Shilchar Technologies Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Shilchar Technologies Ltd filed with BSE on 11 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Shilchar Technologies reported FY26 revenue of Rs 652 crore, up 5% year-on-year, with EBITDA margin of 29% and PAT of Rs 158 crore, up 8%. Q4 FY26 was weaker than expected due to delayed US tariff-related order intake and Middle East shipping disruptions that pushed out export dispatches, compressing gross and EBITDA margins. Management said both issues were temporary, dispatches resumed in April, and it expects growth to continue in FY27 supported by an order book of about Rs 452 crore and order visibility of roughly Rs 800 crore.
Numbers mentioned
Revenue from operations: INR652 crores (FY26)
p. 3
“For the full year '26, Shilchar Technologies delivered revenue from operations of INR652 crores, reflecting around 5% growth year-on-year with EBITDA of INR190 crores and an EBITDA margin of 29%.”
Alay Shah, page 3 of the filed PDF · View the filing
PAT: INR158 crores (FY26)
p. 3
“Profit after tax for the year stood at INR158 crores, up 8% on year-on-year basis with an EPS of INR138.”
Alay Shah, page 3 of the filed PDF · View the filing
Q4 Revenue from operations: INR152 crores (Q4 FY26)
p. 3
“Turning to Q4 specifically, revenue from operations came in at INR152 crores with EBITDA margin at 21% and PAT at INR28 crores.”
Alay Shah, page 3 of the filed PDF · View the filing
Cash and cash equivalents: INR246 crores (FY26 year end)
p. 3
“Shilchar remains debt free with cash and cash equivalents of INR246 crores at the end of financial year '26, a part of which will be used to financing our ongoing capex.”
Alay Shah, page 3 of the filed PDF · View the filing
Operating cash flow: INR192 crores (FY26)
p. 4
“Operating cash flow for the year stood at INR192 crores.”
Alay Shah, page 4 of the filed PDF · View the filing
Order book: INR452 crores
p. 5
“As of now, we have an order book of almost INR452 crores.”
Alay Shah, page 5 of the filed PDF · View the filing
Order visibility for FY27: approximately INR800 crores (FY27)
p. 4
“Our business outlook remains strong with order visibility for financial year '27 of approximately INR800 crores, supported by robust inquiries from both domestic and export customers.”
Alay Shah, page 4 of the filed PDF · View the filing
Total inventory: close to INR100 crores (as of March 31, 2026)
p. 6
“No, so, I mean, as of year-end March 31, we have a total inventory of close to INR100 crores.”
Alay Shah, page 6 of the filed PDF · View the filing
Q4 export revenue: INR52 crores (Q4 FY26)
p. 7
“Yes, so in Q4, our total export was around INR52 crores and the domestic is around INR100 crores.”
Alay Shah, page 7 of the filed PDF · View the filing
Middle East revenue share: 30% (FY26)
p. 7
“So, for the total turnover, we did almost 30% sales, I mean 30% revenue came from the export to the Middle East in FY25- FY26.”
Alay Shah, page 7 of the filed PDF · View the filing
US export revenue share: 18% to 19% (FY26)
p. 16
“So we have done around 18% to 19%. I mean, 18% to 19% of our revenue has come from the US exports.”
Alay Shah, page 16 of the filed PDF · View the filing
FY26 MVA volume: almost 6,000 MVA (FY26)
p. 12
“I think so almost 6,000 MVA.”
Alay Shah, page 12 of the filed PDF · View the filing
Capacity utilization: 79% (FY26)
p. 13
“So 79% or almost 6000 MVA is the dispatches we have done in '26.”
Sayam Pokharna, page 13 of the filed PDF · View the filing
Capex for Gavasad expansion: approximately INR120 crores
p. 4
“The capital expenditure of approximately INR120 crores is being funded entirely through internal accruals.”
Alay Shah, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue — INR800 crores · FY27
stated firmly by Alay Shah
p. 5
“Now, so our target for the entire year is INR800 crores and that we are very confident to achieve.”
Alay Shah, page 5 of the filed PDF · View the filing
Revenue — INR800 crores to INR850 crores, potentially INR900 crores · FY27
stated conditionally by Alay Shah
p. 9
“It can reach to INR900 crores also. I mean, it's not that we are not targeting, but we have to take a conservative approach when we say any figures.”
