Vilas Transcore Ltd Q3 FY26 Earnings Analysis

- Targeted volume growth of 30-40% in the next half of the year, translating to 35-40% revenue growth. - Aim to reach approximately INR 600 crores in revenue, with a focus on maintaining 10-11% margins. - Ramp-up of copper conductor business expected to start from May 2026, targeting peak revenue of INR 150-200 crores by FY27 last quarter. - Nanocrystalline and amorphous core segments expected to gradually ramp up, with nanocrystalline projected to generate around INR 50 crores revenue potential. - No compromise on bottom-line margins despite growth targets; growth to be steady and margin-conscious. - Expect improved margins in H2 FY26 with diversification into nanocrystalline and radiator products. - Growth expected to be steady, sustainable, and aligned with market demand and technical capabilities.

- The company targets volume growth of 30-40% going into the next half of the year, translating to 35-40% revenue growth. - EBITDA margin was strong at 13.6% in H1 FY26, with confidence to maintain margins despite CRGO price volatility. - Nanocrystalline and radiator products are expected to contribute positively to margins and earnings in H2 and beyond. - Copper conductor business is anticipated to start contributing revenue from May 2026, targeting INR 150-200 crores at peak with margins around 3-7%. - The bottom-line is expected to improve in H2 FY26 compared to H1, partly due to new product lines. - The company does not plan to compromise on margins despite market fluctuations. - EBIT and PAT margins for H1 FY26 were 13.6% and 10.7%, respectively, setting a positive base for growth. - Gradual growth approach emphasized; rapid volume jump without compromising profitability is avoided.

- Vilas Transcore has invested around INR 80 crores in the recently commissioned plant (July 2025), with INR 12-15 crores pending for final contractor payments. - They plan to install a solar plant by January 2026, subject to government permissions; CAPEX for it is estimated around INR 2.5 crores if outsourced, but they plan to do it in-house for learning. - For the copper conductor segment, initial CAPEX is around INR 25-30 crores, targeting INR 150-200 crores revenue; payback period estimated at 4-5 years with 4% margin. - No firm plans disclosed yet for Phase-II copper product expansion; currently focusing on Phase-I and conducting market research and R&D before committing to further investment. - Term loan of INR 15-20 crores planned to fund copper machinery, representing likely maximum debt.

- The company is currently debt-free. - Planning to take term loans of INR 15 to 20 crores specifically for the copper plant machinery. - No other debt plans are currently envisaged. - No mention of any ongoing or future equity fundraising during the call. - Phase-II expansion plans for copper products are under study; funding details will be shared once 100% confirmed. - Overall, minimal debt expected, focused mainly on the copper business CAPEX.

- The company has a very good order book and is receiving lots of enquiries. - No slowdown is reported from the transformer manufacturers' side; demand remains strong. - Orders were somewhat impacted during the rainy season due to restricted movement and inventory blockages but ramp up is expected post-rainy season. - Current demand for CRGO and related products is stable with no supply constraints. - Customer base includes major players such as Voltamp Transformers, Electrotherm, and Shilchar Transformers. - Export constitutes only 1.5%-2% of turnover, mainly focusing on domestic markets currently. - Pipeline for copper conductor business is awaiting ramp-up; revenue generation expected starting May 2026. - Anticipated order inflows expected to sustain volume growth of 30-40% in the upcoming half-year.