Good afternoon everyone, and welcome to Shivalik Bimetal Controls quarterly earnings call for Q3 and nine months ended 31st December 2025. Overall revenue has grown by 9% year-on-year both for the quarter as well as the nine-month period.

Continuing the company's trend of improving profitability, EBITDA margin continues to grow disproportionately to sales, with the quarter closing with an EBITDA margin of over 24%, marking an increase of over 400 basis points year-on-year. Q3 in general has been challenging for us, with unpredictability related to geopolitical factors, especially related to US tariffs.

We generally experienced reduced orders from our US-based customers during that time. We hope to see this trend reverse in the current and upcoming quarters.

Our focus lies in strengthening our core business, and our priority is keeping our earnings growing. As our core businesses operate in segments with high entry barriers, where customer approvals are hard-won, and relationships are built over years.

Our aim is not to chase the broadest opportunity set; our aim is to be indispensable in the programs we participate in through reliability, responsiveness, and consistent quality. Over time, this translates into deeper share of wallet, stickier relationships, and more stable demand through cycles.

Secondly, we are moving up the value chain with discipline. To explain this further, as we scale, we want to improve value-added content per program and strengthen revenue visibility.

Our forward integration journey is about participating in the parts of the value chain where precision engineering enjoys higher pricing because the customer's cost of failure is high. In that context, our board has just approved our plans to set up a new facility in Pune for the automotive busbars and connectors and subsequent assembly business.

This is a meaningful milestone and is designed to broaden our participation in e-mobility and energy storage applications, while staying true to what we do best, which is carrying out precision manufacturing at scale. We plan to launch this in 2026 itself, with a proposed phased capacity addition from Q1 FY27 onwards.

The ₹200 million capex funding for this project will be managed through our internal accruals. Strategically, what this does is simple: it helps us become more relevant to customers with a wider solution outlook, and improves the long-term quality of our growth.

Thirdly, we aim to protect the quality of our earnings through optimal product mix, better discipline, and smarter capital allocation. This means that moving ahead, our growth must come from with improving economics.

To demonstrate this principle, you would have noticed that this quarter's margin expansion was supported by a mix improvement and higher supplies of value-added components to some marquee global customers alongside cost discipline. This is the direction we want to keep reinforcing: better mix, tighter execution, and measured investments.

At the same time, we remain thoughtful about shareholder returns. I am pleased to inform you that the board has declared an interim dividend of ₹2 per equity share.

If I were to summarize, we are building Shivalik for the next phase of growth with a steady hand, a stronger core, and a disciplined move into high-value assemblies, and a clear focus on improving the quality of earnings as we scale. Thank you.

Thanks a lot. Hello team.

Couple of questions from my side. The first question, if you could just give some clarity.

Now I know it's slightly early days, but given the tariff resolutions, any conversations that you've had with your customers from the shunt side in US and even the bimetal side as to if we should start seeing numbers really improve for the Americas quite materially going forward? Any thoughts there would be very helpful because we've seen that that business has really suffered a lot over the last one, one and a half years.

Right. The answer to this is slightly different for both product types.

We supply almost in similar equal value both thermostatic bimetal as well as shunts to the US. Now this temporary tariff disruption, keeping that aside, of course that matters, that makes a difference.

What we experienced when it comes to tariffs in the last quarter was, we didn't suffer any loss of business as such, but we saw substantially reduced orders, and I'm sure everybody can understand that at that 50% tariff value, everybody was buying as minimum a quantity as possible or whatever minimum quantities that they needed. We saw some product types suffer over there.

There has been a major benefit also to Shivalik because of these tariffs. What has happened is that a large portion of our US-based export of EB-welded or shunt materials was in raw material form.

That means we were welding strip and shipping large quantities of that to Vishay. Now that, because of these tariffs, immediately put Vishay and us into action to move those into components.

Why that is because that tariff is not just related to the tariffs that was placed on all general imports from India, but copper as well as stainless steel anyway attract a surcharge over its import. Even after this tariff gets reduced to 18%, if we continue to supply in strip form, that business would have suffered.

What that has done as a result is quickly converted a lot of that strip business into parts, and we love that because that is much higher value add as compared. The kind of part numbers that we're already supplying for the US market now is, A, now is going to be affected by lower tariffs, but B, it's a much higher value product.

