Shivalik Bimetal Q2 Profit Rises 40 per cent, Board Proposes 2:1 Bonus Issue

Shivalik Bimetal Controls is expanding from precision materials into higher-value electrical components and assemblies for electrification, smart-metering and automotive applications. The company has now reported a strong September-quarter performance while also proposing a 2:1 Bonus issue and declaring an interim Dividend.

Consolidated revenue from operations rose 44 per cent YoY to Rs 197.79 crore for the quarter ended September 30, 2026. Profit after Tax (PAT) increased nearly 40 per cent to Rs 34.75 crore, while profit before tax climbed to Rs 46.80 crore from Rs 32.44 crore a year earlier. Revenue was also higher than Rs 182.20 crore in the June quarter, while PAT rose from Rs 33.12 crore on a QoQ basis.

Basic and diluted earnings per share stood at Rs 5.82 for the quarter, against Rs 4.27 in the September 2025 quarter. For the first half of FY27, consolidated revenue reached Rs 379.98 crore and PAT was Rs 67.87 crore, compared with Rs 274.00 crore and Rs 47.63 crore, respectively, in the corresponding prior-year period.

The board declared an interim dividend of Rs 2 per equity share of face value Rs 2 each, involving a payout of Rs 11.52 crore. The record date is November 13, 2026, and payment is due on or before December 3, 2026.

Separately, the board approved a proposed bonus issue of two equity shares for every one fully paid-up share held on the record date, subject to shareholder approval. The proposal would capitalise up to Rs 23.04 crore from retained earnings and increase the paid-up share capital to Rs 34.56 crore from Rs 11.52 crore. Shareholders will consider the proposal and an increase in authorised share capital to Rs 40 crore at an extraordinary general meeting on December 16, 2026.

As of 2:47 pm on November 4, 2026, Shivalik Bimetal Controls was trading at Rs 1,063.50, up 0.52 per cent from the previous close. The stock was about 8 per cent below its 52-week high of Rs 1,155.40, while its one-year gain of 115.97 per cent contrasts with a 5.73 per cent decline in the BSE 500 over the same period. The company's market capitalisation stood at Rs 6,094.24 crore.

What This Means for Investors

The earnings performance supports the company's strategy of raising value addition through finished shunt resistors, electrical contacts and assembly-led products. Revenue and profit growth remained strong on both YoY and QoQ bases, extending the momentum seen in the June quarter. The interim dividend signals a willingness to share cash generation, while the bonus issue increases the number of shares without changing the underlying economic value of shareholder holdings.

The principal business watchpoint remains execution in newer cell-contacting, printed circuit board and busbar assembly programmes. These products can deepen the company's role in electric vehicle and power-management systems, but their ramp-up depends on customer qualifications and production schedules. At 57.45 times trailing twelve-month earnings, the market valuation already reflects expectations of sustained growth and continued mix improvement. Working-capital discipline also remains relevant after receivables and inventories absorbed cash in FY26.

Disclaimer: The article is for informational purposes only and not investment advice.