Shanthi Gears Limited (SHANTIGEAR)
₹542.05 +1.30% last close, 16 Oct
Q2 FY27 results
📅 Next results: 26 Oct 2026 (board meeting)Shanthi Gears Limited's board meets on 26 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Shanthi Gears' revenue was ₹115 Cr (-14.4% year on year, -14.5% on the previous quarter), and net profit ₹9.8 Cr (-56.6% year on year); the operating margin was 13.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹115 | -14.4% | -14.5% |
| Operating profit | ₹15.2 | -50.2% | -36.8% |
| Net profit | ₹9.8 | -56.6% | -38.4% |
| EPS (₹) | 1.28 | -56.8% | -39.6% |
| Operating margin | 13.1% | — | — |
SHANTIGEAR delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 36.56% of the SHANTIGEAR shares traded on NSE were taken to delivery, against the stock's own 20-session average of 44.35%. That is close to its usual level. Volume was 0.2 times its average, well below normal. It closed at a price band (circuit) on 7 sessions in about the last 20.
Delivery in the last 5 sessions: 49.7% · 45.7% · 51.0% · 48.6% · 36.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Shanthi Gears Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period from 1st July 2026 to 30th September 2026. The certificate was issued by Registrar and Transfer Agent MUFG Intime India Private Limited on 3rd October 2026. It confirms that all securities received for dematerialisation during the quarter were duly processed, accepted or rejected, and listed on the respective stock exchanges. The filing is standard regulatory paperwork and has no impact on business operations or financials.
- Compliance certificate pertains to the quarter ending 30th September 2026 (01st July 2026 to 30th September 2026)
- RTA MUFG Intime India Private Limited issued the confirmation on 03-10-2026
- Filing submitted to NSE and BSE on 08th October 2026
- Confirms that dematerialised security certificates were verified, cancelled, and listed according to prescribed timelines
ICRA Limited has reaffirmed Shanthi Gears Limited's long-term rating at [ICRA]AA with a Stable outlook and its short-term rating at [ICRA]A1+. The rating surveillance covers bank facilities totaling Rs 39.00 crore, which includes Rs 38.99 crore in long-term non-fund based limits and a Rs 0.01 crore short-term overdraft limit. The rated bank facility represents approximately 14.5% of the company's TTM revenue of Rs 269 crore. Given the company's debt-free balance sheet (Rs 0 crore debt), the reaffirmation is a routine validation of its strong credit profile.
- Long-term credit rating reaffirmed at [ICRA]AA with a Stable outlook.
- Short-term credit rating reaffirmed at [ICRA]A1+.
- Total bank facilities rated stand at Rs 39.00 crore across three banks.
- Rated facilities comprise Rs 38.99 crore in long-term non-fund based limits and Rs 0.01 crore in short-term overdraft.
- Rated limits represent ~14.5% of TTM revenue (Rs 269 crore).
Shanthi Gears Limited has announced that Mr. Malliraj S has stepped down from his position as Head – Strategic Sourcing and Senior Management Personnel (SMP). The departure is effective from the close of business on September 15, 2026, following a prior intimation made on July 29, 2026. The company, which reported TTM revenue of Rs 269 Cr, has not yet named an immediate successor in the filing.
- Mr. Malliraj S stepped down as Head – Strategic Sourcing and Senior Management Personnel (SMP)
- Resignation effective from the closing hours of September 15, 2026
- Filing serves as a follow-up to the company's prior intimation dated July 29, 2026
Shanthi Gears Limited announced key managerial changes approved at its Board meeting on September 3, 2026. Mr. Sai Krishna Alluri, a Chartered Accountant and Cost Accountant with over 16 years of experience, has been appointed as the full-time Chief Financial Officer with immediate effect. He succeeds Mr. Sukanta Kumar Panigrahi, who ceases to be the Interim CFO. Additionally, Ms. Helena Susan has been appointed as Head – Human Resources with over 22 years of experience.
- Mr. Sai Krishna Alluri appointed as Chief Financial Officer effective September 3, 2026
- Incoming CFO brings 16+ years of experience across Finance, GST, Tax, and Cost Reduction
- Mr. Sukanta Kumar Panigrahi ceases to be the Interim CFO with immediate effect
- Ms. Helena Susan appointed as Head – Human Resources bringing 22+ years of HR experience
Shanthi Gears Limited responded on 26th August, 2026 to an exchange surveillance letter dated 25th August, 2026 regarding an increase in trading volume. The company clarified that it is fully compliant with Regulation 30 of SEBI Listing Regulations. It confirmed that no undisclosed information or price-sensitive announcement is pending that could impact share price or volume behavior.
