While most of India was busy arguing over who makes the best Diwali sweets, Shilchar was quietly minting 40% profit growth. Yes, the company that literally powers the power sector is now generating enough current to light up Dalal Street’s mood. Between transformer backlogs and US tariffs, Alay Shah’s calm voice on the call sounded like someone who knows he’s in control of a very expensive power switch. And the best part? This “Made in Vadodara” story is now exporting shockwaves abroad. Keep reading — the sparks get brighter, the margins get juicier ⚡😏
2. At a Glance
Revenue up 31% YoY – Management swears it’s not due to load-shedding magic.
EBITDA Margin steady at 31% – Stability so smooth, it could qualify as a transformer oil grade.
Net Profit ₹46 Cr (+40% YoY) – Profits shocked the analysts harder than a live wire.
Order Book ₹300 Cr+ – Enough backlog to keep the machines humming through Diwali 2026.
Target FY26 Revenue ₹750 Cr – Confidently cautious, like an electrician wearing rubber gloves.
Capex ₹90 Cr (internal accruals) – No loans, no sparks, pure operational current. ⚙️
3. Management’s Key Commentary
“Revenue from operations stood at ₹171 Cr, up 31% YoY.” (Translation: The grid didn’t trip, and neither did our top line.)
“EBITDA margins at 31% are in line with last year.” (They found the sweet spot where efficiency meets Gujarati thriftiness.)
“Net profit grew 40% YoY.” (The meter’s spinning faster than ever—and nobody’s complaining.)
“Order book at ₹300 Cr with strong visibility.” (In investor-speak: we’re booked till the next solar eclipse.)
“The US tariff of 50% hasn’t hurt; customers are paying up.” (Imagine selling at higher prices because of tariffs — now that’s desi jugaad globalization 😏.)
“Expansion project will add 6,500 MVA taking total to 14,000 MVA by April 2027.” (Translation: More power to us — literally.)
“Funded through internal accruals of ₹90 Cr.” (When you make this much money, banks become optional.)
“We’ll make 220 kV transformers next.” (From solar parks to shock parks — Shilchar just levelled up.)
4. Numbers Decoded
Metric
Q2FY26
YoY Change
One-Line Analysis
Revenue from Operations
₹171 Cr
+31%
Transformers running at full load.
EBITDA
₹53 Cr
+29%
Margins steady – not even a flicker.
EBITDA Margin
31%
Flat
The CFO’s blood pressure too stayed flat.
Net Profit
₹46 Cr
+40%
Profits buzzing louder than substations.
Order Book
₹300 Cr+
+15% Seq.
Pipeline thick enough to need voltage control.
Capacity Utilisation
90–95%
+10 p.p.
They’re sweating, but the machines are smiling.
FY26 Revenue Guidance
₹750 Cr
—
Conservative? Or just waiting to surprise.
Capex (Gavasad Expansion)
₹90 Cr
New
Funded by profits, powered by confidence.
At 14,000 MVA total by FY27, Shilchar’s revenue potential hits ₹1,500 Cr. Management casually dropped that like it’s just another circuit breaker.
5. Analyst Questions
Q: “Will 50% US tariffs hurt exports?” A: “Nope, buyers still paying full price.” (Because apparently, even import duties can’t dim Shilchar’s shine.)
Q: “Any supply chain issues?” A: “All local sourcing. No foreign fuse drama.”
