Shilchar Technologies: New transformer unit on track, commissioning by April 2027
- May 7, 2026
Shilchar Technologies said that its new transformer manufacturing unit coming up in Gujarat is progressing on track and is likely to be commissioned by April 2027.
The new facility (Unit No.3) at the existing Gavasad facility in Vadodara district would have capacity of 6,500 MVA per year, taking the company’s overall capacity to 14,000 MVA.
In an investor presentation, Shilchar Technologies said that civil foundation work has been completed while pre-engineered building (PEB) works were in progress. All major production equipment has been ordered.
Prior to the new expansion plan, capacity at the Gavasad plant was enhanced on two occasions – by 3,000 MVA in 2018 and by another 3,500 MVA in August 2024 – taking cumulative capacity to 7,500 MVA from the original 1,000 MVA.
The company said that it has acquired a land bank to potentially even double capacity at Gavasad – the company’s only manufacturing site – from the enhanced level of 14,000 MVA.
Shilchar is currently focusing on manufacturing various types of transformers up to 50 MVA capacity, and up to 132kV voltage class. However, the expansion at Gavasad (Unit-3) could see the company enhancing its product line to the 220kV class.
Capacity utilization
In the ongoing fiscal year, FY27, Shilchar expects to fully utilize the existing capacity of 7,500 MVA. In FY26 and FY27, capacity utilization hovered around 78 per cent.
Exports impacted, but recovering
Uncertainty over US tariff policy during the preceding quarters impacted order intake from US customers in Q3FY26, the company said. While order inflows recovered in Q4FY26, dispatches during the quarter remained slow, owing to lower order intake in Q3FY26.
With subsequent policy amendments coupled with a robust demand outlook from US customers, both order intake and deliveries have picked up notably in Q1FY27, the company said.
A significant volume of Q4FY26 shipments were scheduled for delivery to Middle East customers in March 2026, which could not be dispatched due to the crisis in West Asia and the resulting logistical disruptions. These shipments have been deferred, not cancelled, the company reiterated, adding that dispatches to the region resumed in April 2026, and the situation has improved considerably since then.
Shilchar Technologies exports to over 25 countries across five continents. In FY26, exports accounted for 48 per cent of the company’s sales, up from 43 per cent in FY25.
Order pipeline
Shilchar Technologies currently anticipates an order pipeline of around Rs.800 crore for FY27, arising from both domestic and international clients.
Also read: Shilchar Technologies to complete capacity expansion by April 2027
Featured photograph (source: Shilchar Technologies) shows work underway at the company’s upcoming Unit-3 at Gavasad. Upon its completion in April 2027, the company’s overall capacity will stand enhanced to 14,000 MVA.