Shivalik Bimetal Controls has entered into a loan agreement with its wholly-owned subsidiary, Shivalik Engineered Products Private Limited. The transaction involves an unsecured loan of ₹11 crore, executed on August 21, 2026.

The funds are designated for two primary purposes: meeting the subsidiary's working capital requirements and facilitating the repayment of its term loans. As disclosed in the filing with stock exchanges, no security was provided by the borrower for this facility.

Transaction Details

The agreement falls under the purview of related party transactions as per SEBI Listing Regulations. However, because the counterparty is a wholly-owned subsidiary, the transaction is exempted under Regulation 23(5)(b) of the regulations. The company confirmed that the deal was conducted on an arm's length basis.

Regulatory Compliance

Shivalik Bimetal Controls made the disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The company stated that neither the promoters nor the promoter group have any interest in this specific transaction beyond their holding in the listed entity. There were no amendments or rescissions to the agreement as of the disclosure date.

Shivalik Bimetal Controls Limited has uploaded the transcription of its Q1FY27 earnings conference call, providing detailed insights into its financial performance and strategic outlook for the year. The call, held on August 7, 2026, confirmed the company’s consolidated net profit surge of 44.9% to ₹33.01 crore and a 33.4% rise in revenue from operations to ₹182.20 crore. Management attributed this growth to a shift toward higher value-added components, particularly in the shunt segment, and recovering demand in export markets.

The filing was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Shivalik Bimetal Controls Limited submitted the notice to both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd. (NSE) on August 13, 2026. Aarti Sahni, Company Secretary, certified the submission.

Financial Performance and Segment Mix

Consolidated revenue grew 33.4% year-on-year to ₹182.2 crore, while EBITDA increased 35.2% to ₹43.2 crore. Sequentially, revenue rose 13%, EBITDA 23%, and PAT 26%. Whole-time Director Sumer Ghumman noted that approximately half of the revenue growth in the contacts business was attributable to higher silver prices, with the remainder driven by volume and value addition. In the shunt segment, management stated that 70-75% of the value addition growth stemmed from converting strip sales into finished parts, rather than raw material cost inflation.

Geographically, India delivered broad-based growth across both bimetals and shunts. Europe saw strong growth led by shunts, while the Americas showed early improvement with 30% year-on-year growth in shunts. Asia remained weaker, though management indicated efforts to rebuild momentum in that region.

Strategic Shifts and New Verticals

The company is actively transitioning from commodity strip sales to integrated assemblies. Ghumman revealed that standalone revenue is expected to be split between 44-45% from bimetals and 54-55% from shunts in FY27. On a consolidated basis, the contacts subsidiary is projected to contribute 30-35% of total revenue, while new assemblies (PCB and busbar) are expected to account for 15-16% in their first year.

A key development is the operationalization of Phase I of the Pune manufacturing facility, which received Consent to Operate from the Maharashtra Pollution Control Board valid until June 30, 2032. This facility focuses on cell connecting systems for electric two-wheelers. Management outlined a potential runway of ₹300-400 crore over three years for this vertical, with incremental CAPEX estimated at ₹20-25 crore. The initial product targets safety-critical battery pack assemblies for a major two-wheeler OEM, with plans to expand to other brands and four-wheeler applications as the domestic ecosystem matures.

Governance and Operational Updates

During the Board meeting preceding the call, Mr. Kabir Ghumman offered himself for re-appointment as Managing Director. Mr. Rajeev Ranjan resigned as Chief Financial Officer effective October 31, 2026. M/s. Walker Chandiok & Co LLP was appointed as the new Statutory Auditor effective August 7, 2026, following the resignation of M/s. Arora Gupta & Co due to resource constraints.

Capacity utilization stands at 65-70% for welding processes in shunts, which can be scaled up quickly if needed. Thermostatic bimetal capacity utilization remains at 40-45%, though management reported early signs of quantity uptake in the domestic market driven by real estate and infrastructure development. Customer concentration risk has decreased significantly, with exposure to the largest customer expected to remain below 20% in FY27, down from historical peaks of 35-40%.

What the Numbers Show

The divergence between standalone revenue growth of 13.0% and consolidated growth of 33.4% underscores the increasing contribution of group entities, particularly the contacts subsidiary. Furthermore, the ability to grow EBITDA by 35.2% while employee costs increased suggests improving operational leverage. The strategic pivot toward value-added assemblies is evident in the reduction of low-margin strip sales to one-third of previous levels, replacing them with higher-margin finished components that are less susceptible to commodity price volatility.

Forward-Looking Events

Shareholders are advised to note the record date of August 26, 2026, for the final dividend declared for FY26. The 42nd Annual General Meeting is scheduled for September 2, 2026. Management expects full-year FY27 revenue growth in the range of 20-30%, contingent on execution in new assembly lines and continued export recovery.