Powering
Growth
Dear Shareholders,
I am pleased to write to you, reflecting on what has been a truly
remarkable year for Shilchar Technologies. FY25 has been a period of significant
achievement, marked by robust growth and operational excellence that has positioned us
well to capitalize on the opportunities ahead. Our performance this year is a testament to
the unique positioning of our business model, and the trust our customers have placed in
us.
THE BACKDROP
The transformer industry in India is currently experiencing
unprecedented momentum, driven by large-scale investments across the power generation,
transmission, and distribution sectors. These investments are being fuelled by the
country's growing energy requirements and its ambitious plans to modernize infrastructure
and transition towards renewable energy. Sub-domains such as renewable energy projects and
grid upgradation initiatives are also witnessing healthy capital inflows, further
providing impetus to the sector. As India's electricity demand is projected to peak at 273
GW in June 2025 · the need to expand and upgrade infrastructure has never been
greater.
India's power sector is poised for a transformative decade, with an
estimated D 42 trillion investment planned for upgrading infrastructure and meeting rising
energy demand, as per some publications. A significant portion of this investment will
focus on achieving 500 GW of renewable energy capacity by 2030 · a cornerstone of
India's sustainability efforts · and addressing a projected annual growth rate of
over 7% in power demand. Plans to add 250 GW of new generation capacity within the next
five years further underscore the scale of transformation underway. This environment
presents unparalleled opportunities for the transformer industry, which plays a critical
role in enabling these advancements.
At Shilchar Technologies, we have spent nearly two decades building
expertise in renewable energy applications, export markets and other industrial niches.
This focus has positioned us uniquely to leverage the
Our performance this year is a testament to the unique positioning of
our business model, and the trust our customers have placed in us.
tailwinds driving growth in both domestic and international markets.
Our ability to cater directly to renewable energy projects while simultaneously serving
private sector investments across industries gives us a competitive edge. Additionally,
buoyant export demand is creating new avenues for growth, reinforcing our belief that
Shilchar is well-equipped to thrive in this dynamic environment.
PERFORMANCE REVIEW
FY25 was particularly significant for us as we concluded an additional
3,500 MVA capacity expansion in August 2024, increasing our installed capacity to 7,500
MVA.
This milestone has enhanced our ability to meet growing industry demand
effectively, with results becoming evident in our performance during the second half of
the year. Our production reached ~5,750 MVA during FY25, supported by utilisation of
incremental capacity that stood at 77% on a blended basis. This operational scale allowed
us to achieve a significant volumetric growth, translating into substantial top-line
growth for the Company.
Our Revenue from Operations stood at D 623 Cr, recording a significant
increase compared to FY24's D 397 Cr, demonstrating our ability to scale sustainably while
maintaining operational efficiency. EBITDA margin stabilizedat 30% slightly higher than
that of last year,
reflecting operational efficiencies and favourable environment.
Treasury & Other Income from our net cash reserves of D 91 Cr. further bolstered
profitability, culminating in a PAT of D 147 Cr., a 60% surge from the previous year's D
92 Cr.
Our financial position remains one of our key strengths as we continue
forward on this journey of growth and innovation. With a debt-free balance sheet and
substantial net cash reserves, we are fully self-sufficient in pursuing future growth
objectives through internal accruals alone. Recognizing this strength and taking into
account FY25's stellar performance, the Board of Directors has recommended a final
dividend of D 12.5 per share for FY25
· a gesture that reflects our commitment to rewarding
shareholder trust while ensuring sustainable reinvestment into the business. Additionally,
subject to shareholder approval, the Board has also recommended a bonus issue of - 1 new
fully-paid up equity share for every 2 share held by eligible investors.
OUTLOOK
Looking ahead, we are actively exploring further capacity expansion at
our Gavasad site · a strategic move aimed at aligning with future demand
projections from our clientele and broader industry trends. While specific details
regarding incremental capacity and capital outlay are yet to be finalized, we remain
confident about leveraging this sizable land parcel for sustained growth over many years
to come. Even after achieving a total installed capacity of 7,500 MVA during FY25, a
significant portion of the Gavasad site remains available for future brownfield expansions
· a unique advantage that enables us to build capacity
efficiently and quickly as market conditions evolve.
Our approach toward expansion will remain prudent and calibrated as we
strive to balance ambition with fiscal responsibility. By focusing on brownfield
developments at Gavasad, we can scale faster while maintaining cost efficiency ·
ensuring that all capital allocation decisions align with our long-term vision and
commitment toward delivering value to all stakeholders.
As we step into FY26 with optimism, Shilchar Technologies is
well-positioned to seize opportunities in both Indian and global power transmission &
distribution markets. The agility built into our operations allows us not only to adapt
but also thrive amid changing industry dynamics. Our niche areas of expertise have enabled
us to carve out a distinct identity in the market · one defined by quality
products, customer-centric solutions, and profitable growth.
Over the years, Shilchar has built remarkable brand equity within its
domain · a reputation that extends beyond India into export markets where we are
increasingly becoming a sought-after name. This recognition is not only an acknowledgment
of our technological capabilities but also a reflection of the trust placed in us by
customers worldwide.
As we move forward into FY26 and beyond, we remain committed to
fortifying this legacy while striving for excellence in everything we do · from
design & innovation to manufacturing transformers that set us apart from the industry.
In closing, I would like to extend my heartfelt gratitude to all
stakeholders · our employees, customers, and shareholders · for your trust
& support throughout this journey.
Together as partners in progress, I am confident that Shilchar
Technologies will continue scaling new heights while delivering sustainable value across
all fronts.