Waya initiates coverage on Shilchar Technologies Ltd. with a BUY recommendation. Waya expects an upside of 39% in 1 year and sets a target price of ₹5,800.

Shilchar Technologies is a high-margin, debt-free transformer manufacturer supplying to solar, renewable, utility, industrial and export markets. The company has an order book of ~₹300 crore and is doubling capacity from 7,500 MVA to 14,000 MVA through a ₹90 crore capex.

Shilchar has sound financials with market-leading profitability of 71% RoCE, 42% RoE and EBITDA margin above 31%. Strong H1 FY26 results (₹330 crore revenue, +39% YoY; ₹87 crore PAT, +54% YoY) support a robust growth outlook.

We believe Shilchar is a great company with revenue expected to grow from ₹623 crore in FY25 to ₹1,300 crore by FY28E, driven by capacity expansion, strong export traction and rising renewable-energy demand.