Shivalik Bimetals: Can This Small Engineering Company Turn Into A Battery Components Multibagger?

Synopsis: Shivalik Bimetals is expanding beyond its traditional business into higher-value battery and precision electrical components. With new products, improving margins and a stronger position in fast-growing applications, the company might be entering its next phase of growth. But can this small engineering company turn into a battery components multibagger? 

India’s manufacturing story is slowly moving beyond large factories, big machines and traditional industrial products. A new layer of growth is coming from small but critical components that sit inside electric vehicles, smart meters, battery systems, switchgear, energy storage products and other electrical equipment. These parts may look small, but without them, the larger system cannot measure current, manage heat, switch power safely or distribute electricity properly.

This is where Shivalik Bimetal Controls enters the picture. The company is not a battery manufacturer, and it does not make electric vehicles. But it makes precision components that are used inside battery management systems, smart meters, electrical devices and power systems. That is why the market is slowly looking at Shivalik as a small engineering company that could benefit from the rise of battery systems, EVs and wider electrification.

What Does Shivalik Bimetals Actually Do?

Shivalik is a precision engineering company. In simple words, it makes small metal and electrical parts that help bigger electrical systems work safely and accurately.

Its main products are shunt resistors, thermostatic bimetals, electrical contacts, bus bar connectors and PCBA assemblies. Shunt resistors are used to measure current. Think of them like a speedometer for electricity. If current is flowing inside an EV battery pack, smart meter or industrial system, a shunt helps measure how much electricity is moving.

Thermostatic bimetals work differently. They react to heat. When temperature changes, these metal strips bend in a predictable way. This makes them useful in switchgear, thermostats, irons, geysers, sensors and electrical protection devices.

Electrical contacts are the touch points inside switches, relays and circuit breakers. They help electricity turn on and off safely. Bus bars and PCBA assemblies are newer focus areas. Bus bars carry power, while PCBAs help with control, sensing and communication inside electrical systems. So the company does not sell finished EVs, batteries or smart meters. It sells important components that go inside them.

Why Battery Components Matters

Shivalik is not a battery cell company. It does not make lithium cells, anodes, cathodes, electrolytes or battery packs. But many of its products are closely linked to battery systems. Shunts are used in battery management systems to measure current. Bus bars are used to distribute power inside battery packs and electrical systems. PCBAs help control and monitor electrical functions. CCS assemblies and bus bar solutions are also linked to EV battery packs and power distribution.

This is why the company’s new direction is important. The older business was more about bimetals and precision metal products. The future growth direction is moving more towards shunts, bus bars, PCBA and assemblies. These are more relevant for EVs, battery systems, energy storage and other high-current electrical applications.

The company’s Pune facility is central to this shift. It is being set up for PCBA and bus bar assemblies for automotive and electrification-led applications. This means Shivalik wants to move from selling individual components to selling more complete solutions to OEMs and Tier-1 customers.

What Is Happening Financially?

FY26 was a good year for Shivalik, but the story is not as simple as just high revenue growth. Consolidated revenue grew 12.3 percent to Rs. 570.9 crore. EBITDA grew 26 percent to Rs. 130.7 crore, while PAT grew 24.8 percent to Rs. 95.8 crore. EBITDA margin expanded by around 250 basis points to 22.9 percent. The important point is that profit growth was stronger than revenue growth. This happened because of better realisations, improved product mix, operating leverage and cost control.

On a standalone basis, FY26 revenue stood at Rs. 461.95 crore, up 5.66 percent from Rs. 437.21 crore in FY25. Standalone EBITDA was Rs. 112.37 crore, up 15.01 percent, and PAT was Rs. 81.8 crore, up 12.94 percent. So even though standalone revenue growth was modest, profitability improved meaningfully.

The segment numbers also show the transition. In FY26, Shunt revenue was Rs. 230.68 crore, up 8.62 percent. Bimetal revenue was Rs. 231.25 crore, up 2.85 percent. This means Shunts have become almost as large as the legacy bimetal business. In Q4 FY26, Shunts contributed Rs. 59.23 crore, while Bimetals contributed Rs. 57.48 crore. This is important because the company is no longer only a bimetal story. Shunts have become a major growth pillar.

Why Management Is Moving Up The Value Chain

The biggest theme in Shivalik’s filings is value addition. Earlier, the company supplied more material in strip form. That is a lower value-added product. Now, management wants to supply more finished components and assemblies. This improves realisation and makes the company more relevant to customers.

