Shivalik Bimetal

Shivalik Bimetal Controls Limited reported a robust FY26, with consolidated revenue growing 12.3% to ₹570.9 crore. This growth was accompanied by a significant 26.0% increase in EBITDA to ₹130.7 crore, leading to an EBITDA margin expansion of approximately 250 basis points, reaching 22.9%. Net profit after tax (PAT) also saw a healthy rise of 24.8% to ₹95.8 crore, reflecting improved realizations and continued cost discipline.

The company is deliberately evolving into a precision engineering platform focused on higher-value components and assemblies. This strategy is evident in the shunts business, where the contribution from components increased from 55% to 65%, resulting in a 10-12% improved realization per kg. This shift aims to strengthen engagement with OEM and Tier-1 customers and increase participation in applications requiring reliability and technical consistency.

Smart metering applications were a significant growth driver in FY26, with revenue doubling from ₹30-40 crore to over ₹75-80 crore. Management expects similar growth in FY27 and anticipates decent growth for the next 6-8 quarters. The electric contacts division also experienced tremendous growth, partly due to rising silver prices but primarily driven by actual business growth and the conversion to more value-added components.

The new Pune facility is strategically important for expanding capabilities in PCBA and busbar assemblies, particularly for automotive and electrification-led applications. Management projects this standalone unit could generate revenues in the range of ₹250-350 crore within a 2-3 year period. The company leverages its expertise in EB welding for these solutions, which offer superior safety and material savings, making them attractive to customers.

While India remains the largest market, Europe has emerged as a strong growth engine, and Asia delivered broad-based momentum. The Americas market, which was soft in FY26, is showing early signs of normalization. The US shunts business is transitioning from strip form to finished resistor components, bypassing tariffs, and is expected to surpass its previous peak revenue levels by FY27-28, albeit with a lower concentration of 17-18% of total revenue.

Shivalik aims for sustainable growth, targeting 20-30% in the short term and 30%+ over the next five years, spread across diverse industries and customers. The company does not anticipate significant growth capex, with maintenance and automation capex projected at ₹10-15 crore year-on-year. Existing capacity is deemed sufficient to support growth, with an expected capacity utilization of 75-80% in FY27 without incremental capex.