We expect to actually see our US exports of shunts grow in the coming quarters. When it comes to thermostatic bimetal, of course some of our customers who were buying in strip form have completely fast-forwarded this transition into components.

In a way, other than this temporary hiccup of a quarter or so, we have actually seen that the tariffs have worked in our favor. In order to answer your question, both shunts and thermostatic bimetals, we should see considerable improvement in what business we get from the US in this quarter and the coming quarters.

Sure. Sumer, just another question on the bimetal side, right?

If you look at the bimetals business that we have from India, that number over the last, I'd say almost 12 quarters has been more or less in that range. In fact, it's actually gone down lower.

If you could just share some time to help us understand why is that been the case and how should we think about the India business on the bimetal side going forward? What are you trying to do here and how should possibly growth come back here?

That's my second question.

See, when it comes to the Indian market, thermostatic bimetal is simply driven by market growth. If you see in the last four years, as you mentioned, the the general switchgear market has also had this sort of a flat kind of a performance.

You you may see in certain years it's been 5% or 6% or so, but, it doesn't go 100% in line with the switchgear market because MCBs is the only product mainly, the real volume-based product where thermostatic bimetal is. We have seen that generally even though we see a lot of development happening, we've seen the general switchgear market itself is has had a bit of a flat situation.

Now when it comes to export, sure, export we had a we have opportunities to convert and get more wallet share or to get more market share with a certain customer. What we were targeting specifically in order to grow in those areas was for the US market, and those developments have been going on for more than a year and a half or two years ever since we were we had confidently started our new capacities.

Although, earlier this year, earlier last year I would say, earlier this this financial year, when when these tariffs and all started coming about, we noticed that generally the the trend for new developments or the openness of our customers to develop new part numbers for thermostatic bimetal specifically for the US market took a hit. It it sort of paused, and and rightfully so, because, if tariffs are not clear, then there's a lot of cost, as you can imagine, a lot of cost involved in developing these these a new supplier or an existing supplier for a new location.

Everything came to a halt or everything slowed down when it come came to development as we mentioned before. With more clarity on the tariff side, I think we should see some some improvement in those areas.

Really speaking, when it comes to to bimetal, other than the market growth itself, there is limited opportunity for growth for specifically for switchgear applications. The best way to grow in that area, what we are and what what we are working on is we're looking at, certain other applications where this kind of these kind of bonding or these kind of joining processes we can utilize for certain applications.

A lot of those projects are in R&D, and we would like to utilize some of our capacities for that so that we can get, we can we don't need to just rely on on on market growth or or wallet share increase. We are looking at some new opportunities in that area as well.

That is one way of of of growing, and the other one is of course, like I said, trying to get more business share from the US, which we we we we should we hope to see resuming now with more clarity on this.

Sure. My final question is on the new busbar capex that you're doing.

A, how should we think about the scalability of the same? Is this along with the PCB assembly that you're trying to do, how should FY27 look like?

We've seen a challenging year in terms of growth. With these new initiatives, if you could just throw some granular details as to how you're looking at FY27 overall from a growth perspective with various initiatives that you're trying to drive?

Thank you so much and all the best.

Interestingly, some of the business opportunities that we've been working on for the last 7, 8 months related to these kind of assemblies, some of them are already converting into orders. Some of them have already converted and business lower volumes has already begun, which is why the decision to set up the facility in Pune, initially we were going to supply the starting part of it from Solan, but why we decided to set this up in Pune, and we've identified the area where we're going to put this plant is a rented, ready-to-use facility.

The reason behind that is that we have orders in hand which we have to supply from before in fact starting in March and then really in larger volume starting in April. In order to be able to fulfill those orders, we need to have a facility ready and functional within this period of March.

Basically the reason behind setting this up first of all in Pune, and the reason behind setting it up was that when we got deeper into it, we realized that the volumes are much larger than what we were initially told, and it is better that we are close to our customers there. The four or five major projects that we are working on in this field are all based in and around that area.

From a growth point of view, what we expect to see that this capex that we're talking about should bring in this assembly business with four or five projects. Over a three-year period, it could be in the range of ₹250 to ₹300 crores, with the first year, this '27, being about ₹70, ₹75 crores out of that.

This is already developed. These components are already designed, developed, ready to move, it's not something that's just a part of a plan.

