Shilchar Technologies Limited held its Q4 FY26 Earnings Conference Call on May 5, 2026, hosted by Avendus Spark, with Chairman and Managing Director Alay J. Shah presenting the company's financial performance for the quarter and full year ended March 31, 2026. The transcript was subsequently filed with BSE Limited and the National Stock Exchange of India Limited on May 11, 2026, in compliance with Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Full Year FY26 Financial Performance

For the full year FY26, Shilchar Technologies delivered steady growth across key financial metrics, though management acknowledged that results could have been stronger absent external disruptions in Q4. The company's five-year compounding story remained intact, with revenue, EBITDA, and PAT growing at CAGRs of 38%, 77%, and 83% respectively.

Q4 FY26 Performance and Key Disruptions

Q4 FY26 came in weaker than expected, with revenue from operations of ₹152 crores, EBITDA margin of 21%, and PAT of ₹158 crores for the full year. Two external factors weighed on Q4 dispatches. First, uncertainty around US tariff policy in preceding quarters moderated order intake from US customers in Q3, leading to slower dispatches in Q4 despite a recovery in order inflows during the quarter. Second, a significant volume of shipments scheduled for delivery to Middle East customers in March 2026 could not be dispatched due to the crisis in West Asia and resulting logistics disruptions. Management clarified these shipments were deferred and not cancelled, with dispatches to the region resuming in April.

Raw Material Cost Pressures

Gross margin compression in Q4 was attributed to two factors: a lower export mix due to the Middle East shipping disruption, and a sharp rise in commodity prices. Transformer oil prices approximately doubled from February levels, while other raw materials increased in the range of 10% to 25%. Management noted that the rupee depreciation also contributed to higher import costs. Shilchar Technologies has approached customers for price revisions, with some already agreeing to the increases and active discussions ongoing with others. For new orders, the company stated it would quote prices reflecting current raw material costs, thereby protecting future margins.

Capacity, Capex, and Expansion Plans

Shilchar Technologies dispatched approximately 6,000 MVA in FY26 against an installed capacity of 7,500 MVA, representing a dispatch-based utilization of 79%. Management clarified that production-based utilization was higher, as some finished goods were carried as closing stock due to the March shipping disruption. The company's Gavasad Expansion 3 project, which will add 6,500 MVA and take total installed capacity to 14,000 MVA, remains on track for commissioning in April 2027. Civil foundation work is complete, PEB erection and utility infrastructure work is in progress, and all major production equipment has been ordered. The capital expenditure of approximately ₹120 crores is being funded entirely through internal accruals.

FY27 Outlook and Order Book

Management expressed confidence in resuming the company's growth trajectory from Q1 FY27, supported by a recovery in US order inflows following tariff policy amendments and the normalization of Middle East shipping. The current order book stands at approximately ₹452 crores, with exports comprising around 30% to 32% of the book. The company targets revenue of ₹800 crores to ₹850 crores for FY27, with the potential to reach ₹900 crores. Domestically, India commissioned a record 55 gigawatts of renewable energy capacity in FY26, continuing to underpin strong order inflows in Shilchar's domestic renewable transformer business. Once the new 14,000 MVA capacity is fully utilized, management indicated the company could achieve a turnover of approximately ₹1,500 crores, with full ramp-up of the new facility expected in FY29 to FY30.

Shilchar Technologies Limited's Board of Directors, at their meeting held on May 5, 2026, approved the audited standalone financial results for the quarter and financial year ended March 31, 2026. The board meeting commenced at 3:30 PM and concluded at 4:45 PM. The results were audited by statutory auditors M/s. CNK & Associates LLP, Chartered Accountants, who issued an unmodified audit opinion. The announcement was made pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In line with Regulation 30(6) and Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording of the conference call with analysts and investors held on May 5, 2026, to discuss the audited financial results for the quarter and year ended March 31, 2026, is now available on the company's website.

