Revenue
Margin
Demand
Guidance
Tone
Event Participants
Executives
2 Sumer Ghumman, Whole-Time Director; Shankhini Saha, Director of Investor Relations (Dickenson World)
Analysts
10 Bhavya Nahar; Deepan Narayanan; Dhaval Shah, Aditya Birla Sun Life AMC; Dhruv Jain, Ambit Capital; Gokul Handa, BTH Capital; Naushad Chaudhary; Nirali Gopani; Raj Agarwal; Rushit Shukla; Vivek Seth
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹182.2 crores | +33.4% YoY, +13% QoQ; driven by value-added Shunt conversion and silver price escalation |
| EBITDA | ₹43.2 crores | +35.2% YoY, +23% QoQ; margin improvement from product mix shift to components |
| PAT | ₹33 crores | +44.9% YoY, +26% QoQ; profit growth outpaced revenue, aided by sustainable margin levers |
| Shunts Revenue Growth | +18.7% YoY | Strongest engine; strip sales reduced to ~1/3 of prior year, replaced by higher-value components |
| Bimetals Revenue Growth | +7.4% YoY | Muted but bottoming; first sign of quantity uptick in Indian market in 4-5 quarters |
| Americas Shunts Growth | +30% YoY | Recovery after soft FY26; resurgence from key US customer at higher value-add |
| Strip to Parts Conversion | Strip down to ~1/3 of prior volume | Remaining strip is higher value-add; lowest value strip converted to parts |
| Silver Price Impact | ~50% of revenue growth | Silver nearly doubled YoY; QoQ stable/slightly down, showing genuine volume growth |
| Consolidated Segment Mix (FY27E) | Contacts: 30-35%; Assemblies: 15-16% | Subsidiary scaling electrical contacts; assemblies (busbar, PCBA) ramping post-Pune phase |
| Standalone Segment Mix (FY27E) | Bimetal: 44-45%; Shunts: 54-55% | Continued shift toward Shunts components with rising value-add |
Geographic & Segment Commentary
- India: Broad-based growth across both businesses; domestic Bimetals showing first quantity uptick in 4-5 quarters, supported by real estate and infrastructure demand.
- Europe: Strong growth led by Shunts; remains a key growth geography.
- Americas: Shunts +30% YoY, early improvement after softer FY26; resurgence from key customer is higher value-add business.
- Asia: Weaker during the quarter; management focused on rebuilding momentum.
- Switchgear: ~45-50% of total revenue tied to switchgear end-use (about 40% of Bimetal, ~60% of Contacts revenue).
Company-Specific & Strategic Commentary
- Pune Facility Phase 1 Consent: Received Consent to Operate (CTO) for Phase 1 post-quarter; scalable manufacturing platform for Cell Connecting Systems (CCS), busbar and PCBA assemblies.
- CCS Scale-Up Plan: Revenue potential of ₹300-400 crores in ~3 years; year 1 at 10-15% (₹30-60 crores), year 2 at ₹150-200 crores, year 3 ₹300+ crores; incremental CapEx of ₹20-25 crores (high-CapEx processes already at Solan).
- CCS Demand Drivers: Safety-centric design for EV two-wheelers (EBW welded strip); first customer is a major two-wheeler EV OEM, with 2-3 more designs being developed; import substitution of battery pack components.
- Four-Wheeler CCS: Plans to introduce assemblies for four-wheelers in Indian market; in talks with battery pack manufacturers alongside OEMs.
- New Vertical Exploration: Active talks for technology partnership/JV in specialized metallurgical material for electronics (massive market, few global players) and automotive fuses; separate team dedicated to new technology scouting; possible acquisition route.
- Customer Concentration: Reduced from 35-40% historically to below 20% even in max-case scenario for FY27 (largest customer).