It's actual business that is starting. Let's say if ₹70, ₹75 or ₹80 crores of this business can be added in '27, then maybe about ₹150 to ₹200 in '28 and about ₹250 to ₹300 in '29.

That's what we have in mind and that's the indication we have from our customers for whom we're developing this.

Yeah. Thanks for the opportunity.

Congrats for the good set of numbers. My first question will be on the new product that we have announced, that is the busbar.

Sumer, I would like to understand mainly more about the market, what kind of total addressable opportunity we have, who are our key competitors in this market, what this product is about, who are the main customers or could be potential customers for us in this business? If you could just elaborate on that first.

Yeah.

Basically like like the way we manufacture these resistors by way of EB welding, there are certain busbar components that also require that welding. Now we've caught hold of this this opportunity first is because multiple components used in this final subassembly require EB welding, and that becomes a no-brainer opportunity for us because, as you can imagine, where wherever more and more EB welding is done, that's what makes that product more suitable for Shivalik.

The the the main target customer base for these products is two-wheeler EVs. Some four-wheeler EVs EV applications also require these kind of busbars, but primarily it is for two-wheelers.

Who we are targeting is all two-wheeler all two-wheeler manufacturers in India for EVs, which we which we can foresee is expanding and the interest of the consumer in buying EV two-wheelers is consistently increasing. Up until now, of course, whatever EVs EV two-wheelers are being sold, usually these these entire systems were being imported.

We didn't, there was there was no opportunity. With a recent shift of these manufacturers, the two-wheeler manufacturers pushing towards making these things in India, with along with the ECMS push and PLI push and all of those things, a lot of the larger players want to develop these in in India, and some of them are absolutely new models or new new products being launched.

Now, because of NDA reasons, I I I can't specifically mention which which final users are these, but I can tell you that they are the the two EV projects that we're working on right now for two-wheelers, which we're closest to to supplying, are both number one and number two of when it comes to EV when it comes to two-wheeler manufacturing in India, not just EVs, but as a whole. The the two largest are the ones that we are working with, and there are many others in the pipeline, but these are the, the the ones.

There is, as of now, there is no competition because nobody does this EB welding. Nobody Now, unless somebody makes this entire complicated assembly somewhere else in the world and then ships it to India, which I highly doubt because that's primarily the reason why this is being shifted to India.

As of now, there is no competition unless somebody sets it sets up something to be able to do this. This is actually a very good product for us because it's not just an assembly which requires one or two of our components, but more than a very large percentage, which varies from customer to customer, but a really large percentage of value add as well as the the technology part of it comes from from Shivalik, and it's not just, simple bought-out component.

Understood. Since this is a kind of a forward integration for us, our margins should be better here, should I assume?

As a percentage, maybe it should be about 10% lesser, maybe 8% or 9% lesser EBITDA, but of course the top-line value is more than 15 times or so of the component alone. If I include the other EB welding, let's say about 10 times more than that value.

This is not really a new thing for us. We are now formally announcing it as a new unit because now business is starting, but I don't know if you've been following the previous discussions and calls and the information we've been putting out, these are projects that we've been working on over the last 12 months.

The margin does come down as a percentage, but as a whole, because the top-line value goes up, even with a 10% reduced or on the higher side even a 10% reduced EBITDA. The main thing about this business is that since it's technically very related to our EB welding as well as our resistors, it's a very sustainable margin.

It's not something that we'll see eroding over time.

I'd like to add, Akash.

Please. Please.

To your question. For this product line, yes, it's compared to our current organic products, less margin, but overall if you see the company's margin, it will not impact our EBITDA anyway.

Okay. How will you all offset the decrease in the margins in this product?

Just wanted to understand.

Due to volume, yeah.

Okay. The competition currently Sumer is only global, right?

No Indian competitor in this busbar...

No. First for somebody to truly be an Indian competitor, first they'll have to start EB welding and start making these resistors.

That is the most important aspect. As of now, we don't have anybody who we at least know of or at least we have information on, no, as of now, no.

How many busbars will be going in a two-wheeler? That we can kind of size or get some sense of the scale of the opportunity that we have?

Right. I think, see, it varies a lot from design to design, but to give you a simpler answer to this, I would say that this kind of an assembly for let's say a high-value design, let's say a design in which there's more number of busbars and more welding or more material required, the value of that product overall would be about 20 ₹2,000 to ₹3,000.

