Shanthi Gears FY26: Revenue ₹518.72 Cr, Record Q4 Order Booking
Shanthi Gears reported a 14% decline in FY26 revenue to ₹518.72 Cr, with PBT down 21% to ₹102.70 Cr, attributed to lower order inflows. Despite this, the company achieved a record Q4 order booking of ₹178 Cr, an 89% increase, and maintained a strong ROIC of 39%. The Board recommended a total dividend of ₹5 per share and announced key governance changes, including the appointment of Mr. K Ilango as Independent Director.
*this image is generated using AI for illustrative purposes only.
Shanthi Gears Limited, a subsidiary of Tube Investments of India Limited (TII), had its Board of Directors approve the audited financial results for the quarter and year ended 31 March 2026 at its meeting held on 5 May 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory audit was conducted by M/s. MSKA & Associates, Chartered Accountants, who issued an unmodified opinion on the standalone financial results. The company's main business is the manufacture of Gearboxes and Gear Products, with no separate reportable segments as per Ind AS 108.
Financial Performance: FY26 and Q4 FY26
For the full financial year ended 31 March 2026, Shanthi Gears recorded revenue from operations of ₹518.72 crores, a 14% de-growth compared to ₹604.62 crores in FY25, attributed to lower order inflow in H1 and schedule deferment by customers. Total income for FY26 stood at ₹538.35 crores against ₹619.28 crores in the previous year. Profit before tax (PBT) for FY26 was ₹102.70 crores, reflecting a 21% de-growth over the previous year's ₹130.09 crores, primarily on account of lower revenue. The company achieved a Return on Invested Capital (ROIC) of 39% and Free Cash Flow of ₹29.83 crores during the financial year.
The following table summarises the key financial metrics for the quarter and year ended 31 March 2026:
| Metric: | Q4 FY26 | Q3 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|---|
| Revenue from Operations (₹ Cr): | 135.10 | 116.82 | 153.21 | 518.72 | 604.62 |
| Other Income (₹ Cr): | 5.85 | 4.07 | 4.01 | 19.63 | 14.66 |
| Total Income (₹ Cr): | 140.95 | 120.89 | 157.22 | 538.35 | 619.28 |
| Total Expenses (₹ Cr): | 115.92 | 97.74 | 125.81 | 430.87 | 489.19 |
| Profit Before Tax & Exceptional Items (₹ Cr): | 25.03 | 23.15 | 31.41 | 107.48 | 130.09 |
| Exceptional Items (₹ Cr): | 3.22 | 1.56 | — | 4.78 | — |
| Profit Before Tax (₹ Cr): | 21.81 | 21.59 | 31.41 | 102.70 | 130.09 |
| Profit After Tax (₹ Cr): | 16.27 | 16.19 | 22.46 | 76.66 | 96.03 |
| Total Comprehensive Income (₹ Cr): | 15.17 | 16.30 | 22.97 | 75.43 | 96.04 |
| Basic EPS (₹): | 2.12 | 2.11 | 2.93 | 9.99 | 12.52 |
| Diluted EPS (₹): | 2.12 | 2.11 | 2.93 | 9.99 | 12.52 |
Exceptional Items: New Labour Code Impact
The financial results include an exceptional item pertaining to the statutory impact of the new Labour Code. On 21 November 2025, the Government of India notified four Labour Codes consolidating 29 existing labour laws. The company assessed the incremental impact based on actuarial valuation, resulting in a provision for defined benefit obligations of ₹3.22 crores for Q4 FY26 and ₹4.78 crores for the full year FY26, presented as "Statutory impact of new labour code" under Exceptional Items. The company continues to monitor the finalisation of Central/State Rules and related government clarifications.
Balance Sheet and Cash Flow Highlights
As at 31 March 2026, total assets stood at ₹555.59 crores compared to ₹504.32 crores as at 31 March 2025. Total equity increased to ₹440.06 crores from ₹402.99 crores, supported by other equity of ₹432.39 crores. Net cash flow from operating activities for FY26 was ₹70.10 crores against ₹90.87 crores in FY25, while net cash used in investing activities was ₹45.30 crores, reflecting capital expenditure of ₹52.98 crores. Cash and cash equivalents at the end of FY26 stood at ₹1.33 crores compared to ₹15.00 crores at the beginning of the year.
| Parameter: | FY26 | FY25 |
|---|---|---|
| Total Assets (₹ Cr): | 555.59 | 504.32 |
| Total Equity (₹ Cr): | 440.06 | 402.99 |
| Other Equity (₹ Cr): | 432.39 | 395.32 |
| Net Cash from Operating Activities (₹ Cr): | 70.10 | 90.87 |
| Net Cash Used in Investing Activities (₹ Cr): | (45.30) | (38.08) |
| Capital Expenditure (₹ Cr): | 52.98 | 24.35 |
| Cash & Cash Equivalents at Year End (₹ Cr): | 1.33 | 15.00 |
Record Order Booking and Dividend Announcement
Shanthi Gears achieved its highest-ever order booking of ₹178 crores in Q4 FY26, representing 89% growth over Q4 FY25. The unexecuted order book as on 31 March 2026 stood at ₹349 crores. The Board of Directors recommended a final dividend of ₹2 per equity share of ₹1 each for FY26. Together with the interim dividend of ₹3 per share paid on 20 February 2026, the total dividend for FY2025-26 amounts to ₹5 per share. The final dividend, subject to shareholder approval at the 53rd Annual General Meeting scheduled for 29 July 2026, will be paid on or before 27 August 2026. The record date for determining eligible members is 17 July 2025.
Board-Level Changes
The board meeting also noted several governance developments. Mr. L Ramkumar (DIN: 00090089) retired as Non-Executive & Independent Director on completion of his term by 6 May 2026. In his place, the Board appointed Mr. K Ilango (DIN: 00124115) as Additional Director designated as Non-Executive & Independent Director for a term of five years from 5 May 2026 to 4 July 2031, subject to shareholder approval. Mr. K Ilango holds a Bachelor's degree in Engineering with nearly three decades of experience in the manufacture of Auto Components and serves as Managing Director of RSM Autokast Private Limited, Coimbatore. Additionally, Mr. Suresh P L, Head – Technology, will be stepping down effective the closing hours of 13 June 2026 to pursue career prospects outside the company.
| Board Change: | Details |
|---|---|
| Director Retired: | Mr. L Ramkumar (DIN: 00090089) |
| Retirement Date: | 6 May 2026 |
| New Appointment: | Mr. K Ilango (DIN: 00124115) |
| Designation: | Non-Executive & Independent Director |
| Appointment Term: | 5 May 2026 to 4 July 2031 |
| Senior Management Exit: | Mr. Suresh P L, Head – Technology |
| Effective Date of Exit: | 13 June 2026 |
Historical Stock Returns for Shanthi Gears
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.53% | -3.42% | +3.55% | -1.75% | -8.26% | +234.77% |
With a record order book of ₹349 crores as of March 2026 and 89% Q4 order growth, can Shanthi Gears realistically convert this pipeline into double-digit revenue recovery in FY27, and which end-user sectors are driving the surge?
Given that capital expenditure nearly doubled to ₹52.98 crores in FY26 while cash reserves fell sharply to ₹1.33 crores, how will the company fund further capacity expansion without straining its balance sheet or resorting to debt?
With the Head of Technology, Mr. Suresh P L, departing in June 2026, what risks does this leadership gap pose to Shanthi Gears' product development roadmap and its ability to compete in higher-value gear segments?
17
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
