/**

Shri Balaji Valve Components FY26: Growth strengthens in H2, capacity build-out continues

Shri Balaji Valve Components Ltd (SBVCL), a manufacturer of precision machined and valve components, reported a steady FY26 with a clear acceleration in the second half. For the year ended 31 March 2026, revenue from operations increased to Rs 96.81 crore from Rs 81.01 crore in FY25, translating into 19.50 percent growth. EBITDA rose to Rs 15.73 crore from Rs 12.71 crore, a 23.75 percent increase, while profit after tax (PAT) expanded to Rs 8.56 crore from Rs 6.50 crore, up 31.59 percent.

The full-year performance was backed by a stronger H2FY26. Revenue from operations grew from Rs 41.35 crore in H1FY26 to Rs 55.46 crore in H2FY26, a half-on-half rise of 34.11 percent. EBITDA moved from Rs 6.52 crore in H1FY26 to Rs 9.21 crore in H2FY26, and PAT increased from Rs 3.37 crore to Rs 5.19 crore over the same period.

What the numbers say about FY26

The company’s reported margin profile stayed broadly stable with a mild improvement at the operating level. EBITDA margin stood at 16.25 percent in FY26 versus 15.69 percent in FY25. PAT margin improved to 8.84 percent in FY26 from 8.03 percent in FY25.

At a half-year level, gross margin was reported at 41.59 percent in H1FY26 and 39.73 percent in H2FY26. EBITDA margin was 15.77 percent in H1FY26 and 16.61 percent in H2FY26, indicating operating leverage and expense management in the second half even as gross margin dipped.

Business snapshot: integrated manufacturing and a broad component range

SBVCL positions itself as a one-stop solution for ready-to-assemble valve components. The presentation describes capabilities across forging, heat treatment, machining, and quality control. The forging and heat treatment facilities are stated to be PED certified. The company also lists ISO 9001:2015 certification and other European compliance references including PED 2014/68/EU and AD 2000.

The company’s product portfolio in the presentation spans a wide range of valve components. These include stems, actuator stems, spline shafts, trunnion plates, packing glands, body adaptors, stem housings, bodies, sleeves, one piece TMBV ball, bonnets, seat rings, spring buttons, lifting lugs, plugs, gear box flanges, and ISO pads. A separate list of forging products also includes bonnets, clamps, couplings, elbows, hinges, inner rings, trunnions, trunnion plates, balls, and ISO pads.

While the product list is extensive, the presentation does not provide a revenue split by product category, end-industry, or customer segment.

Revenue mix: domestic heavy, exports pick up in H2

SBVCL provides a domestic versus export revenue mix. For FY26, domestic sales contributed 73 percent and export sales 27 percent. This compares to FY25 where domestic sales were 71 percent and exports were 29 percent.

Within FY26, the mix shifted across halves. H1FY26 was 78 percent domestic and 22 percent exports, while H2FY26 was 70 percent domestic and 30 percent exports. This indicates that exports improved in the second half, although the presentation does not specify which markets, product lines, or customer programs drove that change.

The company also highlights an international footprint, stating supply to multiple countries including the United States, Germany, Italy, Singapore, Taiwan, Vietnam, South Africa, Brazil, the United Kingdom, Australia, and Saudi Arabia.

Capacity build-out: machines added in FY26 and a third plant commissioned

The presentation explicitly calls out FY26 capacity additions, stating that the company added equipment to enhance precision, throughput, and quality control. The listed additions include one five-axis multitasking machine, two horizontal machining centers (HMCs), two CNC machines, two vertical machining centers (VMCs), and other special purpose machines and inspection equipment.

In the company’s journey timeline, SBVCL states that it commissioned a third plant in Chakan, Pune in FY25-26. The document does not provide the commissioning date, investment amount, installed capacity, or utilization targets, but the rise in fixed assets and capital work-in-progress in FY26 is consistent with ongoing expansion activity.

From the balance sheet, fixed assets increased from Rs 31.02 crore in FY25 to Rs 38.99 crore in FY26. Capital work-in-progress rose sharply from Rs 0.86 crore to Rs 6.36 crore, suggesting that additional capacity-related projects were still under implementation as of year-end.

Balance sheet movements: higher working capital and a shift in borrowing mix

Total equity increased from Rs 44.34 crore in FY25 to Rs 52.90 crore in FY26, supported by growth in reserves and surplus. On the debt side, long-term borrowings reduced from Rs 19.45 crore to Rs 13.48 crore, while short-term borrowings increased from Rs 4.50 crore to Rs 9.47 crore.

Current liabilities rose from Rs 13.63 crore in FY25 to Rs 29.98 crore in FY26. Trade payables expanded from Rs 5.46 crore to Rs 15.38 crore.

On the current asset side, inventories increased from Rs 7.79 crore to Rs 12.10 crore, and trade receivables rose from Rs 24.62 crore to Rs 27.98 crore. Cash and cash equivalents declined from Rs 6.04 crore to Rs 4.12 crore.

The presentation does not provide a working capital discussion or cash flow statement, so it is not possible to attribute these movements to specific operational drivers such as export shipments, raw material stocking, customer credit terms, or capex funding.

Industry context: valve demand tailwinds and emerging themes

The presentation cites third-party market sizing for the industrial valve market. It places the global industrial valve market at USD 90.06 billion in 2026 and USD 120.79 billion in 2031. For India, it cites a market size of USD 1.67 billion in 2026 and USD 2.34 billion in 2031.

It also lists demand drivers including government investment in water and wastewater projects, power sector growth, oil and gas expansion, infrastructure build-out, industrial automation, and downstream chemical investments. As emerging themes, the presentation points to smart valves and IIoT integration, sustainability and efficiency, and customization and specialty valves.

These themes provide context for the broader sector, but SBVCL does not disclose specific product programs, R and D milestones, or smart valve-related commercialization metrics.

Takeaways from the FY26 presentation

SBVCL’s FY26 performance reflects steady top-line expansion with improved profitability, and a visibly stronger second half. The company continues to invest in manufacturing capability through machine additions and the commissioning of a third plant in Chakan.

For investors, the presentation offers clarity on headline financial performance, domestic versus export mix, and expansion activity. However, it remains light on segment-level revenue composition, capex details, and quantified operating metrics such as capacity, utilization, customer concentration, or working capital drivers. Those data points would be key to independently evaluate how the new capacity translates into sustained growth and margin durability. */