Roughly about 62 or 60 or to between 60% to 65% of that would be material cost.

Okay. Per vehicle it'll be only one busbar, is it?

No, it'll be multiple. It, again, depends on various designs.

Some designs actually don't have any busbars. Two-wheelers in most cases have busbars, but then again, certain two-wheelers don't.

It varies from design to design, but the two major projects that we are working on have four different components of different types of EB welding involved inside the whole assembly.

On an average, any number you could give us?

No, in terms of the value or is it

The units per vehicle, the content per vehicle.

See, let me answer this question.

Very

As per the design of the battery, Akash. It entirely depends on the design of the battery, and based on which maybe the requirement can start from four in a battery set, maybe it will increase to six to eight.

It entirely depends on the battery set.

It's very difficult to put an average there, each design can vary a lot. That's why I think a better way to look at it is an average value because that gives you a better picture, because components can vary in size.

There could be a five of a ₹10 component and there could be four of a ₹100 component. It's just too many variables there.

Understood. Average value add per vehicle or content per vehicle can be considered as ₹2,000 to ₹3,000, which you mentioned.

That's correct. That is a better way to look at it because ₹2,000 to ₹3,000 is the value with a 60% to 65% material cost.

One could say that in this ₹2,000 to ₹3,000, if we were only supplying components and not putting together this assembly, those components could have varied from let's say a ₹100, ₹120 to ₹300 or ₹400. That is actually the right way to look at it, and besides, we would have never had the opportunity to supply those ₹300 or ₹400 components because that assembly would have been manufactured wherever the final product was being manufactured, which up until now was being imported.

Hi. Again, my question is on the US business.

Sir, tariff was one challenge, and we were also facing some issues with Vishay. Now with those issues behind us from your commentary, what is the kind of growth you expect from the US business for the next year?

You mentioned it would improve, but if you could quantify something. Are there any other challenges also that we face in the US?

Right. The one big challenge that we faced in the US was more related to one customer, as you rightly mentioned.

A part of their business or the part of their design had recently also gotten phased out, so that also had a contribution in this reduction. Now what Vishay has recently done is that they've developed certain components for this application for the largest global EV manufacturers in the world, both the top one and top two.

That business we are already getting, now it's part of our revenue at this point. We have restarted business with Vishay to a point we expect that partly in this quarter as well as if we look at next year, which is '27, Vishay business value coming back to similar levels to what it used to be during its peak.

That business has already begun, we've already got orders. We foresee a good future when it comes to the US export.

I think there's too much noise in your [line?] .

Right. With that business added, we feel confident that what was showing as a sort of a negative for us as far as US exports are concerned, it should have an opposite effect now.

Vishay should go back to its levels of what it used to be two to three years ago, and we'll start seeing that difference within even this quarter and the quarter after because that business is already in regular supplies now. That's all components, by the way.

That's a major advantage what I had mentioned when I answered the first question today. These are all components and so they're much higher value add, which also brings this to a point that this trend of increasing profitability we should continue to see because the few businesses that are adding to revenue as we speak are on the higher-margin side.

Correct, sir. You also see these product developments that were paused because of the tariffs to resume, and we could add more products?

That's right, and that thing has a biggest plus point for thermostatic bimetal, because, as I'd mentioned in the last question, that our real growth for bimetal actually can come from the US market. Because we already have a decent footprint in Europe and Asia.

We can't target China for obvious reasons. Some of the other markets in the world are serviced by these areas; they don't manufacture too much of this themselves.

Where we can really get business and this switchgear market is controlled by five or six large players who are already our customers. There is no major switchgear manufacturer that uses thermostatic bimetal and is not already buying from us.

We already have those customers. It's just that we wanted a higher market share in the US and that development is what got stalled.

What we are also considering, and not just because of tariffs, is to see if we can have a facility or tie up with a partner to have a small final packaging or a final storage area in the US, because sometimes we feel that providing that additional service to a US-based customer can help us do more business there. Again, like I said, with all these tariffs and all this uncertainty, everything had come to a standstill.

Now, once maybe next month more clarity comes out in this, we can restart dialogue with our customers related to this.

Got it, sir. Again on the margins, you mentioned that these look to be sustainable, and commendable job on the margins.

You expect a similar range next year, or we can still see some improvement over these kind of numbers?

That's what the idea is. Now, unless we add lots and lots of revenue from lower-margin business, that's a different thing.