Alay Shah, page 9 of the filed PDF · View the filing
EBITDA margin — 29% to 31% · FY27
stated as an aspiration by Alay Shah
p. 7
“Yes, we'll do our best to maintain the same margin or even increase the margin.”
Alay Shah, page 7 of the filed PDF · View the filing
New facility commissioning — 6,500 MVA additional capacity, taking total to 14,000 MVA · April '27
stated firmly by Alay Shah
p. 4
“our Gavasad expansion number three, which will add 6,500 MVA and take our total installed capacity to 14,000 MVA, remains on track for commissioning in April '27.”
Alay Shah, page 4 of the filed PDF · View the filing
Existing capacity utilization — almost full utilization · FY27
stated as an aspiration by Alay Shah
p. 4
“For financial year '27, we expect to run our existing 7,500 MVA capacity at almost full utilization and the new facility will drive the next leg of growth from financial year '27-'28 onwards.”
Alay Shah, page 4 of the filed PDF · View the filing
Turnover post full utilization of new facility — around INR1,500 crores
stated as an aspiration by Alay Shah
p. 8
“Yes. So, I mean, you know, yes, so once this, you know, expansion takes place and once we start fully utilizing this new facility, we can do an turnover of around INR1,500 crores.”
Alay Shah, page 8 of the filed PDF · View the filing
Full impact of new facility — FY29 to FY30
stated as an aspiration by Alay Shah
p. 14
“I would say, Yes, FY29 to FY30; yes, you can say that.”
Alay Shah, page 14 of the filed PDF · View the filing
MVA volume — Around 7,000 MVA · FY27
stated as an aspiration by Alay Shah
p. 15
“Around 7,000 MVA.”
Alay Shah, page 15 of the filed PDF · View the filing
Capacity utilization — up to 90%, 95% · coming year
stated as an aspiration by Alay Shah
p. 15
“And ideally, in any facility, up to 90%, 95% is considered to be a good utilization. And we plan to do that for this coming year.”
Alay Shah, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Lower export mix due to Middle East shipment delays plus a sharp rise in oil prices increased raw material consumption cost.
Answered by Alay Shah
Asked by Ayush D: Which part of the raw material basket drove gross margin compression?
p. 4
“Yes, so in Q4 basically our export is considerably less. Main reason for that is that we could not ship out the transformers in March due to this Middle East crisis and that has reduced our export compared to the domestic and that has changed the ratio of our raw material consumption.”
Alay Shah, page 4 of the filed PDF · View the filing
Management has approached all customers for price increases; some have agreed, others are still in discussion.
Answered by Alay Shah
Asked by Ayush D: Are price hikes being negotiated with customers?
p. 4
“Yes. So we have approached almost all customers for the price increase, revision in price and the active dialogues are going on.”
Alay Shah, page 4 of the filed PDF · View the filing
Shipping has resumed and the company has a strong order book, giving confidence for Q1.
Answered by Alay Shah
Asked by Shrenik Mehta: How will Q1 FY27 sales look given the deferred Middle East shipments?
p. 5
“So like I said in my opening remarks, the shipping has already resumed and we have already started shipping out transformers which we were not able to ship in the month of March and slowly, slowly that situation is becoming normal.”
Alay Shah, page 5 of the filed PDF · View the filing
Yes, margins would have been similar to Q1-Q3 without these two factors.
Answered by Alay Shah
Asked by Akash: Would margins have matched prior quarters absent the Middle East disruption and commodity inflation?
p. 6
“So, in, you know, the month of March, export as well as, you know, for the price increase of, you know, all the commodities, that has, you know, impacted the EBITDA margin. And yes, if this situation would not have been there, we would have done similar margin as what we did in Q1, Q2 and Q3.”
Alay Shah, page 6 of the filed PDF · View the filing
Export was around Rs 52 crore and domestic around Rs 100 crore, with Rs 35-40 crore of export undispatched in March.
Answered by Alay Shah
Asked by Het Shah: What was the export-domestic mix in Q4 and how much export was delayed?
p. 7
“Yes, so in Q4, our total export was around INR52 crores and the domestic is around INR100 crores. And export we could not ship in the tune of almost like INR35 crores to INR40 crores in the month of March.”
Alay Shah, page 7 of the filed PDF · View the filing
Oil prices have nearly doubled since February and other commodities have risen 10-25%.
