Vilas Transcore — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Vilas Transcore reported strong H1 FY26 results with revenue up 41% to INR 229 crores and PAT up 74% to INR 24 crores, driven by new capacity additions. The company commenced commercial production at its new plant for CRGO laminations and nanocrystalline cores, and trial production for radiators is underway. Despite CRGO price volatility and increased competition from Chinese imports, management expects to maintain margins and achieve 35-40% revenue growth in H2 FY26. The company remains net-debt-free and is expanding into copper products with an estimated CAPEX of INR 25-30 crores.

Highlights

  • Revenue from operations stood INR 229 crores, reflecting a 41% year-over-year increase.

  • EBITDA excluding other income was INR 31 crores, up 74% year-on-year with an EBITDA margin of 13.6%.

  • Profit after tax stood INR 24 crores, up 74% year-on-year with a PAT margin of 10.7%.

  • First phase of commercial production for CRGO Laminations and Nanocrystalline Cores began on July 25, 2025.

  • Company remains net-debt-free, maintaining a healthy and conservative balance sheet structure.

Concerns

  • CRGO prices have declined by nearly 15-20% from their previous highs, reflecting increased supply and market adjustments.

  • Intensifying price competition among domestic players due to the entry of a BIS of Chinese mill into the Indian market.

  • Radiator production was slightly delayed due to power connection issues.

Key financials

  1. Revenue from Operations ₹229 Cr +41%YoY
  2. EBITDA (excl. other income) ₹31 Cr +74%YoY
  3. EBITDA Margin 13.6%
  4. Profit After Tax ₹24 Cr +74%YoY
  5. PAT Margin 10.7%

What they filed

Q4 FY26: revenue up 54.7%, net profit up 25.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue159 150 162 191 229 +44%232 +55%
EBITDA15 15 18 27 31 +107%20 +33%
Net profit11 12 14 21 24 +118%15 +25%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

low confidence
Management indicated consistent order inflows from utilities and EPC players and a very good order book, but did not quantify the total value.

Source: Inferred

Capital allocation

high confidence
  • Capex Capex disclosed combination of internal accruals and term loans (for copper products)
    • Major expansions to set up a new plant (invested so far) ₹80 Cr
    • Copper products (PICC and CTC Copper Conductors) Phase-I ₹25 Cr
    • Solar plant installation ₹2.5 Cr
    We carried out an IPO in May 2024 to raise funds for major expansions to set up a new plant to add 24,000 MT per annum to our capacity. The estimated capital expenditure of INR 25 to 30 crores will be financed through a combination of internal accruals and term loans. At present, almost INR 80 crores has been invested, INR 15 crores is yet to be invested. If I will give to some contracting agency, CAPEX will be somewhere around INR 2.5 crores, but we are planning to do it by ourselves to learn how to implement the solar plant.
  • Debt Net ₹0 Cr
    Additionally, we remain net-debt-free, maintaining a healthy and conservative balance sheet structure.

Guidance & targets

Volume

  • Volume growth Volume · next half of the year (H2 FY26) · High confidence 30-40%
    With robust demand, we remain confident for achieving our targeted volume growth of 30-40% going into the next half of the year, which will be translated to 35-40% growth in revenue.

    — Nilesh J. Patel

Revenue

  • Revenue growth Revenue · next half of the year (H2 FY26) · High confidence 35-40%
    With robust demand, we remain confident for achieving our targeted volume growth of 30-40% going into the next half of the year, which will be translated to 35-40% growth in revenue.

    — Nilesh J. Patel

  • FY26 Revenue Target (Revised) Revenue · FY26 · Medium confidence INR 600 crores (10-15% minus side)

    Previously INR 600 crores → INR 600 crores (10-15% minus side)

    So, my point is that because now the price has gone down, that INR 600 crores 10% to 15%, not plus, it might be on minus side, but definitely we will not compromise with the bottom-line.