If we keep that aside, our core businesses, yes, all of our decision-making is now on the basis of how to sustain or improve profitability. We also know that the operating leverage that we get beyond a certain level specifically in shunts, our business in the last 12 or 18 months had gone below that sweet spot level.

The moment it comes back, then we see margins shooting up considerably. We know that once we stay over a certain amount of revenue from the shunts, and that's going to happen, why, because one example that I gave of this strip business to the US turning into parts, that not only increases top-line value, but also increases bottom-line value further.

That multiplier effect of the profitability is something we'll see even more clearly as that business grows. That business is just started, it's been only 2 months.

The first month was, again, because of tariff even those quantities were a little bit on the lower side. Everybody has been ordering on the negative tolerance rather than on the higher side.

Again, hopefully that'll be fixed soon.

Just one last clarification. You mentioned about the busbar and the forward integrations.

You also mentioned some PCB assemblies that were to start in Q4, is it a part of the busbar and that capex?

Technically they fall in the same category, but those opportunities were different from this and those are also under development. That business is also happening on the side.

Those are basically the same things without the busbar assembly. Certain applications don't require busbar assembly, those are for those and that's under development also.

Sorry?

We plan The ₹250-₹300 crore number you mentioned, it includes all of these forward integrations?

It includes, yes, all of the assemblies, various different types, out of which a vast majority of the value comes from the busbar-related assemblies because those are the most high-value ones. In some four-wheeler applications, like I mentioned, in two-wheelers the assembly value can be ₹2,000 to ₹3,000.

In four-wheelers it can be more than ₹5,000 in some cases. That's also a part of development happening as of now.

Hello, am I audible?

Yeah. Congratulations on a great set of numbers this quarter.

I had a couple of questions. With respect to the busbar business that you're developing, I wanted to understand what is our moat or a barrier to entry in this space?

Is it a long regulatory approval process or is it a purely pricing standpoint? We are doing EB welding, EB-welded busbars, and I was reading up somewhere that this is a much more efficient process to manufacture these busbars compared to other traditional mechanical methods.

Can you just throw some light on the efficiencies that we see when we use this EB welding method compared to other methods?

Yeah. Specifically when we talk about assemblies related to these EB-welded busbars, of course the biggest barrier to entry is the EB welding itself.

Now, like I was mentioning earlier, in strip EB welding is not something that's done by too many manufacturers across the world. In India nobody else does it.

Now, having said that doesn't mean that it's not possible for somebody else to do it or they can't get into it, but we do have a major advantage when it comes to the technical know-how of EB welding. The reason is that we have been involved in EB welding for more than nearly 30 30-plus years or so, because we used to make EB-welded components for the color picture tube industry in the mid-'90s.

We do have an advantage of technical know-how, even if a new entrant or a new player came in, so that becomes basically the barrier to entry in this business. Of course, as you mentioned, just like normal resistors or just like even normal copper components used in, let's say, energy meters, why are EB-welded shunts used in the first place is because the welding is so efficiently done that it does not affect the flow of current.

That's the basic principle. Now when you weld two different materials, two different conductive materials, and the weld is not good or the weld is too many gaps or it's changing the properties of that point where the weld has taken place, it will have an impact on the flow of current.

Now EB welding has minimal impact on that and yet provides a strong joint. Which means the current flow happens without damaging that area, and that is the basic principle.

Now, of course, when that happens, you are able to join two different materials, make use of their differences in resistance, and as a result get accuracy in the measuring the flow of current. Of course, then that same thing applies to busbars as well as it does to a resistor or it does to any other EB-welded component or application.

Answer is very simple: it's just a complicated process to do.

Okay. Another question I had was last time you had mentioned that you were entering certain new product verticals in the electronics application space.

Can you tell us if there's been any progress on that front or just throw some light on which products are we planning to expand in and which areas do they fall in and what's our moats over there?

Right. There are certain types of automotive fuses that we are working on and we're working with the possibility of looking at getting that technology from another company, a foreign company, or We are open to the idea of acquiring that technology or the company.

We're looking at various different types of components in the automotive fuse space. Why that is connected to us, obviously a lot of the resistors that we're making are also used for automotive applications, but these fuses are of a very different type.

They are not the typical commodity-type fuses that you see in automobiles. These are used in separate applications, like for example, it's used in the power window assembly or the tailgate assembly, and those little fuses that are used are basically two strips of copper with a different material in between that has a lower melting point.

