What’s new

• Triples CRGO lamination capacity to 36,000 metric tonnes per annum.
• Targets ₹750 cr revenue for FY26, up 62% from ₹461 cr in FY25.
• H2 margin compression from 20-25% CRGO price drop; new products in radiators and nano-crystalline cores.

Why it matters

The aggressive capacity expansion and revenue target signal confidence in demand, but near-term margins face pressure from commodity volatility and expansion costs. PGCIL approval remains a key catalyst for institutional market access. At a P/E of 23.9, the stock already prices in some optimism; execution will determine whether the multiples hold.

What we’re watching

• PGCIL approval expected in June — could open up institutional market.
• Margin trend in H1 FY26 as expansion costs hit.
• Volume growth traction toward 45-50% target for FY27.

The full read

Vilas Transcore reported FY25 revenue of ₹461 crore and PAT of ₹40 crore, and used its June concall to lay out an ambitious growth roadmap: triple CRGO capacity to 36,000 MT, target ₹750 crore in FY26 revenue (up 62% ), and push 45-50% volume growth in FY27. The aspiration is real. The question is how margins hold up. H2 margin compression came from a 20-25% drop in CRGO commodity prices — a headwind that may persist. Expansion costs from tripling capacity will add near-term pressure. Management's cautious optimism reflects that trade-off. The key catalyst is PGCIL approval, inspection done, expected in June. That would open the door to institutional supply contracts. At a trailing P/E of 23.9 and low debt (0.04 D/E), the stock is not cheap, but the balance sheet provides flexibility. This is a roll-the-sleeves year: capacity, customers, and cost control.

Primary source: NSE