Vilas Transcore targets ₹750 cr in FY26, triples CRGO capacity
FY25 revenue of ₹461 cr and PAT of ₹40 cr form the base; management eyes 62% growth with capacity tripling to 36,000 MT and 45-50% volume growth in FY27. PGCIL approval is the near-term catalyst.
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 this 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.
Questions answered
- What drove the margin compression in H2 FY25?
- A 20-25% drop in CRGO commodity prices hurt margins. Management expects near-term pressure from expansion costs as capacity triples.
- How credible is the ₹750 cr revenue target?
- It implies 62% growth from FY25's ₹461 cr. The company plans to triple capacity and launch new products, but the call is backward-looking and summarizes already communicated guidance, so execution is key.
- What is the PGCIL approval and why does it matter?
- PGCIL approval would allow Vilas to supply to Power Grid Corporation, a major institutional buyer. Inspection is complete and approval is expected in June 2026. It could be a catalyst for market access.
- What new products are being launched?
- Radiators and nano-crystalline cores, diversifying beyond CRGO laminations. This could open new revenue streams.
- Is the company carrying a lot of debt?
- No, debt/equity is just 0.04, indicating low leverage despite the planned capacity expansion.
- How does FY25 PAT of ₹40 cr compare to targets?
- FY25 PAT was ₹40 cr on ₹461 cr revenue, a margin of ~8.7%. The FY26 target revenue of ₹750 cr would require scaling operations efficiently to maintain or improve margins.