When that component is overheated, that lower melting point material just melts and breaks open that joint, and hence the fuse has done its job by stopping the flow of current. What we are trying to work on is various applications like that to see if we can incorporate EB welding there, and the results are good.

That is of course one area we're working on because it's also related to what we have. Alongside that, we're looking at certain other components that it's complementary in nature in some way or the other.

We're looking at certain automotive inductors that we're still assessing the business, the market. Alongside that, we have a few more opportunities which we have to go further into at this point, but we are analyzing them, but these are some of the other ones that we've gone deeper into.

Okay. A final question that I had was on the PCB assembly front.

The recent PLI schemes that have come out for these PCB components, how do you think Shivalik might benefit from these schemes and can you quantify the sort of tailwinds that you see due to these schemes?

I think Rajeev, PLI I think you would be able to...

Yeah. See, the PLI has now been converted into ECMS scheme from the central government, where we have already put our application, which is under examination, and very soon hopefully we will get the approval from the government.

Since we have already availed in the past for four years under PLI, and as far as the quantification is concerned, entirely depends on the revenue. As we mentioned that it has a potential to grow in between ₹250 to ₹300 crore.

Accordingly, we will get the ECMS grant from the government.

Good afternoon team and congratulations on a good set of numbers. My first question is just wanted to have some clarification that you mentioned this ₹250 crore revenue on a ₹20 crore capex.

Is the math clear, because this seems like a very high asset turn?

No, Bhargav, this is not probably the right way to look at it and probably doesn't sound okay. You are absolutely right in identifying that.

You see the more costly capex requirement for being able to do something like this is something we already have, and we already have further invested over the last few years into that capacity as well as capability. Now this ₹20 crores is actually more of assembly work and having an assembly line and that's why we can set it up very quickly, because a lot of our key processes equipment cannot be set up that quickly.

This is more related to that. In fact, I would say a large portion of this ₹20 crores is more related to actually having the plant in place.

That cost is probably the most. The most expensive capex involved in being able to do this is the welding and all the processes before and after the welding.

All that we already have. One can say that in a way this is like incremental capex for being able to do this additional forward integration.

Is it fair to say that you mentioned ₹75 crores revenue next year and in 3 years ₹250 crores, for that the current assembly plant in Pune, can it cater to that ₹250 crores or you need more capex?

No, it should be able to what we have in hand, but we also are looking at if we can find certain, in the previous question we were talking about certain other electronics opportunities that we are also exploring, some are related, some are not. If we can club everything together and add it on to the plant in Pune instead of spreading into another third location, what we had in mind because of the better ecosystem for electronics over there compared to let's say Solan, if we can add all of those things, then maybe in year two, while we are running this various assembly businesses out of there, maybe we can set up a new facility and add those other things as well.

That part we've left open depending on all the other opportunities and how they pan out and whether it makes sense for us to have them geographically in that region.

Secondly, sir, now that the US tariff is likely to reduce post March, is it fair to say that you will again not shift back to exporting strips versus components? That's a fair understanding, right?

No, see, what happens is when it comes to thermostatic bimetal, even when it comes to copper, both the moment we supply strip, they fall in the stainless steel or the copper category. Those have a tariff of 50% as it is.

Section 232. 232.

If we don't supply components, strip is out of question anyway.

Sure.

That's why I was saying earlier that, in a way it's actually worked well for us, that, wherever we had the opportunity to convert to components or start that development, that has happened faster or at least started faster.

This rest of Asia which was increasing, is it fair to say that that rest of Asia increase was on account of US tariff, and now that tariff has reduced, the rest of Asia growth may come off and US growth may increase? Is that understanding correct or?

There's no connection. We'll see an increase or restoration of the US business hopefully, but the Asian market will behave on its own.

It's not related in our case, at least for our products it's not related.

Okay. It wasn't the case that instead of exporting to US you were exporting to Asia on the calling of Vishay telling you to do that?

It wasn't that?

No. No, there's a different idea behind that.

Now with Vishay, we also have a white-label agreement to supply directly to some of its customers. That development was already happening before the tariffs.

The decision behind that was more logistic-related rather than tariffs. Now tariffs actually accelerated that development, what was supposed to happen in a 18-month period it sped up and it became faster, the developments, because now since that was anyway being planned to be sent directly to a customer, then why bring it to the US and pay this 50%?

