Vilas Transcore triples CRGO capacity to 36,000 MT, targets ₹750 cr FY26 revenue
Unit 3 commissioned; radiators and nano-crystalline add margin lift even as CRGO price drop pressures near-term profitability.
What's new
- CRGO lamination capacity tripled from 12,000 to 36,000 MT per annum.
- FY26 revenue target of ₹750 cr reaffirmed with 30,000 MT CRGO sales.
- Radiators commercialized, nano-crystalline cores target ₹25 cr in FY26.
- PGCIL approval expected June 2026, unlocking institutional procurement.
Themes from the call
Demand
India power sector investments accelerating; strong transformer component demand visibility driven by grid expansion and renewable energy.
Margins
CRGO price down 20-25% since March compresses margins; new products (radiators 18%, nano-crystalline 25-30%) improve blended profitability.
Capital allocation
Capex funded from internal profits and IPO proceeds; working capital efficiency improves with same WC supporting higher sales.
Guidance watch
- FY26 revenue target ₹750 cr reaffirmed; Q1 weak but Q2-Q4 recovery expected.
- FY27 CRGO volume growth 45-50%, revenue growth 40-45% guided.
- PGCIL approval expected June 2026; no near-term dividend guided.
Risk flags
- CRGO price volatility (down 20-25%) hurting margins; input cost risk remains.
- PGCIL approval delay could slow institutional market access.
- Radiator ramp slower than initial plan; new product execution risk.
- High inventory (2 months sales) due to import dependency; working capital tied up.
Key quotes
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"With CRGO lamination capacity moving from 12,000 metric tonnes to 36,000 metric tonnes per annum, we are targeting approximately 45-50% volume growth in FY27."
— Nilesh J. Patel, Chairman and Managing Director
The brief
Vilas Transcore has tripled its CRGO lamination capacity to 36,000 MT per annum with the commissioning of Unit 3 on the Delhi-Mumbai corridor. The expansion is the centerpiece of a plan to push FY26 revenue to ₹750 crore from ₹461 crore in FY25. New products—radiators (18% margin), nano-crystalline cores (25-30%), and copper conductors—are now in commercial production, promising a richer portfolio mix.
But the near-term picture is not all smooth. CRGO prices have fallen 20-25% since March, compressing the core lamination margin to 12-13%. Management acknowledged the pain: H2 FY25 PAT margin dropped from 9.67% to 8.58% partly due to this commodity decline, plus one-off Chinese mill commitments and new plant setup costs. The Q1 FY26 slowdown in orders added to the caution.
Guidance remains specific and confident. Chairman Nilesh J. Patel targets 30,000 MT CRGO sales this fiscal and 45-50% volume growth in FY27. The PGCIL approval, expected next month after an end-May inspection, is the next major catalyst—it unlocks institutional procurement and multinational OEM channels. Working capital, already efficient (same WC supporting ₹461 cr as earlier supported ₹360 cr), is not expected to cap growth.
The risk matrix centres on execution: radiator ramp has been slower than planned, nano-crystalline customer names remain confidential, and CRGO supply from alternative sources (Russia, Poland, Germany) comes at a cost premium. Anti-dumping duties on Chinese mills, expected in 3-4 months, could tighten supply but also increase costs.
On balance, Vilas has capacity and demand tailwinds. The credible part of the story is volume growth. The open question is margin resilience.
Vilas Transcore's capacity surge is real; margin trajectory now depends on product mix and PGCIL unlock.