Shivalic Power Control (SPCL) Q2 FY27 Profit Crashes 74% as Revenue Slumps
The electrical panel maker saw a severe sequential contraction in the September quarter, with profitability heavily reliant on other income.
Shivalic Power Control's Q2 FY27 revenue fell 37% quarter-on-quarter to ₹63.7 crore, while profit plunged 74% to ₹2.1 crore. The company's core operating performance weakened significantly.
For a company that builds its business one large, custom order at a time, Shivalic Power Control’s September quarter shows how quickly the tide can turn. Revenue and profit fell sharply from the previous quarter, revealing the lumpy nature of its project-based sales and a margin squeeze that left earnings heavily dependent on other income.
Revenue for Q2 FY27 stood at ₹63.7 crore, a 37% drop from the ₹101.2 crore reported in the March 2026 quarter. Profit after tax fell even harder, plunging 74% to ₹2.1 crore from ₹8.0 crore. The net profit margin compressed to 3.3%, down from 7.9% in the prior quarter.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentSep 2026 (Q2 FY27) | PreviousMar 2026 (Q4 FY26) |
|---|---|---|
| Revenue (₹ Cr) | 63.68 | 101.18 |
| Profit (₹ Cr) | 2.10 | 7.96 |
| Net Profit Margin (%) | 3.3 | 7.9 |
The core business weakened
The sharp drop was not just about lower sales. FlashFinance.news reported that operating profit fell 63% quarter-on-quarter, with the operating margin contracting 456 basis points to 6.3%. This indicates pressure on the core manufacturing business. The same source highlighted that 44% of pre-tax profit in the quarter came from other income and one-off items, suggesting the underlying operational performance was even weaker than the headline profit suggests.
Why the business swings
Shivalic’s model is inherently volatile. As noted by Newboard.in, the company designs and assembles made-to-order electrical panels, and its growth has come from winning fewer, larger orders. A single large order, like a ₹28 crore project for an RBI data centre in FY24, can significantly sway a quarter or a year. The recent quarter likely lacked such a major project completion, leading to the sequential decline.
Furthermore, the company has limited pricing power. Most of a panel's cost comes from bought-in switchgear and metals like copper and steel, whose prices it cannot control. This exposes margins to raw material volatility and competition from unorganised players.
A working capital-intensive path forward
The outlook is tied to order execution and working capital management. The business is working capital intensive, as every large order requires stocking up on materials and often comes with longer customer payment terms. The company’s IPO in 2024 allocated ₹30 crore specifically for working capital needs.
While the broader sector outlook is positive—with the Centre for Monitoring Indian Economy expecting increased production of transformers and switchgear in H2 FY27—Shivalic’s near-term recovery depends on securing and executing its next wave of large projects.
Key Points
- Revenue fell 37% and profit plunged 74% quarter-on-quarter in Q2 FY27.
- The net profit margin compressed to 3.3%, with nearly half of pre-tax profit reliant on other income.
- The company's project-based business model leads to significant quarterly volatility in sales and earnings.
- Shivalic faces margin pressure due to high reliance on volatile raw material costs and competitive pricing.
- Future performance hinges on winning large orders and managing working capital efficiently.
Hexa Perspective
This quarter underscores the fundamental tension in Shivalic Power's business: growth through large orders creates unavoidable lumpiness in reported numbers. The severe margin compression shows how quickly profitability can erode when sales volume drops, given the high fixed-cost nature of procuring materials for custom projects.
The reliance on other income to prop up profit is a clear warning sign about core operational health. Investors are effectively betting on the company's ability to consistently land and execute large contracts in a competitive market where input costs are beyond its control. Until the order book visibility improves, the stock may continue to reflect this high operational risk.
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.