Management said that in shunts, the share of component supply increased from around 55 percent to 65 percent year-on-year. This improved realisation by around 10-12 percent per kg. That is the core of the margin improvement story.

The same thinking is visible in the new Pune facility. Instead of selling only a shunt or a bus bar, the company wants to combine bus bars, connectors, PCBAs and other parts into ready-to-use assemblies. This can increase wallet share with customers and improve long-term revenue visibility.

This is also why the company is talking about OEMs and Tier-1 customers. If Shivalik gets designed into a customer’s product, the relationship can become sticky. These components require precision, testing and approvals. Customers do not easily change suppliers if the component is critical to safety or accuracy.

What Is Going Right?

Several things are working in Shivalik’s favour. First, the product mix is improving. The company is selling more value-added components instead of only basic strip material. That is helping margins even when volumes are not growing strongly.

Second, smart meters are becoming a meaningful growth area. Management said smart meter-related revenue nearly doubled in FY26, from around Rs. 30-40 crore earlier to over Rs. 75-80 crore. Shunts and electrical contacts both benefit from this opportunity.

Third, Shunts have become a major business. They now contribute around half of the revenue. This gives Shivalik exposure to current sensing applications across smart meters, EVs, battery management, energy storage and industrial systems.

Fourth, the balance sheet is strong. The company has cash and cash equivalents of Rs. 105 crore on a consolidated basis against total borrowings of Rs. 59 crore. Net worth increased to Rs. 481 crore in FY26. This gives the company room to invest without taking large debt.

Fifth, the company has a global footprint. Exports made up around 57 percent of FY26 sales, and the company serves customers over 38+ countries. This reduces dependence on only one domestic market.

What Can Go Wrong?

The biggest risk is that volumes are not very strong. In Q4 FY26, total volumes declined 14.23 percent year-on-year. For the full year, total volumes declined 0.60 percent. Shunt volume declined 2.23 percent, while Bimetal volume increased only 0.82 percent.

This means the current story is more about better realisation and better mix than strong volume growth. That is positive for margins, but over the long term, the company will also need healthy volume growth.

The second issue is weakness in the Americas. Management said the Americas were soft during FY26, although they are seeing early signs of normalisation. US tariffs and customer inventory corrections affected orders. The company has not necessarily lost business, but some customers reduced orders and forecasts.

The third issue is domestic bimetal demand. Management indicated that domestic bimetal growth has been relatively flat because the specific switchgear and MCB markets where the company supplies have not grown as strongly as expected.

The fourth risk is execution in new businesses. Bus bars, PCBA and assemblies are still in the ramp-up stage. Management expects the new standalone Pune unit to eventually generate around Rs. 250-350 crore of revenue. However, this will depend on customer approvals, production ramp-up and successful conversion of pilot projects into commercial orders. 

There is also a margin point. New assembly products may have lower gross margins than the company’s existing core products. So even if revenue grows, investors will need to watch whether overall profitability remains strong.

Can It Become A Battery Components Multibagger?

Shivalik’s story is not that it is already a pure battery components company. That would be incorrect. Today, its revenue still comes from a mix of shunts, bimetals, electrical contacts, smart meters, switchgear, industrial electronics, automotive and export markets.

But the direction is clear. The company is moving towards products that are more relevant for battery systems, EVs and high-current electrical applications. Shunts measure current. Bus bars distribute power. PCBAs help control and monitor systems. Assemblies bring these products together into a more complete solution.

This is why the battery components angle is interesting. The current business gives the company cash flows and credibility. The new products give it a larger future opportunity. However, becoming “multibagger” will depend on execution. Shivalik will need to scale the Pune facility, grow the bus bar and PCBA business, recover in export markets, maintain margins and convert pilot projects into commercial revenue.

The company has some clear strengths: niche products, strong customer relationships, technical capabilities, improving margins and a healthy balance sheet. But it also has clear risks: weak volumes, dependence on customer ramp-ups, US market uncertainty and execution risk in new assemblies.

So the simple conclusion is that Shivalik is not a battery company today. But it is trying to become a more important supplier of precision components used in battery systems and broader electrification products. If management executes this transition well, the company could become much bigger than its current size. But investors will need to track whether the battery components story moves from promise to actual revenue growth.

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