    — Nilesh J. Patel

Margin

  • Margins Margin · H2 FY26 · High confidence fairly maintained
    Despite the falling CRGO price and with our specialized skills in inventory management and marketing strategies, we remain confident of fairly maintaining our margins as well.

    — Nilesh J. Patel

Capacity

  • Copper products (PICC and CTC) installed capacity (Phase-I) Capacity · Phase-I · High confidence 1,500 to 1,800 MTPA
    New facilities will be located within the Unit-III premises, and we will have an installed capacity of 1,500 to 1,800 MTPA in Phase-I.

    — Nilesh J. Patel

  • Amorphous core capacity Capacity · current plant · Medium confidence around 500 metric tons per annum
    It must be the line what we have right now can make around 500 metric tons per annum. That is what is the amorphous core.

    — Nilesh J. Patel

Capex

  • Copper products (PICC and CTC) capital expenditure Capex · Phase-I · High confidence INR 25 to 30 crores
    The estimated capital expenditure of INR 25 to 30 crores will be financed through a combination of internal accruals and term loans.

    — Nilesh J. Patel

  • Solar plant installation Capex · January month · High confidence installed
    Yes, once this January month will come, we will install the solar plant.

    — Nilesh J. Patel

Commercial Production

  • Copper products commercial production start Commercial Production · May 2026 · High confidence May 2026
    Installations are expected to be completed by end of March 2026, and after trial runs, the commercial production is expected by May 2026.

    — Nilesh J. Patel

  • Radiator revenue start Commercial Production · FY26 Q3 · High confidence December
    That revenue will be reflected from the December, January, February and March. So, it will start slowly from the December.

    — Nilesh J. Patel

Revenue Potential

  • Copper products peak revenue Revenue Potential · peak capacity · Medium confidence INR 150 and INR 200 crores
    Sir, that all depends on the prices of the Copper but at present value, it will be anywhere between INR 150 and INR 200 crores

    — Nilesh J. Patel

  • Nanocrystalline revenue potential Revenue Potential · current plant · Medium confidence around INR 50 crores
    Nanocrystalline, as I said, it has lots of geometries. So, it is not in quantity, but the plant what we have put can fetch the revenue of around INR 50 crores.

    — Nilesh J. Patel

Capacity Utilization

  • New plant full capacity utilization Capacity Utilization · next financial year (FY27) · High confidence full capacity
    So, mainly next financial year, we will be able to utilize full capacity of this entire plant.

    — Nilesh J. Patel

What to watch in Q3 FY26

Copper products commercial production

May 2026
Current Installations expected by March 2026, trial runs underway
Target Commercial production starts

Why it matters

Commencement of commercial production for new copper products is key to diversifying revenue and achieving growth targets.

Installations are expected to be completed by end of March 2026, and after trial runs, the commercial production is expected by May 2026.

Risks & concerns

  • CRGO price volatility

    medium

    Noticeable volatility in CRGO prices driven by global steel market and Indian political scenario.

    Management acknowledged

  • Increased competition from Chinese imports

    medium

    Entry of a BIS of Chinese mill into the Indian market has intensified price competition among domestic players, putting pressure on margins.

    Management acknowledged

  • Potential further decline in CRGO prices

    medium

    Management believes CRGO prices have not bottomed out and could see a further 5-10% decline.

    Management acknowledged

  • Delay in radiator production

    low

    The start of radiator production was slightly delayed due to power connection issues, now resolved with trial production underway.

    Management acknowledged

Q&A highlights

7 direct
CRGO price outlook Direct
So, at present, it seems to be stable. In future, I am not aware, but at present, it seems that it is not bottomed down, but maybe 5% or 10% more decline can come and that will be the bottom-line.

Management expects further 5-10% decline in CRGO prices, indicating continued raw material cost volatility and potential impact on margins.

Asked by Garvit Goyal

H2 FY26 bottom-line vs H1 FY26 Direct
Most probably, it will be because now our two more products, Nanocrystalline and Radiator also will be coming in picture. So, we expect that has to be better.

Management is confident H2 bottom-line will be better due to anticipated contributions from new products (Nanocrystalline and Radiator).

