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

Executive summary

• H1 FY2026 saw resilient performance with only a 0.9% volume contraction, strong earnings momentum, and revenue from operations growing 8.09% YoY to ₹118.42 crore in Q2 and 8.46% to ₹235.12 crore for H1, reflecting robust execution.

• Profit after tax rose 26.3% YoY, with EPS reaching INR 8.22, and consolidated net profit for Q2 FY26 was ₹2,485.38 lakhs, up from ₹1,994.26 lakhs in Q2 FY25.

• Regional growth was robust in India (shunt sales up 25.23% in Q2) and Asia ex-India (sales up 38.5%), offsetting softness in some export markets.

• Strategic focus remains on high-value assemblies, cash conversion, integration initiatives, and geographic expansion, including a new subsidiary in Italy.

• Board approved unaudited financial results, appointed a new internal auditor, and sanctioned a ₹25 crore working capital facility.

Financial highlights

• Gross margin improved by up to 333 bps YoY, reaching 49.82% in Q2 FY26 and 48.88% in H1 FY26.

• EBITDA margin expanded to 24.40% in H1 FY26, with consolidated EBITDA margin up 305 bps YoY.

• Earnings per share increased to INR 8.22 for H1 FY2026 and ₹4.27 for Q2 FY26 (consolidated).

• CapEx of INR 32 crore in capital work in progress, mainly for automation and subsidiary expansion.

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

Outlook and guidance

• Management expects double-digit growth for FY2027, potentially in the 13%-18% range, assuming resolution of trade-related issues.

• Margin improvement is expected to continue, driven by high-value product developments and integration initiatives.

• Revenue from new PCBA assembly is on track for Q4, with FY2027 top-line contribution estimated at INR 50-70 crore.

• Both white label and PCBA projects are progressing as planned, with revenue ramp-up expected in Q4 and FY2027.

• Internal audit appointment and working capital facility indicate focus on compliance and liquidity for future growth.