SBCL Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹134 Cr
verified against source
Revenue YoY
9%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Shivalik Bimetal Controls delivered 9% YoY revenue growth in Q3 FY26 with EBITDA margin expanding over 400bps to ~24%, driven by favorable product mix and higher value-added component supplies to marquee global customers. The quarter faced temporary headwinds from US tariff uncertainty causing reduced orders from American customers, though management views this as largely resolved—tariffs accelerated the conversion of strip exports to higher-margin components. Vishal business is recovering and expected to return to peak levels in FY27. The board approved a Rs 20 crore Pune facility for automotive bus bar and connector assembly targeting e-mobility and energy storage, with phased capacity from Q1 FY27 and projected revenue of Rs 70-75 crore in FY27, scaling to Rs 250-300 crore over 3 years. Management guides overall FY27 growth better than 9% achieved in 9M, with base shunt business potentially growing 13-19% from new customer development. Working capital days at 250-260 remain elevated; corrective actions including domestic supplier development are underway. Key risks include geopolitical tariff volatility, flat Indian switchgear market limiting biometal growth, and margin dilution from lower-margin assembly business as it scales.
Colored figures show movement against the previous available record.
Guidance to track
- Non-assembly baseline shunt business expected to grow 13-19% driven by Vishal recovery, Denso Japan orders, and 3-4 other Japanese customers already in commercial supply or starting next quarter.
- Pune facility assembly business (bus bars, connectors, PCB) targeting Rs 70-75 crore in first year (FY27), scaling to Rs 150-200 crore in FY28 and Rs 250-300 crore in FY29.
- Despite lower-margin assembly business dilution, management targets company-wide EBITDA in 23-25% range as operating leverage improves and higher-margin component mix continues.
- Working capital at 250-260 days; management committed to returning to previous year's levels by Q4 FY26 end through domestic supplier development and tripartite collection agreements.
Risks flagged
- While tariffs are expected to reduce post-March, any renewal or increase would again compress US customer ordering, particularly for raw material strip form which faces Section 232 duties regardless. Management deflected specific tariff timeline questions.
- Indian thermostatic biometal demand driven by MCB/switchgear market which has been flat for ~12 quarters; management acknowledged limited organic growth opportunity without new application development or market share gains.
- Working capital days increased ~10 days due to early December deliveries and higher silver inventory during factory relocation for silver contacts business; exposed company to commodity price volatility.
- New assembly business carries ~10% lower EBITDA than core products; if assembly scales faster than expected (toward Rs 300 crore), blended margins could compress below 23% floor management outlined.
Key quotes
- This temporary tariff disruption keeping that aside of course that matters that makes a difference. What we experienced when it comes to tariffs in the last quarter was we didn't suffer any loss of business as such but we saw substantially reduced orders.
- So in a way other than this temporary hiccup of a quarter or so we have actually seen that the tariffs have worked in our favor...we expect to actually see our US exports of shunts grow in the coming quarters.
- Our forward integration journey is about participating in the parts of the value chain where precision engineering enjoys higher pricing because the customer's cost of failure is high.
- So 2,000 to 3,000 is the value with a 60 to 65% material cost...If we were only supplying components and not putting together this assembly those components could have varied from 100-120 rupees to 300-400 rupees.
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