Shilchar Technologies Ltd is aiming for revenue visibility of over ₹800 crore in FY27, backed by strong domestic and export demand, while continuing to maintain a debt-free balance sheet and pushing ahead with a major capacity expansion project that is expected to drive the company’s next phase of growth.
The transformer manufacturer ended FY26 with cash and cash equivalents of ₹246 crore and zero debt, giving it the financial flexibility to fund ongoing expansion entirely through internal accruals.
Capacity expansion on track
Shilchar Technologies Ltd, Chairman and Managing Director, Alay J Shah said the company’s Gavasad Expansion-3 project remains on schedule for commissioning in April 2027.
The expansion will add 6,500 MVA capacity, taking Shilchar’s total installed transformer manufacturing capacity to 14,000 MVA from the current 7,500 MVA.
Speaking at the earnings call, he said civil foundation work at the site has already been completed, while pre-engineered building erection and utility infrastructure work are currently underway. Major production equipment orders have also been placed.
The upcoming facility, being developed with a capital expenditure of around ₹120 crore, will manufacture transformers up to 160 MVA and 220 kV class.
Debt-free status strengthens growth plans
Shah highlighted that the company continues to remain debt free even as it undertakes aggressive expansion plans.
The company reported operating cash flow of ₹192 crore during FY26, which is supporting ongoing capex requirements without external borrowing.
Management indicated that the existing 7,500 MVA capacity is expected to operate at near full utilisation during FY27, while the new facility will begin contributing meaningfully from FY28 onwards.
Strong order visibility despite temporary disruptions
The company said business visibility remains strong, with expected order inflows of around Rs 800 crore for FY27 supported by robust enquiries from both Indian and overseas customers.
For FY26, Shilchar Technologies reported revenue from operations of ₹ 652 crore, reflecting around 5% year-on-year growth. EBITDA stood at ₹190 crore, with EBITDA margins remaining strong at 29%.
The March quarter, however, witnessed temporary disruptions in dispatches due to geopolitical and policy-related developments.
Shah said uncertainty surrounding US tariff policies during preceding quarters impacted order intake from American customers, particularly in Q3. While order inflows recovered during Q4, dispatches remained slower because of earlier moderation in bookings and interim policy uncertainty.
He added that order intake and deliveries from US customers have picked up significantly in Q1 FY27 following amendments in tariff policy and continued demand strength.
The company also faced shipment disruptions during March because of the West Asia crisis and logistics bottlenecks. Export shipments worth around ₹35-40 crore could not be dispatched during the month and were deferred rather than cancelled.
According to the management, dispatches to the region resumed in April and the overall situation has improved considerably.
Long-term growth roadmap intact
Shilchar Technologies is also preparing for further capacity additions beyond the ongoing expansion phase.
Shah said once the new Gavasad facility reaches optimal utilisation, the company will have the capability to generate turnover of around ₹1,500 crore.
He added that the company does not intend to wait for full utilisation before planning the next round of expansion and further announcements could follow in the future.
With global transformer demand remaining favourable and domestic investments in transmission, distribution and renewable energy infrastructure accelerating, Shilchar appears positioned to capitalise on the ongoing power infrastructure upcycle.