Shivalik Bimetal Controls Limited: Navigating Growth with Precision and Profitability in Q3 & 9M FY26

Shivalik Bimetal Controls Limited, a key player in precision engineering, has reported a robust performance for the third quarter and nine months ended December 31, 2025. The company demonstrated strong margin-led profitability and bottom-line growth, with consolidated revenue from operations increasing by 8.88% year-on-year to ₹134.23 crore for Q3 FY26 and 8.60% year-on-year to ₹408.23 crore for 9M FY26. This consistent growth underscores Shivalik's resilient execution and strategic market positioning.

The profitability metrics were particularly impressive, with consolidated EBITDA rising by 31.93% in Q3 FY26 to ₹32.38 crore and 27.32% in 9M FY26 to ₹95.40 crore. This translated into significant margin expansion, with the EBITDA margin expanding by 421 basis points in Q3 and 344 basis points in 9M, reaching 24.12% and 23.37% respectively. The Profit After Tax (PAT) also saw substantial growth, increasing by 22.42% in Q3 FY26 to ₹22.33 crore and 25.11% in 9M FY26 to ₹69.71 crore. This strong financial performance was primarily driven by a favorable product mix, increased supplies of high-margin components to key global customers, and disciplined cost governance.

Segmental Performance and Strategic Initiatives

Shivalik's core business segments, Shunts and Thermostatic Bimetals, continued to drive performance. For Q3 FY26, both segments contributed almost equally to the revenue, with Shunts recording ₹55.01 crore (up 7.50% YoY) and Bimetals ₹55.12 crore (up 0.12% YoY). The company's strategic focus on high-precision Electron Beam Welding (EBW) for shunt resistors and high-pressure Diffusion Bonding for thermostatic bimetals continues to create a dual-process fortress, establishing high entry barriers and a sustainable cost advantage.

Geographically, Q3 FY26 saw robust traction in Shunts across Europe (+98.64% YoY) and India (+18.89% YoY), with Asia (Others) also up +8.50% YoY. However, the Americas experienced temporary softness, with a decline of 22.29% YoY for Shunts. In the Thermostatic Bimetal segment, Europe remained strong (+42.04% YoY). On a nine-month basis, Shunts' growth was led by Asia (Others) (+36.65% YoY) and India (+21.18% YoY), while Thermostatic Bimetal grew strongly in Europe (+47.95% YoY).

Forward Integration and Capacity Expansion

A significant strategic move for Shivalik is the establishment of a new manufacturing facility in Pune, Maharashtra. This facility will produce automotive busbars/connectors and their subsequent assemblies, marking a crucial step in the company's forward integration roadmap. The product line is targeted for launch in April 2026, with proposed capacity additions of approximately 1.0 million busbars and 40,000 assemblies per month, phased in from Q1 FY27. The planned investment of ₹200 million for this project will be funded through internal accruals, underscoring the company's disciplined capital allocation and debt-free status. This initiative is expected to add 70-75 crore in FY27, growing to 150-200 crore in FY28, and 250-300 crore in FY29.

Operational Resilience and Future Outlook

Despite challenges such as geopolitical factors and US tariffs, which led to reduced orders from US-based customers in Q3, Shivalik demonstrated operational resilience. The company proactively converted its strip business into higher-value components to mitigate tariff impacts and is diversifying its copper sourcing globally to ensure production continuity and delivery reliability. While working capital has increased to support inventory, management is focused on maintaining efficient funding costs.

Looking ahead, Shivalik is optimistic about supportive demand tailwinds from policy measures linked to AI, data centers, and the broader electrification trend. The company anticipates that European and US FTAs will accelerate customer additions in these regions. Management expects the shunt baseline business to grow between 13-14% to 18-19%, and India and other markets to see 8-10% growth. The company's EBITDA margin is projected to remain in the 23-25% range as it scales its assembly business. The Board also declared an interim dividend of ₹2 per equity share for FY 2025-26, reflecting its commitment to shareholder returns.

Shivalik Bimetal Controls Limited continues to focus on profitable growth, deepening customer relationships, and strengthening cash conversion, positioning itself as a key enabler in the global electrification journey.