- NSE issued surveillance letter no. NSE/CM/Surveillance/17405 on 25th August, 2026 regarding volume increase
- Company issued formal clarification on 26th August, 2026
- Confirmed zero pending undisclosed price-sensitive announcements under SEBI Regulation 30
Shanthi Gears Limited successfully passed all seven resolutions at its 53rd Annual General Meeting held on July 29, 2026. Key approvals include the adoption of FY26 financial statements, a dividend declaration, and the appointment of K Ilango as an Independent Director. While most resolutions passed with near-unanimous support, the special resolution for commission payment to M A M Arunachalam saw a 3.68% dissent from voting shareholders. The promoter group, which holds 70.5% of the company, demonstrated high participation with 99.98% of their shares voted.
- 7 resolutions passed with requisite majority during the 53rd AGM held via video conferencing
- 6.31 crore total votes were polled, representing 82.25% of the total outstanding shares
- 3.68% of votes (23.24 lakh shares) were cast against the commission payment to M A M Arunachalam
- 99.99% approval received for the appointment of K Ilango as an Independent Director
- Record date for the meeting was July 22, 2026, with a total of 29,221 shareholders on record
Shanthi Gears Limited concluded its 53rd Annual General Meeting on July 29, 2026, where shareholders voted on a total dividend of ₹5 per share for FY26 (comprising a ₹3 interim and ₹2 final dividend). The meeting included the adoption of FY26 financial results and the appointment of K Ilango as an Independent Director for a five-year term. Management provided a performance update for FY26 and the quarter ended June 30, 2026, highlighting the company's continued focus on the high-margin replacement segment. The company remains debt-free with a strong ROCE of 26.0%.
- Total dividend of ₹5 per share for FY26, including a ₹2 final dividend and a previously paid ₹3 interim dividend.
- Appointment of K Ilango as an Independent Director for a 5-year term from May 5, 2026, to May 4, 2031.
- Remote e-voting was conducted between July 26 and July 28, 2026, for all shareholders as of the July 22 cut-off date.
- The meeting saw participation from 48 members and included a detailed business presentation by the CEO.
- Special resolutions were proposed for director commissions covering the period from FY 2025-26 to FY 2029-30.
Shanthi Gears reported a weak Q1 FY27 with revenue declining 14.4% YoY to ₹115.49 Cr. Profitability was significantly impacted, with PAT falling 56.6% YoY to ₹9.85 Cr and PBT margins contracting from 22.7% to 12.3%. Despite the earnings dip, the company maintains a healthy unexecuted order book of ₹378 Cr, which represents approximately 73% of its FY26 annual revenue. Additionally, the Head of Strategic Sourcing, Mr. Malliraj S, has resigned effective September 2026.
- Revenue from operations decreased by 14.4% YoY to ₹115.49 Cr in Q1 FY27
- Net Profit (PAT) fell sharply by 56.6% to ₹9.85 Cr from ₹22.69 Cr in Q1 FY26
- Unexecuted order book remains robust at ₹378 Cr as of June 30, 2026
- Achieved a Return on average Invested Capital (ROIC) of 17% for the quarter
- Generated Free Cash Flow of ₹16.2 Cr during Q1 FY27 despite lower profits
Shanthi Gears reported a weak Q1 FY27 with revenue falling 14.4% YoY to ₹115.49 Cr and PAT dropping 56.6% to ₹9.85 Cr. Profitability was significantly impacted as total expenses remained relatively sticky, decreasing only 2.4% despite the double-digit revenue drop. On a positive note, the company maintains a robust unexecuted order book of ₹378 Cr, which is approximately 73% of its total FY26 revenue. Additionally, the Head of Strategic Sourcing, Mr. Malliraj S, has resigned effective September 15, 2026.
- Revenue from operations declined 14.4% YoY to ₹115.49 Cr from ₹134.89 Cr in Q1 FY26
- Profit After Tax (PAT) fell 56.6% YoY to ₹9.85 Cr compared to ₹22.69 Cr in the previous year
- Unexecuted order book remains healthy at ₹378 Cr as of June 30, 2026
- Achieved a Return on average Invested Capital (ROIC) of 17% for the quarter
- Generated positive Free Cash Flow of ₹16.2 Cr during the quarter
Shanthi Gears Limited has appointed Mr. Sukanta Kumar Panigrahi as Interim Chief Financial Officer effective July 13, 2026. This appointment follows the withdrawal of Mr. Sudhir R, who was previously appointed on June 8, 2026, but expressed inability to join due to personal reasons. Mr. Panigrahi is a Chartered Accountant and Company Secretary with 18 years of experience, currently associated with the holding company, Tube Investments of India Limited. The interim arrangement will continue until a permanent CFO is identified and takes charge.