- EB Welded Shunt Penetration: Key customer patented higher-accuracy resistor designs ~1 year ago; attracting even Chinese EV OEMs who source for accuracy, not just price.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth (FY27) | 20-30% (consolidated) | Based on customer forecasts, order book, and early ramp-up of CCS; early in year, subject to change |
| CCS Revenue Ramp (FY27) | Minimal contribution in Q1; substantial growth from Q2; main facility operational Oct 2026 | Revenue of ₹30-60 crores expected in year 1, ₹150-200 crores in year 2, ₹300+ crores in year 3 |
| Revenue Mix (FY27) | Consolidated: Contacts 30-35%, Assemblies 15-16%; Standalone: Bimetal 44-45%, Shunts 54-55% | Reflects forward integration; shift to higher-value components |
| EBITDA Margin Direction | Sustainable improvement | Driven by value-added product mix, not commodity prices; vast majority from sustainable component conversions |
| Largest Customer Exposure | Below 20% of revenue | Even with US recovery; diversification maintained |
| Bimetals Growth Turnaround | Expect growth direction; near-term domestic improvement, export developments in 4 quarters | 70-80% of thermostatic bimetals consumption concentrated in 4-5 large players; Indian market seeing first uptake in 4-5 quarters |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Price Volatility | Silver price nearly doubled YoY contributing ~50% of reported revenue growth; management notes EBITDA margins are largely insulated, but absolute revenue remains exposed to metal price swings |
| EV Two-Wheeler Market Adoption | CCS scale-up dependent on EV adoption; management called out that if an OEM sells 5,000 units vs. 10,000 planned, revenue path changes; safety perception improving but market still gaining confidence |
| Import Supply Chain Inertia | OEMs have existing import supply chains for battery packs; switching only at design change or life cycle end; CCS penetration to be gradual (5-7 year horizon) |
| Market Concentration for Bimetals Data Accuracy | Customer forecasts considered reliable as 70-80% of thermostatic bimetals consumption is with 4-5 players; risk if these estimates are wrong |
| Capacity Lead Times | Bimetals capacity expansion is highly CapEx-intensive and takes years to commission; at 40-45% utilization, any sudden demand surge is hard to serve quickly |
Q&A Highlights
FY27 Revenue Guidance and Refining Mix
- Question: What is FY27 revenue growth guidance and segment mix? (Dhruv Jain, Ambit Capital)
- Answer: If forecasts hold, consolidated growth of 20-30% is achievable. Standalone mix expected at Bimetal 44-45% and Shunts 54-55%; consolidated Contacts at 30-35% and assemblies at 15-16% of total revenue. (Sumer Ghumman)
Strip-to-Component Conversion and Silver Impact
- Question: Is Shunts growth driven by value-added conversion? How much is silver pricing? (Nirali Gopani)
- Answer: Strip sales in Shunts fell to one-third of last year; remaining strip is higher value-add. About half of the 33% revenue growth attributed to silver price, rest to volume/value-add. Sustainable EBITDA improvement comes from component conversions, not materials; materials contribute minimally to profitability. (Sumer Ghumman)
Bimetals Turnaround Timing
- Question: When will Bimetals growth return? (Deepan Narayanan)
- Answer: For the first time in 4-5 quarters, customers are signaling quantity increases, driven by real estate and infrastructure in India. Export developments (stalled by US tariffs) have restarted with existing customers; expect meaningful volume additions in ~4 quarters. (Sumer Ghumman)
CCS Opportunity Size and Ramp
- Question: What is the runway, order status, and FY27 guidance for busbar/CCS? (Rushit Shukla)
- Answer: Product is for a two-wheeler EV OEM through a supplier (NDA-bound); another 2-3 designs in development. Phase 1 capacity is specific to one model; plant fully operational only in October. Revenue potential of ₹300-400 crores in 3 years: ₹30-60 crores in year 1, ₹150-200 crores in year 2, ₹300+ crores in year 3, subject to EV adoption. (Sumer Ghumman)
