Vilas Transcore Limited has released the transcript of its earnings conference call held on May 12, 2026. The session, facilitated by PhillipCapital (India) Private Limited, discussed the audited financial results for the half year and full year ended March 31, 2026. Management provided detailed guidance for the financial year 2027, outlining expansion plans and capacity utilization targets.

Financial Performance and FY26 Review

During the financial year 2026, the company achieved approximately 64% year-on-year volume growth, driven by strong demand from the transformer and power equipment industries. Revenue grew by around 30%, with the difference attributed to a sharp correction in CRGO steel prices during the year. The overall EBITDA margin stood at 11.17% compared to 12.68% in the previous year, while the PAT margin was 8.6% versus 9.8% last year. The company remains net debt-free.

Capacity Expansion and New Products

A major milestone in FY26 was the ramp-up of the new Unit 3 facility, increasing CRGO lamination capacity from 12,000 metric tons per annum to 36,000 metric tons per annum. Additionally, the company added nanocrystalline cores with an installed capacity of 240 metric tons per annum and transformer radiators with a capacity of 7,200 metric tons per annum. Commercial sales for radiators commenced in April 2026.

The company is also expanding into copper conductors with a Phase 1 capacity of 1,500 to 1,800 metric tons per annum. Trial production is expected by the end of September 2026, with revenue contribution likely from H2 FY27. Furthermore, Vilas Transcore announced a new entity to manufacture high-voltage bushings, initially holding a 25% equity stake.

Guidance for FY27

Management has provided guidance for the financial year 2027, targeting around 45% to 50% growth in CRGO lamination volume. The company aims to cater to approximately 30,000 metric tons of demand. Revenue is projected to be between INR750 crores and INR800 crores, assuming an average CRGO price of INR210 per kg. EBITDA and PAT margins are expected to remain stable at present levels.

Operational Outlook

The company noted that while CRGO prices have corrected by nearly 15% to 20% from peak levels due to increased supply from Chinese mills, it expects prices to stabilize or improve if anti-dumping duties are implemented. Management emphasized that the normalized EBITDA margin is typically around 11-12%, with net margins around 7-8%. The transcript is available on the company's website.

Vilas Transcore Limited, an ISO 9001:2015 certified manufacturer of transformer components based in Vadodara, reported its audited standalone financial results for the half year and year ended March 31, 2026, approved by the Board of Directors at its meeting held on May 11, 2026. The company's revenue from operations rose to ₹46,067.04 Lacs in FY26 from ₹35,305.12 Lacs in FY25, reflecting approximately 30% growth, while profit after tax increased to ₹3,956.44 Lacs from ₹3,449.27 Lacs. The statutory auditors, M/s. Talati & Talati LLP, issued an unmodified opinion on the standalone audited financial results. The performance was driven by strong demand, optimal capacity utilisation, and contributions from newly commissioned CRGO and nanocrystalline core capacities.

FY26 Financial Performance

The company's audited financial results for FY26 reflect top-line growth alongside some margin compression, primarily attributed to initial operating and establishment expenses related to the new unit during its ramp-up phase, as well as a decline in CRGO steel prices to around Rs 180 to Rs 185 per kg. The following table summarises key financial metrics from the audited standalone statement of profit and loss (amounts in ₹ Lacs):

For the half year ended March 31, 2026, revenue from operations stood at ₹23,190.64 Lacs, compared to ₹19,061.70 Lacs in the half year ended March 31, 2025. Profit after tax for H2 FY26 was ₹1,518.33 Lacs against ₹2,051.58 Lacs in H2 FY25. Despite margin headwinds, the company stated that efficient inventory management and operational controls helped limit the overall impact on profitability. Production volume grew significantly, reaching 19,856 MTPA in FY26 compared to 12,069 MTPA in FY25 and 10,927 MTPA in FY24.

Business and Operational Highlights

FY26 marked several operational milestones for the company. The Nanocrystalline Core facility was commissioned during the year and contributed revenue of Rs 3.48 Cr during H2 FY26, with sales volume of approximately 30,250 kg. The company expects to achieve capacity utilisation of around 15 MT per month (~180 MTPA) in FY27. The radiator manufacturing plant has recently commenced operations and is expected to start contributing to revenues going forward.

Key operational developments during FY26 include:

• Achieved approximately 50% YoY volume growth and approximately 30% YoY revenue growth
• Nanocrystalline Core facility commissioned, contributing Rs 3.48 Cr revenue in H2 FY26 with approximately 30,250 kg sales volume
• Radiator manufacturing plant recently commenced commercial production
• Specialised and customised machinery for the copper conductors facility has arrived; installation and erection activities are underway
• Trial production for copper conductors expected by end of September 2026, with revenue contribution likely from H2 FY27 onwards
• Incorporated a new entity for manufacturing High Voltage Bushings ranging from 12kV to 400kV, with Vilas Transcore initially holding a 25% equity stake

Capacity Expansion and Product Portfolio

The company has tripled its installed CRGO lamination capacity from 12,000 MTPA to 36,000 MTPA, with New Unit 3 commissioned in July 2025. The manufacturing facilities span over 500,000 sq ft in Vadodara. The following table outlines the current installed capacity across product lines:

For the copper conductors facility, the estimated capex is Rs 25 to 30 Crs, to be funded through term loan and internal accrual. Phase I products include Copper PICC, CTC Conductors, and Paper Insulated Aluminium Conductors, with Phase II targeting Busbars and Stripes. The new entity for High Voltage Bushings will initially focus on R&D and product development, followed by phased commercialisation.

Balance Sheet and Cash Flow

As per the audited standalone balance sheet as at March 31, 2026, total assets stood at ₹40,647.30 Lacs compared to ₹35,027.62 Lacs as at March 31, 2025. Equity share capital remained unchanged at ₹2,448.00 Lacs, while other equity increased to ₹30,404.81 Lacs from ₹26,457.30 Lacs. Short-term borrowings rose to ₹3,896.22 Lacs from ₹1,140.97 Lacs, primarily to support higher working capital requirements for business growth, capacity expansion, and ramp-up of new facilities. The company noted it remains net debt free. The following table presents key balance sheet highlights (amounts in ₹ Lacs):

The audited cash flow statement for FY26 reflects the following position (amounts in ₹ Lacs):

The company holds a credit rating of LT: ICRA A-(Stable) and ST: ICRA A2+. Return on Equity (RoEA) stood at 13.1% and Return on Capital Employed (RoCEA) at 14.5% for FY26. It is also noted that FY26 marks the company's first-time adoption of Indian Accounting Standards (Ind AS), with a transition date of April 1, 2024, as the company's net worth exceeded ₹250 crore as at March 31, 2025.

IPO Fund Utilisation

The company raised ₹9,525.60 Lacs through its IPO, with statutory auditors certifying utilisation as at March 31, 2026. The following table details the utilisation of IPO proceeds (amounts in ₹ Lacs):

The auditors confirmed there is no material deviation or variation in the utilisation of IPO proceeds. The unutilised amount of ₹500.00 Lacs is temporarily invested in fixed deposits and a separate bank account in compliance with applicable laws.

FY27 Guidance and Strategic Outlook

For FY27, the company has provided the following guidance:

The company is also pursuing approval from Power Grid Corporation of India (PGCIL), which, once received, is expected to enable access to larger, high-value government and institutional orders, open supply of higher KV transformer components, and provide eligibility to partner with global MNCs. Promoters held 73.1% of the shareholding as of March 2026, with public shareholders at 21.6%, DIIs at 3.2%, and FIIs at 2.1%.