Shivalik Bimetal Controls (513097) Q2 25/26 earnings summary

Executive summary

• H1 FY2026 saw resilient performance with only a 0.9% volume contraction and strong profit after tax growth of 26.3% year-over-year, driven by margin expansion and operating leverage.

• Revenue from operations grew 8.09% year-over-year to ₹118.42 crore in Q2 FY26, and 8.46% to ₹235.12 crore for H1 FY26, reflecting steady business momentum and robust execution.

• Gross margin improved by up to 333 bps and consolidated EBITDA margin rose up to 306 bps year-over-year, reflecting effective pricing, product mix, and cost control.

• Earnings per share increased to INR 8.23 for H1 FY26, highlighting sustainable profitability.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

Financial highlights

• Asia (excluding India) sales grew 38.5% year-over-year, offsetting softness in some export markets.

• India shunt sales rose 25.23% in Q2, driven by smart meter and industrial demand.

• Americas and Europe saw temporary volume declines due to inventory adjustments and order deferrals, not structural weakness.

• Shunt segment revenue grew 10.72% YoY in Q2 FY26 and 10.14% in H1 FY26; Bimetal segment revenue increased 5.62% in Q2 and 6.87% in H1.

• Export share increased to 56% in FY25, up from 52% in FY18.

Outlook and guidance

• Management expects momentum to stabilize in H2 as customers rebalance inventories and resume normal scheduling.

• End markets in smart metering, industrial automation, and mobility electronics offer multi-year growth visibility.

• Double-digit revenue growth for FY2027 is targeted, with a range of 13%-18% if trade issues resolve.

• Forward integration into PCBA assemblies and backward integration for raw material processing are expected to improve margins and reduce working capital days.

• Strategic acquisitions and geographic expansion, including a new subsidiary in Italy, are being explored for further market expansion.