CCS Capex Requirement
- Question: Incremental investment for Pune to reach ₹300-400 crores revenue? (Naushad Chaudhary)
- Answer: CapEx for the entire project is ballpark ₹20-25 crores, but high-CapEx processes already exist at Solan; Pune is low-incremental-cost expansion. Further investments only if new assembly types are added. (Sumer Ghumman)
Precision Electronics Opportunities
- Question: Updates on new initiatives beyond FY28-29? (Naushad Chaudhary)
- Answer: Two areas in talks: (1) specialized metallurgical material for electronics (few global makers, huge market), (2) automotive fuses with joining capability fit; both could be tech partnership, JV, or small acquisition. Announcements expected by next earnings call. (Sumer Ghumman)
Shunts Growth Decomposition
- Question: What proportion of growth from value-add vs. commodity? (Bhavya Nahar)
- Answer: ~70-75% of value-add growth from conversion to parts, rest from material price contribution. (Sumer Ghumman)
Inorganic Growth and Cash Deployment
- Question: Plans for acquisitions with strong cash generation? (Vivek Seth)
- Answer: Dedicated team works on new developments; 2-3 opportunities identified for greenfield or tech partnership. Materializing 1-2 projects soon; conservative but growth-mindset approach to deploy cash. (Sumer Ghumman)
Switchgear Revenue Share
- Question: How much revenue goes to switchgear? (Vivek Seth)
- Answer: About 40% through Bimetals; ~60% of Contacts revenue is switchgear; overall ~45-50% of total revenue. (Sumer Ghumman)
EV Adoption and Four-Wheeler CCS
- Question: Will every two-wheeler eventually use EBW solution? How does Shivalik benefit from four-wheeler EV demand? (Dhaval Shah, Aditya Birla Sun Life AMC; Raj Agarwal)
- Answer: EBW adds safety benefit at marginal cost (₹100-300 on a ₹25,000-40,000 pack), so price is not a deterrent; eventual adoption across OEMs in 5-7 years. Increased volumes from Chinese OEMs due to accuracy-driven patented designs; four-wheeler CCS and assemblies being developed for Indian market in parallel. (Sumer Ghumman)
Customer Concentration
- Question: What is largest customer concentration now and diversification steps? (Gokul Handa, BTH Capital)
- Answer: Peaked historically at 35-40%; even with US recovery, FY27 max-case stays below 17-18% due to healthier diversification. (Sumer Ghumman)
Capacity Utilization
- Question: Capacity utilization numbers? (Gokul Handa, BTH Capital)
- Answer: Shunts welding capacity at ~70%, with buffer capacity that can be added in 2-3 months; Bimetals at only 40-45% due to CapEx intensity and long commissioning timelines. (Sumer Ghumman)
Key Takeaway
Shivalik Bimetal Controls delivered a strong Q1 FY27, with consolidated revenue of ₹182.2 crores (+33.4% YoY), EBITDA of ₹43.2 crores (+35.2%), and PAT of ₹33 crores (+44.9%), driven by a structural shift toward higher-value-added Shunt components—strip sales fell to one-third of prior year levels—and a partial tailwind from silver prices, though the majority of margin expansion was attributed to sustainable product mix changes. Strategic momentum centers on forward integration into Cell Connecting Systems, busbar, and PCBA assemblies from the newly approved Phase 1 Pune facility, targeting ₹300-400 crores revenue in three years with modest incremental CapEx of ₹20-25 crores, plus exploratory technology partnerships in specialized electronic materials and automotive fuses. Management guided FY27 revenue growth of 20-30%, supported by resurgent US demand from a key customer at higher value-add (Americas Shunts +30%), improving domestic Bimetals momentum, and first signs of a Bimetals turnaround. Watch points include EV adoption pace in India, silver price sensitivity on reported revenue, and orderly execution of customer qualifications for CCS ramp-up, with the main manufacturing facility becoming fully operational in October.