The shares of the leading transformer company gained up to 10 percent in today’s trading session after clocking the record date to issue bonus shares to eligible shareholders.
With a market capitalization of Rs 6,904.22 crore, the shares of Shilchar Technologies Ltd were trading at Rs 6,035.05 per share, increasing around 9.59 percent as compared to the previous closing of Rs 5,527.95 apiece.
According to the April filing, the board approved the issue of bonus equity shares in the ratio of 2:1 i.e., 1 new fully paid-up equity share of Rs 10 each for every 2 existing fully paid-up equity share of Rs 10 each held, to the eligible equity shareholders of the company as on the record date.
Moreover, the Board had set Friday, 6th June 2025, as the record date to determine eligible shareholders for bonus shares, following which the shares declined by 30 percent from their previous close today as a result of bonus issue price adjustments. As per SEBI guidelines, the deemed allotment date is Monday, 9th June 2025, and the bonus shares will be available for trading from Tuesday, 10th June 2025.
Additionally, the company’s shares have surged around 30 percent since the bonus issue announcement. Over the past two months, the stock has delivered an impressive return of 84.59 percent, reflecting strong investor confidence and positive market sentiment following the corporate action.
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Recently, Shilchar Technologies Ltd reported positive results in Q4FY25, revenue increased by 50 percent on a quarter-on-quarter basis from Rs. 154 crore in Q3FY25 to Rs. 232 crore in Q4FY25. Further, the revenue was magnified by 121 percent year on year, from Rs 105 crore in Q4FY24 to Rs 232 crore in Q4FY25.
The company’s net profit increased by 57 percent on a quarter-on-quarter basis, from Rs. 35 crore in Q3FY25 to Rs. 55 crore in Q4FY25. Further, net profit magnified significantly by 120 percent year on year from Rs 25 crore in Q4FY24 to Rs 55 crore in Q4FY25.
Shilchar Technologies, a power and distribution transformer brand for over four decades, specializes in custom-made solutions for renewables and industrial use. It is engaged in the business of manufacturing and distributing power transformers, electronics, and telecommunication transformers.
With a 17-acre facilit and a 7,500 MVA capacity, exports to 15+ countries, and a debt-free status, it boasts industry-leading profitability and capital return ratios. Shilchar Technologies offers a wide range of transformers, including power (up to 66 KV), distribution, inverter duty for solar, wind generator, furnace transformers (up to 33 KV), and hydro (up to 132 KV), catering to diverse applications from generation to industrial use across energy sectors.
Key demand drivers include rising global electricity needs, transformer supply shortages, boosting exports, and growing investment in conventional and renewable energy. Ageing grid infrastructure in the US and EU, private sector CAPEX in traditional and green sectors, and utility-scale renewable projects further fuel transformer demand.
Shilchar Technologies’ new capacity, operational since August 2024, is expected to be fully utilized by FY26. With robust domestic and export inquiries, the company targets Rs 750–800 crore visibility for FY26 and is ready for more CAPEX amid strong transformer demand and a favorable macro-environment.
Written by Abhishek Singh
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