01 — At a Glance
A Company So Boring They Forgot to Tell Anyone How Interesting It Is
- 52-Week High / Low₹605 / ₹342
- Q3 FY26 Revenue₹134 Cr
- Q3 FY26 PAT₹22.9 Cr
- TTM EPS₹15.76
- Q3 EPS Annualised₹15.40
- Book Value / Share₹77.2
- Price to Book5.26x
- Debt to Equity0.11x
- Interest Coverage27.7x
- Operating Margin22.9%
Flash Summary: Shivalik Bimetal delivered Q3 FY26 revenue of ₹134 crore with PAT of ₹22.9 crore (up 25.4% YoY on profit). They just announced a ₹20 crore Pune facility to assemble EV busbars and connectors. Return in 3 months: -8.51%. Stock is down, nerves are raw, but fundamentals are building something real. The market is either genius or sleeping. You decide which side you want to be on.
02 — Introduction
The Quiet Metal Bender In The Age Of EVs
Picture this: you’re a 2-wheeler EV maker in India. You need precision copper busbars and connectors to handle current in your battery pack. You can’t afford a joint that comes loose. You Google “electron beam welding in India” and your options are:
Option A: Some factory in China that takes 8 weeks and costs a lot.
Option B: Shivalik Bimetal, Solan, Himachal Pradesh.
There are no other options. That’s not hype. That’s the entire addressable market in India for niche precision welding. Shivalik has been quietly running this show since 1984—manufacturing thermostatic bimetal strips (the things in circuit breakers that flick when they get hot), shunt resistors (sensing current in smart meters and EVs), and electron beam welded components that let electricity flow safely without joules burning your hand off.
Q3 FY26 just confirmed that the EV tailwind is real. The Pune facility—a forward integration into busbar assembly—isn’t speculative. It’s “actual business that is starting,” as the CFO said in the February 2026 earnings call. Translation: they have orders. Real ones. That need to be filled by March 2026 onwards. The revenue potential for this assembly business alone is ₹250–300 crore over three years. For a company currently at ₹541 crore TTM revenue, that’s not incremental. That’s revolutionary.
CRISIL A/Stable Rating (Mar 2026): CRISIL reaffirmed ratings on ₹115 crore bank facilities, acknowledging “longstanding presence in niche industry with negligible competition.” They expect gearing to improve below 0.05x over the medium term thanks to capex being funded entirely through internal accruals. When a credit rating agency notices you have zero debt, it’s not small talk.
03 — Business Model: What Do These People Even Make?
Joining Metals So Your EV Doesn’t Explode. You’re Welcome.
Shivalik makes three core things. First: thermostatic bimetal strips—these are literally two different metals bonded together. When temperature changes, they bend. They power the circuit breakers in your home, your car, and every building that’s ever had electricity. 80% of their bimetal revenue comes from switchgear (MCBs, that flip switch thing). The rest spreads across appliances, energy meters, and automotive.
Second: shunt resistors. These are copper or stainless steel components that measure electrical current. Every EV battery management system needs them. Every smart meter in India has at least one. Shivalik supplies both to Vishay (the largest global supplier) and direct to OEMs. This segment is growing because EVs are exploding (figuratively, not literally—that’s the point).
Third, and brand new: busbar assemblies. Busbars are the conductive rails that move electricity between battery pack and motor. Shivalik’s electron beam welding can fuse copper to stainless steel with zero loss in conductivity. That’s the moat. No domestic competitor does EB welding at scale. The barrier to entry? Thirty years of experience, ₹100+ crores in cumulative capex, and technical depth that money alone cannot buy.
Bimetal Revenue55%of revenue mix
Shunt Resistors45%of revenue mix
Exports~70%of sales
Countries Served38+global reach
The Forward Integration Play (Feb 2026 Update): The Pune facility is real and happening. Management guided ₹70–75 crore assembly revenue in FY27, scaling to ₹150–200 crore in FY28, and ₹250–300 crore by FY29. These are orders already signed, not blue-sky fantasy. The first two EV 2-wheeler customers are “number one and number two” in India (names under NDA). This is how transformations actually start—not with viral TikTok videos, but with factories ramping in March 2026 because someone signed a purchase order in July 2025.
04 — Financials Overview
Q3 FY26: The Numbers Don’t Lie (They Just Play Tariff Roulette)
Result type: Quarterly Results | Q3 FY26 EPS: ₹3.85 | TTM EPS: ₹15.76 | Annualised EPS (Q3×4): ₹15.40
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 134 | 123 | 137 | +8.88% | -2.19% |
| Operating Profit | 32 | 25 | 31 | +28.0% | +3.23% |
| Operating Margin % | 24% | 20% | 23% | +400 bps | +100 bps |
| PAT | 22.9 | 18.2 | 25 | +25.4% | -8.4% |
| EPS (₹) | 3.85 | 3.17 | 4.31 | +21.5% | -10.7% |
Margin Expansion Story: Operating margin expanded from 20% (Q3 FY25) to 24% (Q3 FY26). That’s 400 basis points. The CFO told investors this was driven by (1) product mix shifting towards higher-value components (strip exports to Vishay moved from raw material to finished EB-welded parts), and (2) shunt volumes recovering above “sweet spot” utilization. Revenue dipped slightly QoQ due to tariff headwinds from the US market, but management signaled “considerable improvement this quarter and the coming quarters.” Translation: Q4 FY26 could be even better.
💬 When a company grows profit 25% YoY while revenue grows just 9% YoY, that’s leverage. That’s pricing power. That’s efficiency. But the stock is down 8.51% in 3 months. Overreaction or hidden red flag? What do you think?
05 — Valuation Discussion – Fair Value Range
What Is a Precision Metal Welding Company Actually Worth?
