Result was just an eye wash i think. FY25 will be huge for waaree tech as 2gw plant is completed in may itself as per my scuttlebutt. (officially they haven’t announced yet).
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Is is still significant part of your portfolio despite the poor results constinuously. Management isn’t clearing anything on their future plans but working behind the scenes. Any comments or updates you would like to share?
Hi Ankit, I reduced my investment and had managed to book some profit intially at high level, but this was a stock that came with its lessons. I was expecting the government to announce solar battery-related PLI, but not much materialized. Additionally, Waaree Tech’s management didn’t share their plans at all.
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Given the government’s focus on promoting EMS companies and their extensive global customer base, the EMS sector is expected to perform well. Dixon, Kaynes, and Syrma SGS are promising investment options, with SGS having the most attractive valuation among them. According to promoters’ estimates, FY24-25 growth is projected at 40-45%, with around 35% growth expected in subsequent years. However, as these figures come from the promoters, exercise caution. I currently hold investments in Dixon and Kaynes and plan to add Syrma SGS soon.
DISCLAIMER: This is not financial advice. I am not a SEBI-registered investment advisor. Please do your own research before making investment decisions.
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Shilchar Technologies Ltd Q2 FY26 Results Highlights
- Revenue: ₹171 crore — up 31% YoY.
- EBITDA Margin: 31%, same as Q2 FY25.
- Net Profit: ₹46 crore — up 40% YoY.
- H1 FY26 Growth:
- Revenue up 39%.
- Profit up 54% sequentially.
- Capacity Utilisation: 90–95%.
- Order Book: ₹300 crore (₹175 cr domestic + ₹125 cr exports).
- Export Share: 50% of sales (U.S. 12–15%, rest in Middle East, Africa, Europe, Far East).
Guidance & Outlook
- FY26 revenue target: ₹750 crore (management confident of achieving it).
- FY27 target: ₹800–₹850 crore (10–20% YoY growth).
- Margins: Expected to remain stable at current levels.
- FY27 growth: Driven by better utilisation in H1, despite being near full capacity.
Expansion & Capex
- Gavasad Expansion (Phase 3) – ₹90 crore capex funded by internal accruals.
- Adds 6,500 MVA to reach 14,000 MVA by April 2027.
- Enables production of 220 kV / 100 MVA transformers, expanding into higher-voltage segment.
- Full capacity revenue potential: ₹1,400–₹1,500 crore annually.
- Initial utilisation (FY28): 60–70%.
Business & Market Summary
- Strong domestic renewable energy demand (solar/wind), with 21.7 GW solar capacity added in H1 FY26.
- U.S. market: Despite a 50% import tariff, customers continue to buy from Shilchar due to quality and limited global supply.
- Export markets beyond the U.S. — Middle East, Africa, and Europe — remain strong.
- Focus: Remain a specialist in transformers (no diversification or acquisitions planned).
- NSE listing: Expected before New Year 2026.