Shivalik BimetalQ1 FY27
Shivalik Bimetal Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹1,015P/E: 53.7Market Cap: ₹5.7K CrSector: Industrial Products
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2- →For FY27, Shivalik expects overall revenue growth in the range of 20% to 30%, driven by a mix of segments.
- →Shunts are a key growth driver, with strong development in two-wheeler EVs and smart meters as high-demand end markets.
- →Bimetal segment shows signs of volume growth after several quarters of stagnation, fueled by real estate and infrastructure.
- →Cell connecting systems and bus bar assemblies are nascent but projected to scale significantly, targeting ₹300-400 crores revenue in 3 years with about 10-15% in year one.
- →Value-added products contribute about 70-75% to shunt growth, underpinning margin quality.
- →New project developments and technology partnerships are expected to create additional growth opportunities.
- →Order books with key customers, especially in the US and automotive sectors, show encouraging volume growth prospects over 1-2 years.
Margin guidance
Category 3- →Shivalik is confident of moving in the right direction with stronger value capture and improving earnings quality (Page 15).
- →For FY27, the company expects overall revenue growth in the range of 20% to 30%, supported by higher value-added business segments (Page 4).
- →EBITDA growth aligned with revenue increase and better quality of growth expected as the operating model strengthens with scaling (Page 2).
- →Margin improvement achieved despite increased employee costs due to investments in capacity and capabilities (Page 2).
- →Emerging and growing business segments like shunts (18.7% revenue growth) and thermostatic bimetals (7.4% growth) contribute to this outlook (Page 2).
- →Expansion into higher value components and assemblies expected to enhance profitability and cash conversion (Page 15).
- →Capacity utilization for key processes indicates room to scale operations quickly, supporting near-term growth (Page 15).
3 more insights locked — sign up free to unlock
Fundraise plans
- →There is no explicit mention of any current or planned fundraising through debt or equity in the provided content.
- →The company is focusing on deploying internally generated cash toward good business opportunities aligned with its growth ethos.
- →Management is exploring inorganic growth options such as technology partnerships, greenfield projects, or potential smaller acquisitions for new product verticals.
- →Priority remains on selective capital allocation while maintaining margin quality, working capital efficiency, and cash conversion.
- →No direct references to new debt or equity issuance were made during the discussion.
Order book
Yes- →Shivalik's cell connecting system business started with one major two-wheeler OEM that has scaled significantly into EVs.
- →They are working on 2-3 additional designs with other OEMs, expected to convert into business by end of the year.
- →The Pune facility’s first phase capacity can currently cater to only one model; full capacity operational from October.
- →The company expects the Pune facility to generate business worth INR 300-400 crores in about 3 years.
- →Revenue from this is anticipated at 10-15% of the total in Year 1, INR 150-200 crores in Year 2, and INR 300+ crores thereafter.
- →Strong growth expected in shunts due to rising demand from Chinese OEMs and developments in EV two-wheelers.
- →Some new volume opportunities in thermostatic bimetal for export markets are under testing, likely contributing revenue a year from now.
- →Expected overall revenue growth in FY27 is around 20-30%, depending on customer demand and execution.
Capex plans
Yes- →Pune facility Capex for bus bar and cell system project estimated at ₹20-25 crores in the current phase.
- →Majority of high-CAPEX processes already established at existing Solon plant, so incremental Pune investment is relatively low.
- →Future phases for making more assemblies or integrated finished assemblies may require additional capital.
- →Exploring 2-3 new growth opportunities involving greenfield projects or technology partnerships, including:
- → - Specialized metallurgical materials for electronics with potential tech partners under NDA.
- → - Automotive fuses segment with prospects for partnerships or acquisitions.
- →Shivalik maintains a dedicated team focused on innovation and new verticals to drive scalable growth beyond core business.
- →Short-term capacity expansions in shunts production possible within 2-3 months due to spare ready-to-build capacity.
- →Thermostatic bimetal capacity expansion is CAPEX intensive and longer-term, currently utilized at ~40-45%.
How does Shivalik Bimetal rank vs peers in Industrial Products?
Pro feature1Shivalik Bimetal
Rev 2Mar 3
See full Industrial Products sector rankings
How does Shivalik Bimetal rank in Industrial Products?
Compare Shivalik Bimetal against every Industrial Products company (Q1 FY27) on revenue, margins and earnings-call signals.