Shares of Vilas Transcore Limited (NSE:VILAS) witnessed selling pressure in recent sessions, with the stock trading below its 51-day EMA near ₹455, indicating a weak near-term technical structure after recent volatility.
Despite the correction, the company delivered strong FY26 operational growth supported by rising transformer industry demand, capacity expansion, and new product additions across the power transmission ecosystem.
Data Source: Company Filing; Image source: © 2026 Krish Capital Pty. Ltd., Analysis: Kalkine Group
Strong FY26 Revenue and Volume Growth
Vilas Transcore reported FY26 revenue from operations of ₹460.7 crore, reflecting 30% YoY growth compared to ₹353.1 crore in FY25. PAT increased 15% YoY to ₹39.6 crore, while EBITDA rose 15% YoY to ₹51.5 crore.
The company achieved nearly 65% YoY volume growth during FY26, supported by strong demand, optimal capacity utilisation, and contribution from newly added CRGO and nanocrystalline core capacities.
However, margins moderated during the year due to:
- Initial operating expenses related to new facilities
- Ramp-up costs of newly commissioned units
- Decline in CRGO steel prices to around ₹180–185 per kg
FY26 EBITDA margin stood at 11.2% compared to 12.7% in FY25, while PAT margin moderated to 8.6% from 9.8% in FY25.
Capacity Expansion and Product Diversification Driving Growth
The company continues expanding aggressively to capture rising opportunities in India’s transformer and power transmission sector.
Key expansion initiatives include:
- CRGO Lamination capacity expansion from 12,000 MTPA to 36,000 MTPA
- Commercialisation of radiator manufacturing plant
- Entry into copper conductors segment
- Nanocrystalline core facility ramp-up
- Expansion into high-voltage bushings segment
Management stated that:
- Copper conductor trial production is expected by September 2026
- Revenue contribution from the segment is likely from H2FY27
- Radiator manufacturing has already commenced commercial operations
The company also incorporated a new entity for manufacturing high-voltage bushings ranging from 12kV to 400kV, targeting a high-entry-barrier and technology-driven segment.
FY27 Outlook Remains Strong
Management remains optimistic on sector demand and guided for:
- 45–50% volume growth
- 40–50% revenue growth
- Stable EBITDA and PAT margins in FY27
The company expects strong industry tailwinds from:
- India’s transmission and distribution capex cycle
- Renewable energy integration
- Grid modernisation
- Rising transformer demand globally and domestically
Strong Positioning in India’s Power Infrastructure Theme
Vilas Transcore operates as a key supplier of transformer components including:
- CRGO laminations
- Transformer cores
- Radiators
- Nanocrystalline cores
- Copper conductors
The company supplies to major transformer manufacturers and exports products to Gulf countries, Europe, and Canada.
Management highlighted that India’s power transmission sector remains in a multi-year growth cycle supported by:
- ₹9 lakh crore T&D capex opportunity till 2032
- Rising renewable energy penetration
- Expansion in transmission infrastructure
- Strong transformer demand globally
Technical Summary
The stock remains volatile and continues trading below its 51-day EMA, indicating cautious near-term sentiment. Immediate support is visible near ₹400, while resistance remains around ₹455–480. Sustaining above the ₹400 zone may help improve sentiment, whereas continued weakness could keep the stock under pressure in the near term.
Chart by TradingView
Conclusion
Vilas Transcore delivered strong FY26 operational performance supported by robust demand in the transformer and power transmission sector. The company’s aggressive capacity expansion, new product additions, and entry into higher-value segments continue to strengthen its long-term growth outlook.
However, near-term margin pressure, raw material price volatility, and ongoing technical weakness in the stock may keep investor sentiment cautious in the short term.
FAQs
- Why is Vilas Transcore stock under pressure?
The stock is witnessing volatility and trades below key moving averages despite strong operational growth.
- What was Vilas Transcore’s FY26 revenue growth?
The company reported 30% YoY revenue growth with FY26 revenue reaching ₹460.7 crore.
- What are Vilas Transcore’s major expansion plans?
The company is expanding into radiators, copper conductors, nanocrystalline cores, and high-voltage bushings.