Shigan Quantum FY26: Revenue Up, Margins Under Pressure, EV Electronics Focus

Shigan Quantum Technologies Limited closed FY26 with consolidated revenue of INR 218.43 crore, up 4 percent year on year from INR 210.97 crore. The year, however, was less clean on profitability. Consolidated EBITDA (including other income) slipped to INR 21.4 crore from INR 22.4 crore, and consolidated PAT fell to INR 6.8 crore from INR 8.7 crore.

Management attributed the pressure to rising industrial metal prices and higher labour costs, alongside limited ability to pass the full increase to customers. The company responded by tightening operations and working on internal efficiencies. H2FY26 showed some sequential improvement in margins and profits, with management noting that consolidated PAT in H2FY26 increased sharply versus H1FY26, even though it was marginally lower year on year.

A three-segment business with a disclosed FY26 revenue mix

Shigan’s investor presentation positions the company as a Tier-1 automotive supplier anchored in alternative fuel systems, while expanding in fire protection solutions and EV components and electronics.

For FY26, the company disclosed a segment revenue split that helps explain where growth is coming from.

Alternative Fuel Systems contributed INR 145.6 crore, which was 64 percent of total revenue in FY26, and the segment grew 7.05 percent during the year. Fire Protection Systems contributed INR 56.4 crore, or 24 percent of total revenue, and grew 17.5 percent. Electronics contributed INR 26.6 crore, or 12 percent of FY26 revenue, growing 3 percent year on year.

The mix matters because it shows two things at once. First, the core business remains alternative fuel systems, especially CNG. Second, fire protection is scaling faster off a smaller base, supported by regulatory tailwinds and increasing adoption by OEMs.

FY26 financial performance: growth, but weaker conversion to profits

The company’s consolidated P&L table highlights a steady top line but lower profitability.

Profitability compression is also visible in the multi-year snapshot shared by the company, where consolidated EBITDA margin reduced in FY26 versus FY25, and interest costs rose.

The balance sheet data shows borrowings increasing to INR 66.11 crore in FY26 from INR 55.51 crore in FY25, while net worth rose to INR 99.26 crore from INR 92.96 crore. Working capital days were disclosed at 98 in FY26 versus 84 in FY25.

Strategy focus: fire safety and EV electronics as the next engines

Shigan’s presentation outlines a strategy anchored in four themes: defending leadership in CNG/LNG, expanding vehicle fire safety offerings, building EV components and electronics capability, and executing through group synergy.

Fire detection and suppression: regulation-led scale-up

The company describes systems such as FDAS, FAS, FDSS, and FAPS, and points to the regulatory direction of AIS-135 amendments. It also references government schemes such as PM e-Drive and PM e-Bus SEWA, and states that 50,000 plus buses are expected to be deployed by 2026, which would require compliant fire protection systems.

Shigan positions the opportunity as moving from voluntary to regulatory compliance and cites a market potential of INR 300 crore plus over the next 3 to 4 years across EV, diesel, and CNG fleets.

EV components and EMS: scaling capabilities and localization

On EV and electronics, the company highlights Shigan Electronics as a dedicated entity for EV components, power electronics, and EMS services. The portfolio described includes DC-DC converters, BMS, electric pumps, compressors, sensors, 3-in-1 controllers, and chargers, along with EMS for automotive ECUs and PCB assemblies.

The expansion lever is the second manufacturing site described in the presentation, located at Reliance METL in Jhajjar, which is planned as a 19,000 sq.m facility designed for EV and advanced electronics manufacturing, with 10 plus SMT line EMS capability.

In FY26, the company also disclosed a dedicated facility commissioned for localisation and production of auxiliary controllers for electric buses, with an investment of approximately INR 0.5 crore.

Execution highlights: capex additions, new customers, and technology tie-ups

The company disclosed commissioning of several production and testing capabilities in FY26, including a new LNG regulator assembly line, solenoid assembly line, an automatic helium leak testing machine, and an automated injector line, with disclosed investment of INR 2.914 crore.

It also disclosed new business wins from OEMs including Daimler (Mercedes-Benz Group) and PMI Electro Mobility.

In addition, the company disclosed two arrangements executed through E-Mobility Exim Pte. Ltd., a subsidiary: a technology license agreement with ICE-T (Changzhou) Co., Ltd., China, providing exclusive India rights to manufacture, develop, and localise automotive sensors and controllers, and a technology assistance agreement with V&T Electric (Xinjiang) Co. Ltd. for exclusive rights to manufacture and supply EV controllers and auxiliary inverters in India.

What to track into FY27

Management commentary frames FY26 as a tough year operationally and expects traditional businesses to grow steadily, while indicating that EV components are expected to be the real driver of the next phase of growth. The commentary also notes that LNG demand softened because the price gap between LNG and diesel narrowed, and states an expectation that this dynamic will stabilise.

The presentation includes an outlook statement of approximately 20 to 25 percent CAGR sustainable revenue growth, along with an emphasis on diversified but synergistic verticals and order visibility.

For investors, the story now sits at the intersection of three measurable themes: whether margins stabilise after cost inflation, whether fire protection continues its faster growth trajectory, and whether EV components scale from a 12 percent revenue share into a meaningfully larger contributor without further pressure on working capital and interest costs.