Those developments actually became much faster as a result. This part of the plan of this white-label agreement was before the tariffs, before even the initial tariff idea it came around, even before that it had started.

Yeah. Am I audible?

Thanks for giving me the opportunity and congratulations for a good set of numbers after many [muted?] quarters.

As we have seen that prior to the disruption of the tariffs, we were guiding towards 12% to 15% of the growth. Now that somewhat of the tariff disruption is coming down, are we looking at FY27 again at a 15% to 20% 12% to 15% of growth?

As we are forward integrating and we are moving towards, we can assume that our volumes will come down a little bit, but our price realization will go up. How much will be the contribution from the volume side in our revenue growth, and how much will be the realization growth with respect to revenue?

I think Rajeev, if you can...

Okay. What I understand, because maybe a bit connection problem from their side.

Regarding the volume and value growth in context of US market, if you see since we are converting a strip into components, it's very hard to say or count compared with the previous numbers, because realization will be more due to supply in component form. Yes, the growth in volume side for both the product will be there, along with the realization will be more in context of value growth.

Hypothetically, if we are growing 5% in volume growth, then there will be at least 12% to 15% in realization form growth.

Okay. That's good for understanding.

My first question on guidance, prior to this tariff disruption, we were guiding towards 12% to 15% of growth. Now going forward, let's say in FY27, FY28, are we reiterating that guidance, because now a lot of the headwinds have come off?

Of course. Before that, for the whole year, our guidance was in between 10% to 12%.

Somehow, due to this tariffs and the geopolitical issue, we are around 9% as of now, which is near to 10%. Somehow we are maintaining our commitment to the market.

Here on, we are estimating it should be at least better than whatever we have delivered so far in 9 months.

Thank you, and all the very best.

Thank you for the opportunity. A couple of questions from my side, more likely confirmative ones.

Firstly, we've given volume growth guidance of about 4% to 5% for the year. This 9 months, we are already 3% down.

Would we be able to achieve some bit of it? Secondly, if you could quantify the share of components versus parts in the revenue mix for this particular quarter vis-a-vis the previous one and Q3 FY25?

Lastly, just wanted a confirmation of what you've said in this call and the previous call. PCB assembly revenue for FY27 you said close to about ₹50-₹55-odd crore.

This particular concall, you've said busbar plus PCB the total forward integration would be at about ₹70 to ₹75 crore for FY27. EBITDA margins for PCB you've said it could go maximum to 17% to 18% on the lower side.

Busbar you've said it would be probably 10% lower than what is the normal margin, so that would be at about 12%, 13%. Is my understanding correct?

I'm done with my questions.

Yeah. As far as the total volume versus value is concerned, if you see in the 9 months, the total volume has grown by 3% compared to the previous 9 months.

Even quarter-on-quarter, you can see or product-wise you can see, the shunt has grown by almost 9.5%, whereas bimetal has grown by 5% in volume terms. We have seen a committed growth, which was estimated initially in the beginning of the year to grow in the range of 10% to 12%, and somehow we have achieved in the range of 9%.

The second question was regarding your component and strip. Currently we are supplying as a company around 36%, 37% in strip form and rest in the component form overall.

Third was your question regarding to maintain the EBITDA margin. Currently we are in the range of 23% to 26%, and after forward integrated products, since the product will give a lower EBITDA compared to the current organic product, but overall the company's EBITDA will be in the range of 23% to 25% as we will grow in volume terms for the assembly business.

In fact, if you see, the incremental cost will be lower than what we can maintain at least at EBITDA level. Overall, the company's EBITDA would be in the range of 23%

to 25%. Got it, sir, fine.

That's helpful.

Yeah. Actually, I was just going through the presentation.

I had a look on our net working capital days, which have grown as high as almost from 250, 260 days. Just wanted to understand what measures are we taking on that front to bring it to a more controllable kind of a number, because 250, 260 net working capital days is too high.

In this quarter, you see, sometimes when you're ordering, then you're getting material in time. This quarter, the consignment should land in January has already landed in December, due to which there is a certain increase in inventory days.

Parallelly, since we are growing around 9% in revenue, based on which our collection period has increased almost by 10 days, which is under 90 days, but still has increased compared to the previous 9 months. As far as the corrective action is concerned, for raw material side, we are in the process of developing three or four domestic supplier, which will eventually reduce a certain days, not the complete, maybe under 180 days or 200 days.

