Shilchar Technologies Limited has informed stock exchanges of an order dated 30th April, 2026, issued by the Commissioner of Central Tax (Appeals), CGST and Central Excise, Vadodara, pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The order was received by the company via email on 12th May, 2026, and the disclosure was filed on 13th May, 2026, by the Company Secretary and Compliance Officer.

Background of the GST Demand

The matter originates from a demand of Rs. 3,19,24,454/- that was confirmed by the Joint Commissioner of Central Tax, CGST and Central Excise, Vadodara - I, vide order VAD-GST-001-JC-111-2025-26 dated 26th March, 2026. The original demand was accompanied by applicable interest and a penalty equivalent to the tax demand of Rs. 3,19,24,454/-.

Key Details of the Appeal Order

The following table summarises the key particulars of the order as disclosed by the company under Regulation 30 of the SEBI Listing Regulations:

Outcome of the Appellate Order

The Commissioner of Central Tax (Appeals) was pleased to set aside the demand of Rs. 3,17,73,217/-, which inter-alia includes a direction to re-determine the demand of Rs. 1,64,50,315/- — originally raised under Section 74 of the CGST Act, 2017 — as per the provisions of Section 73, by directing the proper officer to do so while exercising powers under Section 75(2) of the CGST Act, 2017. The interest and penalty consequent to the tax demand of Rs. 3,17,73,217/- has also been set aside as part of the appellate order.

Impact on the Company

Shilchar Technologies has stated that the aforesaid order does not have any material impact on the financial position, operations, or other activities of the company. The disclosure was made in compliance with Regulation 30 read with Para A of Part A of Schedule III of the SEBI Listing Regulations, as well as SEBI circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

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.