1. At a Glance – Blink and You’ll Miss the Profits
Shilchar Technologies is that kid in class who quietly topped the exam while everyone else was busy posting LinkedIn hustle reels. Market cap of ~₹3,862 Cr, current price ~₹3,376, zero debt, ROCE north of 71%, ROE touching 53%, and operating margins chilling at 31% like it’s no big deal. Q3 FY26 clocked ₹170 Cr in revenue with ₹42.3 Cr PAT, despite the stock correcting hard over the last 3–6 months. Exports now form 52% of revenue, capacity utilization hit 100%, and the company casually doubled installed capacity to 7,500 MVA. This is not a sleepy transformer PSU story—this is a Gujarat-based cash-generating machine that smells like copper, export dollars, and discipline. Curious how deep this rabbit hole goes? Keep reading.
2. Introduction – Not Your Average Transformer Story
Transformers are supposed to be boring. Shilchar clearly didn’t get that memo.
Founded as a niche manufacturer, the company has morphed into a serious exporter of power and distribution transformers, riding the global capex wave without shouting about it. While everyone else is busy selling “AI-enabled optimism,” Shilchar is selling actual iron, copper, and margins. FY22 to FY24 saw exports jump from 26% to 52%, capacity utilization surge from 50% to 100%, and profits explode faster than a Diwali rocket.
And the funniest part? No debt. None. Zilch. Zero. Banks are probably bored of them.
But is this growth sustainable, or is this just one of those “best quarter ever” honeymoon phases? Let’s open the
hood.
3. Business Model – WTF Do They Even Do?
In simple terms: they make transformers and ship them everywhere.
- Distribution transformers: 5 KVA to 3,000 KVA
- Power transformers: 3 MVA to 15 MVA
- Electronics & telecom transformers
- Ferrite transformers (new kid on the block)
Customers include private utilities, renewable energy players (solar, wind, hydel), cement, sugar, steel, hydrocarbons, and power plant developers. About 60% of revenue comes from the power & energy sector.
Execution cycle? 3–9 months.
Repeat orders? Yes.
Top 5 domestic clients now form 62% of revenue (up from 44%).
Basically, once Shilchar enters your vendor list, you don’t let go easily. Sticky, boring, profitable. The holy trinity.
4. Financials Overview – Numbers That Make Auditors Smile
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 170 | 118 | 171 | 44% | -0.6% |
| EBITDA (₹ Cr) | 52 | 32 | 54 | 63% | -3.7% |
| PAT (₹ Cr) | 42.3 | 26 | 46 | 62% | -8.0% |
| EPS (₹) | 37.01 | 22.89 | 40.16 | 61.7% | -7.8% |
Annualised EPS (Q3 Rule):
Average of Jun, Sep, Dec FY26 EPS = (36.27 + 40.16 + 37.01) / 3 = ₹37.81
Annualised EPS = ₹151.2
Yes, margins
