBITDA increased 23.75% to ₹15.73 crore; margin improved to 16.25%.
• FY26 PAT grew 31.59% to ₹8.56 crore; PAT margin improved to 8.84%.
• H2FY26 revenue grew 25.92% YoY; EBITDA and PAT rose 16.71% and 20.73% YoY.

Balance Sheet

• Total equity increased to ₹52.90 crore in FY26 from ₹44.34 crore.
• Long-term borrowings fell to ₹13.48 crore, while short-term borrowings rose to ₹9.47 crore.
• Cash and equivalents declined to ₹4.12 crore; capital work-in-progress rose to ₹6.36 crore.

Outlook

• Management is expanding capacity to improve precision, throughput, and quality control.
• Growth is tied to industrial valve demand from water, power, oil and gas, and process industries.
• Focus areas include smart valves, sustainability, and customized specialty solutions.

Governance

• Whole Time Director and CFO Shrinivas Laxmikant Kole signed the filing on 4 June 2026.

Financial Performance 📊

• H1 FY26 revenue rose 12% to ₹41.35 crore from ₹36.96 crore in H1 FY25.
• H1 FY26 EBITDA increased to ₹7.14 crore from ₹5.33 crore; PAT rose to ₹3.36 crore from ₹2.20 crore.
• EPS improved in H1 FY26; EBITDA margin sustained at 15%-17%.
• Current order book stands at ₹16 crore, expected execution within 6-8 weeks.
• Capacity utilization: machining ~79% (up from 56% in FY24), forging ~50% (up from 25%).
• Optimum revenue potential post-expansion estimated at ₹130-140 crore.

Business & Market Drivers 🌍

• Supplies valve components to 14 countries across 6 continents; major markets: US, Germany, Italy, Saudi Arabia.
• Domestic revenue share rose to 75%-78% in FY26 from ~30%-33% earlier.
• Key end industries: oil & gas, petrochemical, power generation, food & beverage; pilot orders in defense and pharma.
• Valve market growth driven by power, infrastructure, automation, chemical/process industries, oil & gas expansion.
• Developing new product lines: flanges, triple offset valve bodies, discs.
• Engineering team developed 66 product lines in 7-8 months for German customer; orders start Feb 2026.

Operational & Strategic Updates ⚙️

• Forging capacity increased from 10.8 lakh kg to 18-21 lakh kg; own forging, heat treatment, machining facilities integrated.
• Third plant commissioned with new machines; fourth plant utilization under consultation.
• Collaborations with 4-6 foundries for casting; no plans for in-house casting or valve manufacturing.
• Lead time typically 6-8 weeks; some products delivered in 4 weeks.
• Top 10 customers contribute ~65% revenue; top 5 contribute ~35%.
• Raw materials: stainless steel, mild steel, nickel alloys; price increases passed to customers via agreements.

Q&A Highlights ❓

• Capex on D2 250 plot ongoing as required.
• FY27 revenue growth and margin guidance positive, subject to tariff resolution and government trade initiatives.
• Q3 FY26 revenue improved YoY but below expectations.
• Capacity utilization sustainable at 75-80%; new machines reduce bottlenecks and improve delivery.
• Increased forging capacity utilization due to insourcing larger forgings previously outsourced.
• New Middle East customer with $90,000 initial order; potential $400,000-$500,000 annual revenue.
• No plans to enter valve manufacturing or casting; focus remains on valve components.
• Chinese supplier competition acknowledged, impacting some orders.
• Targeting >₹100 crore revenue in FY26; ₹130 crore potential within two years.
• Credit terms are credit-based with no advances except for new customers.