AI-generated · cited to primary sources · not investment advice
Shivalik Bimetal (513097) Nov 2025 Filing Analysis
Does management do what it says?
The company has successfully expanded its EBITDA margins beyond the 22-23% range, reaching 23% in the current quarter with an aspirational target to improve it by another 200 basis points over three years. (4 exceeded across 4 tracked commitments)
“Yes. As we mentioned last time, Q4 seems to be the time where we will start seeing some revenue generation from the PCBA assemblies, and we see that this has the potential to give us, at least in the near term – that is, next financial year – a topline of about ₹50–70 crore.”
The capitalization of the SEPPL subsidiary (contact business) capex is now expected by the end of December 2025, representing a minor shift from the Q2 FY26 target. (1 revised, 3 met across 4 tracked commitments)
“This capex will be capitalized by the end of December, which is why it is currently under CWIP.”
The company is expanding its global presence through the establishment of a wholly owned subsidiary in Italy.
“As part of our growth strategy, we look forward to expanding our Global presence, and are pleased to share the addition of ‘Shivalik Bimetals Europe SRL’ in Italy, established during FY25 as our wholly owned subsidiary (WOS).”
Management expects EBITDA margin to improve further for a few more quarters before plateauing. (+3 more commitments)
“We expect that before this margin expansion plateaus, we will continue to see, for a few more quarters, this percentage improving further because as we speak these things are being converted.”
Management expects momentum to stabilize and inventories to return to appropriate levels through the second half of the year. (+1 more commitment)
“As these customers rebalance and resume normal ordering, we expect our momentum to stabilise and inventories to return to more appropriate levels through the second half of the year.”
See the full cited Management analysis of Shivalik Bimetal
Where does growth come from?
Traction in the Indian EV market is accelerating, particularly in the two-wheeler segment. Management identifies India as the biggest growth market for automotive shunts, offsetting weakness in Western markets. (1 accelerating across 1 signal)
“What we are now seeing, interestingly, is that our biggest growth market for automotive shunts – whether it’s EVs or hybrids – specifically for two-wheeler EVs, is coming from India.”
Expansion is actively underway with Rs. 20 crore allocated to the SEPPL subsidiary for the contact business. The project is in the final stages of automation and land acquisition, with capitalization expected by December 2025. (3 steady, 1 new trend across 4 signals)
“out of ₹32 crore almost ₹20 crore pertains to SEPPL, which is underway for capitalisation... This capex will be capitalized by the end of December, which is why it is currently under CWIP.”
See the full cited Future Growth analysis of Shivalik Bimetal
What could break the thesis?
This risk has significantly eased. Gross margins improved by 296 basis points due to a shift toward high-value components. Management clarifies that raw material costs are a 'complete pass-through' and do not hurt margins. (1 easing)
“Raw material pricing does not really have a very strong effect on our margins, mainly because there is a complete pass-through of costs... although you will see a lower growth in the top line, you will continue to see an improvement in the bottom line.”
See the full cited Risk analysis of Shivalik Bimetal
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