Synopsis:
Shilchar Technologies plans to add 6,500 MVA capacity at its Gavasad plant by April 2027, investing Rs. 90 crores from internal funds to meet rising demand.
During Wednesday’s trading session, shares of a company in the business of manufacturing electronics & telecom and power & distribution transformers surged nearly 11 percent on BSE, after the company announced capacity expansion with an investment of around Rs. 90 crores.
With a market cap of Rs. 5,573.3 crores, the shares of Shilchar Technologies Limited closed in the green at Rs. 4,871.7 on BSE, up by around 9 percent, as against its previous closing price of Rs. 4,460.5. The stock has delivered positive returns of over 22 percent in the last one year, but has fallen by around 2 percent in the last one month.
What’s the News
As per the latest exchange filings, Shilchar Technologies Limited has announced a capacity expansion at the existing plant located in Gavasad, Vadodara, Gujarat. The plant currently has an existing capacity of 7,500 MVA, which is being fully utilised at 100 percent.
A proposed capacity addition of 6,500 MVA is scheduled to be completed by April 2027. The investment required for this expansion is around Rs. 90 crores, and the funding will be sourced from internal funds. The primary rationale for this expansion is to meet growing customer demand.
Financials & more
Shilchar Tech reported a significant growth in its revenue from operations, showing a year-on-year increase of around 49 percent from Rs. 107 crores in Q1 FY25 to Rs. 159 crores in Q1 FY26. Likewise, its net profit increased during the same period from Rs. 24 crores to Rs. 41 crores, representing an impressive rise of around 71 percent YoY. For FY26, the order pipeline is estimated at Rs. 750-800 crores, supported by strong inquiries from both domestic and export clients.
Shilchar Technologies Limited is engaged in the business of manufacturing distributor transformers, which are used to transform power voltage from the transmission point to the end users. Its products include R-core transformers and parts, EI lamination, and distribution and power transformers.
Additionally, the company’s other products include plastic bobbins, toroidal transformers, metering current transformers (CTs) and potential transformers (PTs). Shilchar Tech manufactures and tests transformers up to 66 kV Class and 15 megavolt ampere (MVA) capacity.
Shilchar also manufactures telecom and data transformers with engineering support from Custom Magnetics, United States. It caters to diverse applications such as renewable energy generation (solar, wind, hydro), industrial needs, and specialised solutions like furnace and converter duty transformers.
Written by Shivani Singh
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