Shilchar Technologies LimitedCapital Goods & EngineeringSHILCTECH
Q1 FY27 earnings callShilchar Technologies Limited
Q1 revenue and margins were impacted by delayed export dispatches and slower pass-through of raw material costs due to the West Asia crisis, but management maintains annual guidance and expects improved momentum in Q2.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations | Rs. 134.60 crores | — | |
| EBITDA | Rs. 29.23 crores | — | |
| Profit After Tax | Rs. 20.86 crores | — | |
| Order Book | Rs. 500 crores | — | |
| Production Capacity Utilization - Q1 | 60-65% | — |
TL;DR
- Revenue of Rs 134.60 crores and PAT of Rs 20.86 crores were below potential due to geopolitical issues.
- Export dispatches slowed as shipping costs rose 3-5x, raising landed costs for customers and deferring orders.
- Raw material price pass-through on existing domestic orders was slower than anticipated, affecting margins.
- Management maintains FY27 revenue guidance of Rs 800 crores and expects capacity utilization to be near 100% for the year.
- The order book stands at Rs 500 crores, with a 70% domestic and 30% export split, and is fully booked for Q2.
- Phase-3 expansion adding 6,500 MVA capacity remains on track for April 2027 commissioning.
Said on the call
“The quarter was shaped largely by the continuing effects of the crisis in West Asia, which affected our Middle East exports directly and through a sudden increase of price for certain raw materials.”
From the Q&A
| Topic | What management said |
|---|---|
| Revenue Impact and Guidance | Management quantified that without the West Asia crisis, Q1 revenue could have been higher by Rs 30-35 crores but reaffirmed the annual revenue guidance of Rs 800 crores. |
| Margins and Price Pass-Through | For orders executed in Q4 and Q1, only about 50-60% of raw material price rises were passed on to customers, but current orders are at market prices, and management expects EBITDA margins to improve in Q2. |
| Order Book and Geographic Mix | The Rs 500 crore order book is split 70% domestic and 30% export, with execution planned for Q2, Q3, and some for Q4; the mix may change if the geopolitical situation improves. |
| Capacity and Expansion | Q1 capacity utilization was 60-65%, with a target of near 100% for FY27; the Phase-3 expansion for 6,500 MVA capacity is on track for April 2027 commissioning, and an additional land parcel has been acquired for future expansion. |
| Export Challenges | Elevated shipping costs (3-5x increases for some routes) have deferred export orders, but underlying demand is firm; orders are delayed, not cancelled, as products are custom-made. |
Guidance
- FY27 revenue guidance of Rs 800 crores is maintained.
- Existing 7,500 MVA capacity is expected to operate at almost full utilization for FY27.
- Business momentum is expected to be notably better in Q2 compared to Q1.
- Phase-3 expansion (6,500 MVA) remains on track for commissioning in April 2027.
Source
Summary written from the transcript filed by Shilchar Technologies Limited for the call held on 14 Aug 2026; published 19 Aug 2026, 16:37 IST.