Answered by Alay Shah
Asked by Nikunj Bhanushali: What is the current transformer oil pricing scenario?
p. 8
“So oil prices have become almost double than what we used to buy in month of February. So February till today, it has increased to almost 100%. And all other commodity has increased in range of 10% to 25%.”
Alay Shah, page 8 of the filed PDF · View the filing
Management said Rs800 crore is a conservative figure and the target could still reach Rs900 crore, noting a track record of exceeding stated guidance.
Answered by Alay Shah
Asked by Garvit Goyal: Why has FY27 guidance moved from Rs850-900 crore to Rs800 crore?
p. 9
“We are looking for that target. I mean, it will be INR800 crores to INR850 crores. Just conservatively, I am saying INR800.”
Alay Shah, page 9 of the filed PDF · View the filing
For existing orders, customers will be asked to absorb price increases; new inquiries will be quoted at higher prices reflecting current raw material costs.
Answered by Alay Shah
Asked by Abhijeet Singh: Can the company pass on the commodity cost increase to customers on existing and future orders?
p. 10
“So, I mean, frankly speaking, whatever orders we have on hand, it will be, I mean, we will have to convince our customer to absorb the price increase.”
Alay Shah, page 10 of the filed PDF · View the filing
Utilization figures were based on dispatches, not production; production was higher but finished goods were held as closing stock due to the shipping crisis.
Answered by Sayam Pokharna
Asked by Prateek Shrivastava: Why did capacity utilization rise only two percentage points despite strong demand, and is the reported utilization based on dispatches or production?
p. 13
“Just one clarification. The capacity utilization that has been given on the presentation is on the basis of dispatches. We have obviously produced more and we are carrying that as closing stock as of 31st March which will be dispatched in the coming year.”
Sayam Pokharna, page 13 of the filed PDF · View the filing
Copper/aluminium is normally booked immediately upon order receipt, but the current price spike is being treated as a force majeure situation requiring price rise discussions with customers; some orders carry price variation clauses.
Answered by Alay Shah
Asked by Resham Jain: What is the company's raw material hedging policy given the order book and price volatility?
p. 16
“So, you know, in the previous meet also we have said this that whenever we get an order, we immediately book either copper or aluminum, and we don't take any risk on that.”
Alay Shah, page 16 of the filed PDF · View the filing
US contributed 18-19% of revenue; tariffs disrupted orders mid-year but have since reduced, and management expects good growth in US exports.
Answered by Alay Shah
Asked by Bhavya: How much revenue came from the US and how is the US opportunity evolving?
p. 16
“So we have done around 18% to 19%. I mean, 18% to 19% of our revenue has come from the US exports.”
Alay Shah, page 16 of the filed PDF · View the filing
Risks flagged
US tariff policy uncertainty moderated order intake from US customers
p. 3
“First, the uncertainty around US tariff policy in the preceding quarters moderated order intake from US customers, specifically in Q3.”
Alay Shah, page 3 of the filed PDF · View the filing
Middle East crisis and logistics disruptions delayed shipments
p. 3
“Second, a significant volume of shipments scheduled for delivery to Middle East customers in March '26 could not be dispatched due to the crisis in West Asia and the resulting logistics disruptions.”
Alay Shah, page 3 of the filed PDF · View the filing
Sharp rise in raw material and oil prices squeezing margins
p. 12
“So, I mean, I can tell you that right now the, per commodity prices have gone up by 10% to 25% depending on the, you know, raw material. And oil is specifically gone up by 100%.”
Alay Shah, page 12 of the filed PDF · View the filing
Uncertainty in predicting future commodity price trends
p. 12
“What will happen in coming months, we have no idea. If suppose that situation improves and if there, the crisis gets over in Middle East, prices may come down to the original level.”
Alay Shah, page 12 of the filed PDF · View the filing
Suppliers unable to source raw material at previously booked prices, creating a force majeure situation
p. 16
“But in this specific situation, the prices have gone up suddenly and very drastically where all our suppliers where -- whatever orders we had placed, they are also not able to get the raw material at lower prices.”
Alay Shah, page 16 of the filed PDF · View the filing
Long lead times for bushings used in higher voltage transformers
p. 14
“Yes, it is not a shortage. I think the lead time is quite long and if we maintain some inventory, then I think we should be okay.”
Alay Shah, page 14 of the filed PDF · View the filing
Industry-wide capacity expansion by competitors
p. 12
“So like I said, it's not, I mean, everyone is expanding right now.”
Alay Shah, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.