Shilchar Technologies Posts FY26 Net Profit of ₹15,816.11 Lakhs, Recommends ₹12.50 Dividend

Shilchar Technologies Limited's Board of Directors, at their meeting held on May 5, 2026, approved the audited standalone financial results for the quarter and financial year ended March 31, 2026. The board meeting commenced at 3:30 PM and concluded at 4:45 PM. The results were audited by statutory auditors M/s. CNK & Associates LLP, Chartered Accountants, who issued an unmodified audit opinion. The announcement was made pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

FY26 Financial Performance

Shilchar Technologies delivered a strong financial performance for the full year ended March 31, 2026. Revenue from operations grew to ₹65,193.99 lakhs from ₹62,314.75 lakhs in the previous year. Net profit for FY26 stood at ₹15,816.11 lakhs compared to ₹14,685.18 lakhs in FY25. The following table presents the key financial highlights for the year and the latest quarter:

Metric: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations (₹ Lakhs) 15,164.97 17,025.94 23,186.26 65,193.99 62,314.75 Other Income (₹ Lakhs) 666.68 607.71 458.51 2,604.62 1,647.00 Total Income (₹ Lakhs) 15,831.65 17,633.65 23,644.78 67,798.61 63,961.75 Total Expenses (₹ Lakhs) 12,084.04 11,897.31 16,176.65 46,601.70 44,224.84 Profit Before Tax (₹ Lakhs) 3,747.61 5,736.34 7,468.13 21,196.92 15,736.91 Net Profit (₹ Lakhs) 2,839.16 4,233.77 5,536.45 15,816.11 14,685.18 Total Comprehensive Income (₹ Lakhs) 2,860.73 4,231.83 5,523.32 15,831.86 14,677.42 Basic EPS (₹) 24.82 37.01 48.39 138.25 128.37 Diluted EPS (₹) 24.82 37.01 48.39 138.25 128.37

Balance Sheet Highlights

The company's total assets grew to ₹59,051.41 lakhs as at March 31, 2026, compared to ₹48,992.06 lakhs as at March 31, 2025. Total equity stood at ₹49,084.60 lakhs, comprising equity share capital of ₹1,144.02 lakhs and other equity of ₹47,940.58 lakhs. Key balance sheet items are summarised below:

Parameter: 31st March, 2026 (₹ Lakhs) 31st March, 2025 (₹ Lakhs) Property, Plant & Equipment 6,817.60 5,811.48 Investments (Current) 20,196.95 5,387.51 Trade Receivables 15,360.38 22,869.30 Cash & Cash Equivalents 2,148.32 2,981.74 Total Assets 59,051.41 48,992.06 Total Equity 49,084.60 34,682.77 Total Liabilities 9,966.81 14,309.29

Cash Flow Summary

For the year ended March 31, 2026, net cash from operating activities stood at ₹19,202.04 lakhs, a significant improvement from ₹3,956.26 lakhs in the previous year. Net cash used in investing activities was ₹16,939.47 lakhs, while net cash used in financing activities was ₹3,095.99 lakhs. Cash and cash equivalents at the end of the year were ₹2,148.32 lakhs.

Dividend and Corporate Actions

The Board of Directors recommended a final dividend of ₹12.50 per equity share of ₹10 each (125%) for FY26, subject to shareholder approval at the ensuing Annual General Meeting. This is consistent with the previous year's dividend of ₹12.50 per equity share. Additionally, based on the recommendation of the Nomination and Remuneration Committee, the board approved the re-appointment of Mr. Aashay Alay Shah as Whole Time Director with effect from November 1, 2026 to October 31, 2031, subject to shareholder approval. Mr. Aashay Alay Shah holds a Bachelor of Science in Electrical Engineering from the University of Illinois, Urbana-Champaign, USA, and a Masters in Business Administration from Cass Business School, London, UK.

Regulatory and Operational Notes

The company operates in a single business segment — Transformers & Parts. The Government of India notified the implementation of four new Labour Codes effective November 21, 2025, and the company has taken an additional charge of ₹18.29 lakhs for the quarter ended March 31, 2026, with a total charge of ₹60.54 lakhs for the full year. Notably, the equity shares of the company were listed and commenced trading on the National Stock Exchange of India Limited (NSE) with effect from November 24, 2025, following board approval on August 12, 2025. Earnings per share for previous quarters and periods have been restated to reflect the effect of bonus shares allotted in line with Ind AS 33 requirements. The official intimation was signed by Company Secretary & Compliance Officer Vishnupriya Civichan.

Shilchar Technologies Limited has disclosed to stock exchanges that it received a GST demand order from tax authorities, involving significant financial implications. The company received the order on April 1, 2026, through speed post and promptly informed BSE and NSE under regulatory compliance requirements.

GST Demand Order Details

The Joint Commissioner of Central Tax, CGST and Central Excise, Vadodara-I issued the order dated March 26, 2026. The demand stems from audit observations relating to classification issues, reconciliation of GST returns, reconciliation with financial statements, and certain procedural aspects.

Particulars: Amount (Rs.) Confirmed Tax Demand: 3,21,20,305/- Interest Confirmed: 2,13,023/- Penalty Confirmed: 50,000/- Additional Penalty Imposed: 3,18,98,805/-

Original Show Cause Notice

The original Show Cause Notice had demanded GST of Rs. 3,57,97,625/- along with interest of Rs. 2,78,699/- and penalty of Rs. 2,00,000/-. However, the final order confirmed a reduced tax demand of Rs. 3,21,20,305/- with interest of Rs. 2,13,023/- and penalty of Rs. 50,000/- under Section 74 of the CGST Act, 2017.

Company's Prior Payments

Shilchar Technologies has already made partial payments that have been appropriated in the order:

Payment Type: Amount Paid (Rs.) Tax: 1,95,851/- Interest: 1,77,297/- Penalty: 50,000/-

Legal Provisions and Penalties

The interest on the tax demand has been levied under Section 50(1)/(3) of the CGST Act, 2017, read with similar provisions of Gujarat GST Act and Section 20 of the IGST Act, 2017. The substantial penalty of Rs. 3,18,98,805/- has been imposed under Section 74 of the CGST Act, 2017.

Company's Response and Financial Impact

Based on its assessment, the company believes it has a strong case on merits and does not expect any material impact on its financial position. Shilchar Technologies is in the process of challenging the order before the First Appellate Authority, considering the entire demand erroneous under the relevant provisions of the Act.

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Regulations, providing detailed information as required under SEBI circular dated July 13, 2023.

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