On the other side, I am also taking some precautions for the collections from customer, where we are having some tripartite agreement with financial institution to get the upfront payment where we are exceeding on and above 90 days payment term. These are the two measures we are considering, and based on which at the quarter ended March '26, we'd be able to get this working capital in the range of the previous year's numbers.

Understood.

Hi, am I audible?

Thanks for the opportunity. Congratulations for a good set of numbers.

Sir, I just wanted to know that we are hearing a lot of traction in the data center segment, which in your presentation you mention as one of the areas for end applications. If you could talk a bit of what kind of opportunities if at all you're seeing emerging?

Also the break-up of your revenue end sector-wise, like how much is going towards smart meters or EVs if you have that?

I think see, with data centers, sometimes it's very difficult for us to analyze. Starting with let's say EVs or smart meters are very custom-made to the specific application, it's easy for us to classify that as the end application.

When it comes to data centers and the general increase in demand for these products, including even thermostatic bimetal because of increase in demand for switchgear, we don't know because these are some general application energy storage devices as well as some general application switchgear which are both being utilized for this. It's very difficult for us to specify because it's not a unique design to its application.

Yes, when it comes to smart meters and when it comes to automotive resistors, that we know. I think that exact break-up Rajeev, if you can just break up the revenue that we have from energy meters as well as from automotive shunts as well as from non-automotive shunts.

In broader category, for both the products, thermostatic bimetal and shunt, in thermostatic bimetal, switchgear industry constitutes around 80% of our supplies. Rest is between automotive, energy meters, and some home appliances.

Similarly, in resistor business, around 60% goes to automotive and 35% goes to energy meters. Rest is in between home appliances, gas meters, and others.

Sir, ex of the assembly business, what sort of growth can we possibly see in our base manufacturing business in FY27? A rough range would be helpful.

Prateek, thermostatic bimetal, like I had mentioned earlier, it's a little bit difficult for us to say at this time because there were too many things related to the US market. We do expect, we have an indication from our customers for India and certain other markets that we do expect to see a 8% to 10% kind of a growth in that area.

Where we're really expecting growth in our baseline business non-unrelated to any forward integration or new product types, we do expect to see a much larger growth in the shunt business, because, like I mentioned, Vishay being one of them, and there are two, three other customers, including Denso from Japan, and there are three or four other Japanese customers as well, where commercial business has already begun. In some cases, it's been a few months; in some cases, it's starting now or maybe next quarter.

When we add all of that, we hope and we expect that if all of those things work well and those businesses as per the forecast that we have, we should be able to add to our shunt baseline business anywhere between a 13%, 14% to a 18%, 19% kind of a number. That expectation is what we are working with, and that's the kind of indication we have from these new developments.

Great. Thanks a lot, sir.

Hi. Just one follow-up question.

Sir, when you mentioned that 65% is raw material cost in that automotive busbar, I would presume that that would be coming from the mother factory, right?

Some part of it, yes, because some part will be other components as well, and some portion of it would be our own components that we have manufactured. We're taking that as a whole value.

Lastly, any impact of this raw material inflation that we are seeing across your key raw materials or we'll be able to pass it on?

Our pricing structure is such that all of the raw material pricing is pass-through, because it can go either ways. Right now it's seen an upswing, but it can go downwards as well.

The bigger impact that we've had is in our third product vertical, which is silver contacts. Silver contacts had more exposure in recent months because you may be aware that for that particular business, we are in the process of moving to a new factory.

That factory is already partially under production, but because it was running on full capacity, it's a complicated process to move to a new location. Obviously, we had slightly more inventory lying with us and we had more exposure because of this transit, and that's exactly the time when silver actually went a little bit too high.

We do have certain instances where this can have an impact, but under most circumstances, it has no impact directly on our margins. Surely there'll be some increase in top line that'll show up as a result of that.

Thank you everybody for joining us today. The key takeaway is that we are growing steadily while improving the quality of earnings, and we remain focused on strengthening the core and moving up the value chain in a measured way, with the Pune initiative being a clear step in that direction.

Thank you for being a part of Shivalik's growth journey as we enter this next phase. Wishing you all a pleasant evening ahead.

Thank you, everyone.