CMP: ₹456.05 | Market Cap: ₹1,900 Cr+ | Sector: Power Equipment Components | FY27 Target: ₹1,000 Cr Revenue
⚡ At a Glance
- FY25 Revenue: ₹362 Cr (+15% YoY)
- PAT: ₹34 Cr (+48% YoY)
- EBITDA: ₹54 Cr | Margin: 14.8%
- ROE: 16.4% | ROCE: 17.7%
- Debt: Net debt free
- Capacity Expansion: From 12,000 TPA → 36,000 TPA
- New Products: Radiators + Nanocrystalline cores = higher margin bets
- FY26 Target: ₹600 Cr revenue
- FY27 Target: ₹1,000 Cr revenue
🏭 Business Model: Infra ka Engine Room
Vilas Transcore isn’t building transformers — they build the most critical parts inside them:
| Product Segment | Use Case |
|---|---|
| CRGO Lamination Cores | Power & Distribution Transformers |
| Radiators (New) | Cooling units for transformers |
| Nanocrystalline Cores | High-frequency & energy-efficient tech |
They supply to every big transformer maker, with 60–80% of FY25 sales from power and solar inverter-duty transformers.
🧱 Expansion Highlights
| Segment | FY25 Capacity | Post-Expansion | Revenue Target (FY26) |
|---|---|---|---|
| CRGO Laminations | 12,000 TPA | 36,000 TPA | ₹500–₹520 Cr |
| Radiators | New | 7,200 TPA | ₹35–₹36 Cr |
| Nanocrystalline Core | Small unit | ~30–40 MT/month | ₹50 Cr |
- Commercial production for radiators and nano cores to start July 2025
- FY26: Expect 50% utilization of new capacity
- FY27: Aim for 80–100% utilization
💸 Financials (FY25 vs FY24)
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹362 Cr | ₹315 Cr | +15% |
| EBITDA | ₹54 Cr | ₹35 Cr | +55% |
| PAT | ₹34 Cr | ₹23 Cr | +48% |
| EBITDA Margin | 14.8% | 11.1% | Up 370 bps |
| PAT Margin | 9.4% | 7.3% | Up 210 bps |
📦 Inventory & Receivables — What’s Going On?
Both jumped — but here’s why:
- 📈 Receivables: Higher Q4 sales and extended credit to long-term clients (~60–90 days cycle)
- 🏗️ Inventory: Stockpiling CRGO for new plant, awaiting BIS clearance before shifting stock
- 💰 Capex so far: ₹50 Cr of planned ₹90 Cr already spent
🧠 EduInvesting Take
This isn’t just another SME stock running on hope. Vilas is doing the boring hard work of building, expanding, and delivering — and that’s rarer than a CRGO coil in a China-US trade war.
What we love:
- Strong core CRGO biz already profitable
- New product additions have higher EBITDA margins:
- Radiators: 20–22%
- Nano cores: 25%+
- Order visibility till H1 FY26 already in place
- Customers asking them to scale, not vice versa
What we’re watching:
- PGCIL approvals (starts July 2025; will take 6–7 months)
- Execution of new plant without margin slippage
- Keeping working capital tight as inventory balloons
🎯 What They’re Saying
- FY26 Target: ₹600 Cr Revenue, ~14% blended EBITDA margin
- FY27 Vision: ₹1,000 Cr Revenue
- Exports: 2–3% currently, expect 5–10% by FY27
- Capex Return: 10x turnover expected from ₹75 Cr expansion
🔍 Competitive Landscape
| Competitor Name | Notes |
|---|---|
| Amod Stampings | Large player |
| Vardhaman Stampings | Pan-India CRGO presence |
| KRYFS Power | Diversified power infra supply |
| Mahindra (Group Co.) | Large-format supplier |
| Jay Bee Laminations | Smaller capacity, niche players |
Vilas Transcore is aiming to scale while staying in high-margin, low-competition zones. Radiators and nano cores are niche, and not all peers are present there.
🧨 Risks & Red Flags
- PGCIL approval delays could push high-voltage contracts
- Margin pressure if CRGO prices spike again
- Execution risk if radiator or nano product lines don’t scale as expected
- Export scale-up may face China price wars
🧾 FY26 Guidance (Management Commentary)
- CRGO: 24,000 TPA target (50% of new capacity + full old)
- Radiator: ₹35–36 Cr
- Nano core: ₹50 Cr
- Export share: 5–10% by FY27
- Blended EBITDA margin: ~14%
🏁 Final Word
Vilas Transcore isn’t playing the valuation game — they’re playing the long game. At ₹456 CMP, it trades at ~13x FY25 earnings — reasonable for an SME about to triple capacity and diversify into higher-margin exports.
We don’t know if this stock will 10x. But we do know: they’re not just soldering cores, they’re building a business.
🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe
Tags: Vilas Transcore FY25, CRGO Lamination, Radiator Plant, Nanocrystalline Cores, PGCIL Approval, SME Infra Stocks, Power Sector India, EduInvesting
