Vilas Transcore Powers Ahead: H1 FY26 Performance and Strategic Expansions

Vilas Transcore Limited, a prominent manufacturer and supplier of power transmission and distribution components, has reported a robust performance for the first half of fiscal year 2026 (H1 FY26). The company, known for its mission-critical components used in the power sector, demonstrated significant growth despite challenging market conditions, reinforcing its position as a key player in India's energy infrastructure.

For H1 FY26, Vilas Transcore recorded a revenue from operations of INR 228.8 crore, marking an impressive 41% year-on-year growth. This strong top-line performance was complemented by enhanced profitability, with EBITDA reaching INR 31.1 crore, a substantial 74% increase year-on-year. The EBITDA margin improved by 256 basis points to 13.6%. Profit After Tax (PAT) also saw a remarkable 74% surge, totaling INR 24.4 crore, with the PAT margin expanding by 205 basis points to 10.7%. This financial resilience underscores the company's operational efficiency and strategic market navigation.

Navigating Market Dynamics and Strategic Growth

The company's performance in H1 FY26 was particularly notable given the volatility in CRGO (Cold Rolled Grain-Oriented) steel prices, which declined by 15-20%. Despite this, Vilas Transcore managed to maintain its gross margins through efficient inventory management and a well-executed market strategy. This agility highlights the management's capability to adapt to external pressures and protect profitability.

A significant milestone for the company was the commissioning of the first phase of its 24,000 MTPA (Metric Tons Per Annum) expansion for CRGO products on July 25, 2025. This expansion, located in their new Unit III premises near Vadodara, boosts the total CRGO lamination capacity to 36,000 MTPA. This increased capacity is crucial for catering to the fast-growing demand in the power sector and is expected to drive stronger volume growth and improved operating leverage in H2 FY26.

Diversification and Future Outlook

Vilas Transcore is actively diversifying its product portfolio to become a 'one-stop shop' for transformer components. The company commenced production of Nanocrystalline Core Products in H1 FY26, which are in the initial ramp-up phase. These high-performance cores are critical for energy-efficient transformers and are expected to contribute significantly to future revenue and margins.

Another key initiative is the Radiator production facility. Although its commissioning faced a slight delay due to a power connection issue, this has been resolved, and trial runs are underway. Commercial production for radiators is anticipated to begin soon, with revenue contributions expected from December 2025. This move addresses a short supply in the market and is expected to be a better margin product.

Looking ahead, Vilas Transcore is making a strategic entry into Copper Conductor manufacturing, including Copper Paper Insulated Copper Conducts (PICC), CTC Conductors, and Paper Insulated Aluminium Conductors. This expansion, with an estimated Capex of INR 25-30 crore, is expected to be completed by March 2026, with commercial production commencing by May 2026. This initiative will strengthen the company's presence across the transformer value chain and cater to the rising demand for energy-efficient power systems, with revenue contributions expected from H1 FY27. The company also plans to expand into Phase II products like Busbars and Stripes.

Financial Discipline and Market Positioning

The company remains net-debt-free, maintaining a healthy and conservative balance sheet structure. This financial prudence provides a strong foundation for its ambitious expansion plans. Management has guided for 45-50% volume growth and 35-40% revenue growth for H2 FY26, with margins expected to remain stable. This outlook is supported by robust demand from transformer manufacturers, ongoing rural electrification, and strong investments in the power sector, including renewable energy integration.

Vilas Transcore's strategic location near Vadodara, on NH 8, provides efficient access to key markets along the Delhi-Mumbai corridor. The company's long-standing relationships with marquee customers like Voltamp Transformers, Electrotherm India, and Shilchar Technologies, along with its export capabilities to regions like Gulf Countries, Europe, and Canada, further solidify its market position.

Conclusion

Vilas Transcore Limited's H1 FY26 performance reflects a company that is not only growing but also strategically evolving. By expanding capacity, diversifying its product offerings into high-value segments, and maintaining financial discipline, the company is well-positioned to capitalize on the emerging opportunities in India's rapidly expanding power and energy sector. The focus on innovation, operational efficiency, and enhancing market presence points towards sustained and profitable growth in the coming years.