FY26 Financial Performance

Shilchar Technologies delivered a strong financial performance for the full year ended March 31, 2026, reporting revenue of ₹652 crore with EBITDA margins of 29%. Revenue from operations grew to ₹65,193.99 lakhs from ₹62,314.75 lakhs in the previous year. Net profit for FY26 stood at ₹15,816.11 lakhs compared to ₹14,685.18 lakhs in FY25. The company has also demonstrated strong long-term growth, with revenue, EBITDA, and profit after tax registering a CAGR of 38%, 77%, and 83%, respectively, over FY21–25. However, Q4 performance reflected a notable contraction, with EBITDA declining to 319M rupees from 712M rupees in the same quarter of the prior year, and EBITDA margin compressing to 21.05% from 30.73% year-on-year. The following table presents the key financial highlights for the year and the latest quarter:

Q4 EBITDA Performance

The quarter's operational profitability reflected a sharp year-on-year decline, as summarised below:

Management Commentary

Addressing the softer Q4 performance, Chairman & Managing Director Alay J. Shah noted that the year closed with two distinct macro and geopolitical developments that temporarily weighed on order intake and dispatches. On the export front, uncertainty around US tariff policy during the preceding quarters moderated order intake from US customers in Q3. While order inflows recovered in Q4, dispatches during the quarter remained slow given the lower order intake in Q3 and interim tariff policy uncertainty. With subsequent policy amendments and a robust demand outlook from US customers, both order intake and deliveries have picked up notably in Q1 FY27. Additionally, a significant volume of Q4 shipments scheduled for delivery to Middle East customers in March 2026 could not be dispatched due to the crisis in West Asia and resulting logistical disruptions. These shipments have been deferred, not cancelled, and dispatches to the region resumed in April. On the domestic front, demand has remained firm, particularly in the context of record renewable energy commissioning of ~55 GW in FY26.

FY27 Guidance and Capacity Outlook

During the post-results conference call, management provided detailed guidance for FY27 and beyond. For FY27, the existing 7,500 MVA capacity is expected to run at almost full utilisation, targeting 7,000 MVA in volume and 90-95% utilisation. The company targets INR800 crore in revenue for FY27, with confidence in potentially reaching INR850 crore to INR900 crore. Management also expects to maintain or increase EBITDA margins in FY27, aiming for similar levels as past years in the range of 29-31%. The Gavasad Expansion No. 3, adding 6,500 MVA to reach 14,000 MVA total capacity, remains on track for commissioning in April 2027, funded by INR120 crore from internal accruals. The new facility will enable production of transformers up to 160 MVA, 220 kV class, with a long-term potential turnover of around INR1,500 crores once fully utilised, expected in FY29-30. The new facility is expected to drive growth from FY28 onwards.

Balance Sheet Highlights

The company's total assets grew to ₹59,051.41 lakhs as at March 31, 2026, compared to ₹48,992.06 lakhs as at March 31, 2025. Total equity stood at ₹49,084.60 lakhs, comprising equity share capital of ₹1,144.02 lakhs and other equity of ₹47,940.58 lakhs. Key balance sheet items are summarised below:

Cash Flow Summary

For the year ended March 31, 2026, net cash from operating activities stood at ₹19,202.04 lakhs, a significant improvement from ₹3,956.26 lakhs in the previous year. Net cash used in investing activities was ₹16,939.47 lakhs, while net cash used in financing activities was ₹3,095.99 lakhs. Cash and cash equivalents at the end of the year were ₹2,148.32 lakhs.

Capital Markets Overview

As of May 5, 2026, Shilchar Technologies had a market capitalisation of ₹5,532 crore, with a current market price of ₹4,836.00 per share. The stock's 52-week high and low stood at ₹5,399.00 and ₹2,852.50, respectively, with 1.14 crore shares outstanding. The equity shares of the company were listed and commenced trading on the National Stock Exchange of India Limited (NSE) with effect from November 24, 2025.

Dividend and Corporate Actions

The Board of Directors recommended a final dividend of ₹12.50 per equity share of ₹10 each (125%) for FY26, subject to shareholder approval at the ensuing Annual General Meeting. This is consistent with the previous year's dividend of ₹12.50 per equity share. Additionally, based on the recommendation of the Nomination and Remuneration Committee, the board approved the re-appointment of Mr. Aashay Alay Shah as Whole Time Director with effect from November 1, 2026 to October 31, 2031, subject to shareholder approval. Mr. Aashay Alay Shah holds a Bachelor of Science in Electrical Engineering from the University of Illinois, Urbana-Champaign, USA, and a Masters in Business Administration from Cass Business School, London, UK.

Regulatory and Operational Notes

The company operates in a single business segment — Transformers & Parts. The Government of India notified the implementation of four new Labour Codes effective November 21, 2025, and the company has taken an additional charge of ₹18.29 lakhs for the quarter ended March 31, 2026, with a total charge of ₹60.54 lakhs for the full year. Earnings per share for previous quarters and periods have been restated to reflect the effect of bonus shares allotted in line with Ind AS 33 requirements. The official intimation was signed by Company Secretary & Compliance Officer Vishnupriya Civichan.