Asked by Garvit Goyal

Copper products margin profile Direct
So, CTC conductor has a margin of say around 5% to 6% and the PICC conductor is having around 3% to 4%, and the copper is a very high price item.

Provides specific, lower margin expectations for the new copper product segment, which will be offset by high turnover and asset turns.

Asked by Naman Parmar

PGCIL approval for new products Direct
That process is going on. Might be in March, we will be able to get that.

Indicates a key regulatory milestone for new products, expected by March 2026, which is crucial for market entry and scaling.

Asked by Naman Parmar

Export strategy Direct
So, export is around our turnovers around 1.5% to 2% only. At present in export, there is lots of competitions is going on. China is ruling all over export market. And we do not see any benefit doing in export compared to Indian market.

Clarifies the company's limited export focus due to intense competition, particularly from China, and preference for the Indian domestic market.

Asked by Naman Parmar

Competitive landscape for CTC conductors Direct
So, this particular product, what we are making is made by APAR Conductors, then ASTA, then Rational Engineers. These are the three major players... And this is right now under the short supply.

Identifies key competitors and highlights the current supply shortage, indicating a favorable market entry for Vilas Transcore's new copper products.

Asked by Hardik Gandhi

Previous FY26 revenue target of INR 600 crores Direct
So, my point is that because now the price has gone down, that INR 600 crores 10% to 15%, not plus, it might be on minus side, but definitely we will not compromise with the bottom-line.

Management revises the FY26 revenue target downwards by 10-15% from the previous INR 600 crores due to CRGO price decline, but emphasizes margin protection.

Asked by Miten Shah

2 min read 5 chapters

Detailed narrative

Strong H1 FY26 Financial Performance

Vilas Transcore reported robust financial results for H1 FY26, with revenue from operations growing 41% year-over-year to INR 229 crores. EBITDA increased by 74% year-on-year to INR 31 crores, achieving a margin of 13.6%. Profit after tax also saw a 74% year-on-year rise to INR 24 crores, with a PAT margin of 10.7%. The company maintained a net-debt-free status, reflecting a healthy balance sheet.

Capacity Expansion and New Plant Commissioning

The company successfully commenced the first phase of commercial production at its new plant for CRGO Laminations and Nanocrystalline Cores on July 25, 2025. This expansion adds 24,000 MT per annum to the existing 12,000 MT capacity, bringing the total CRGO lamination capacity to 36,000 MTPA. Additionally, trial production for radiators, with a capacity of 7,200 MT per annum, is underway after resolving initial power connection delays.

Strategic Entry into Copper Products Segment

Vilas Transcore is diversifying its product portfolio by venturing into the manufacturing of PICC and CTC Copper Conductors, aiming to become a one-stop shop for transformer components. This Phase-I expansion, located at Unit-III, will have an installed capacity of 1,500 to 1,800 MTPA and is expected to require a capital expenditure of INR 25-30 crores, funded by internal accruals and term loans. Commercial production for copper products is anticipated to begin by May 2026, with a peak revenue potential of INR 150-200 crores.

CRGO Market Dynamics and Margin Management

The CRGO market is experiencing noticeable volatility, with prices declining by 15-20% from previous highs, partly due to increased supply from Chinese mills entering the Indian market. This has intensified price competition and put pressure on margins. However, management is confident in maintaining margins in H2 FY26 through specialized inventory management and marketing strategies, despite expecting a further 5-10% decline in CRGO prices.

Outlook and Growth Strategy

For H2 FY26, the company targets a volume growth of 30-40%, translating to a 35-40% revenue growth. While the previous FY26 revenue target of INR 600 crores is now expected to be 10-15% lower due to CRGO price declines, management is committed to protecting the bottom-line. New product segments like Nanocrystalline cores (with INR 50 crores revenue potential) and Radiators are expected to contribute significantly to H2 performance, with full capacity utilization of the new plant targeted for FY27. The company also plans to install a solar plant in January to enhance cost efficiency.

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