What’s new

• Management set a long-term revenue target of ₹1,000 crore on the FY26 earnings call.
• FY26 revenue rose 22% to ₹109.98 crore; profit fell 11.6% to ₹6.01 crore on ₹17.14 crore capex.
• Won three institutional contracts: a defense PSU for mortar shell tapes, Indian Railways Part-1 approval, and an EMS-sector entry.

Why it matters

The ₹1,000 crore target is roughly 9x current revenue. That is an aggressive ask for a company that just posted ₹109.98 crore in sales. The defense and railway wins give the number a partial anchor, but the gap to close is enormous.

What we’re watching

• Whether capacity utilization moves above the current 50-70% band in FY27.
• If the defense and railway orders translate into recurring revenue or stay one-off.
• Operating margins hitting the double-digit target versus the FY26 margin compression.

The full read

Srivasavi Adhesive Tapes wants to be a ₹1,000 crore company. It currently does ₹109.98 crore in revenue. FY26 sales grew 22%, but profit fell 11.6% to ₹6.01 crore because the company spent ₹17.14 crore on capacity it isn't using yet. Utilization sits at 50-70%. The catalysts for the next leg are three institutional wins: a defense PSU contract for mortar shell adhesive tapes, Indian Railways Part-1 approval, and a new entry into the EMS sector. Management says these point to double-digit operating margins in FY27 as the plants fill up. The contracts are real. The target is real. The distance between them is 9x. Whether those orders become repeat business or stay one-offs is what separates the target from a wish.

Primary source: NSE