- Mr. Sukanta Kumar Panigrahi appointed as Interim CFO effective July 13, 2026
- Interim CFO brings 18 years of experience in Finance, Treasury, and Fund Raising
- Previous appointee Mr. Sudhir R withdrew from the role after his June 8, 2026 appointment
- Board meeting for the appointment concluded in 25 minutes (10:45 AM to 11:10 AM)
- Mr. Panigrahi is being transitioned from the holding company, Tube Investments of India Limited
Shanthi Gears Limited has scheduled its 53rd Annual General Meeting (AGM) for July 29, 2026. The board has recommended a final dividend of ₹2 per share (200%), which, combined with the ₹3 interim dividend already paid, brings the total FY26 payout to ₹5 per share (500%). Key resolutions include the appointment of Mr. K Ilango as an Independent Director for five years and the approval of a ₹1 crore commission for the Non-Executive Chairman, Mr. M A M Arunachalam. The company is also seeking a blanket approval for Non-Executive Director commissions up to 1% of net profits through FY2030.
- Final dividend of ₹2 per share recommended, bringing total FY26 dividend to ₹5 per share
- AGM scheduled for July 29, 2026, at 04:30 PM via Video Conferencing
- Proposed commission of ₹1,00,00,000 (₹1 Cr) for Non-Executive Chairman Mr. M A M Arunachalam for FY26
- Appointment of Mr. K Ilango as Independent Director for a 5-year term until May 2031
- Commission for Non-Executive Directors capped at 1% of net profits for the period FY26 to FY30
Shanthi Gears Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that for the quarter ended June 30, 2026, all securities received for dematerialization were processed, mutilated, and cancelled as per regulatory requirements. The Registrar and Transfer Agent, MUFG Intime India Private Limited, verified that the name of the depositories has been substituted in the register of members. This is a standard procedural filing with no impact on the company's financial performance or operations.
- Compliance certificate covers the quarter from April 1, 2026, to June 30, 2026
- Confirmation provided by Registrar and Transfer Agent, MUFG Intime India Private Limited
- Securities received for dematerialization were confirmed to depositories within prescribed timelines
- Physical security certificates were mutilated and cancelled after due verification
Tube Investments of India Limited, the promoter of Shanthi Gears, has submitted a mandatory annual declaration under SEBI Takeover Regulations for the financial year 2025-26. The filing confirms that the promoter group has not created any new encumbrance or pledge on their shares, directly or indirectly, during the period. The promoter group continues to hold a dominant 70.47% stake in the company. This routine disclosure provides assurance regarding the stability of the promoter's shareholding and the absence of financial stress at the parent level.
- Promoter group confirms no new encumbrances were made during the financial year 2025-26
- Promoter holding remains stable at 70.47% as of March 2026
- Compliance filing made under Regulation 31(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations
- Company maintains a debt-free status with a net worth of Rs 440 Cr
Shanthi Gears Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting July 1, 2026. This action is taken in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the announcement of the company's Q1 FY27 financial results. The window will remain closed until 48 hours after the unaudited standalone financial results for the quarter ending June 30, 2026, are declared. The specific date for the Board Meeting to approve these results will be communicated at a later date.
- Trading window closure commences on July 1, 2026, for the quarter ending June 30, 2026.
- Applies to Directors, designated persons, and their immediate relatives under SEBI insider trading regulations.
- Window will reopen 48 hours after the official declaration of Q1 FY27 unaudited standalone results.
- The Board Meeting date for result approval is yet to be announced by the company.
Tube Investments of India Limited, the promoter of Shanthi Gears Limited, has submitted a formal disclosure under Regulation 31(4) of the SEBI (SAST) Regulations. The filing confirms that the promoter group has not created any new direct or indirect encumbrances on their shareholding during the financial year 2025-26. This is a standard annual compliance requirement aimed at maintaining transparency regarding promoter share pledging. The declaration indicates that the promoter's stake remains stable and free of new debt-related liens.
- Promoter Tube Investments of India Limited filed disclosure under SEBI (SAST) Regulation 31(4).
- Confirmation provided that no new encumbrances were made by the promoter group during FY 2025-26.
- The disclosure was simultaneously submitted to the Audit Committee of Shanthi Gears Limited.
- This filing reinforces transparency regarding the Murugappa Group's stable holding in the company.
Financial Performance
Revenue Growth by Segment
The company reported a total operating income of INR 604.6 Cr in FY2025, representing a growth of 12.8% YoY. The replacement segment is a major driver, contributing 55.3% of total revenue in FY2025. No single end-user segment (Steel, Cement, Power, etc.) contributes more than 30% to the total revenue, providing a diversified buffer against sector-specific downturns.
Geographic Revenue Split
Not disclosed in available documents; however, the company maintains a dominant presence as a leading manufacturer of industrial gears in the Indian domestic market.
Profitability Margins
Operating margins have shown a consistent upward trend, expanding from 14.3% in FY2020 to 19.1% in FY2024, and reaching 21.4% in FY2025. This expansion is driven by a favorable product mix and better absorption of fixed costs as the revenue scale increases.
EBITDA Margin
EBITDA margin stood at 21.4% for FY2025, up from 19.1% in FY2024. In Q1 FY2026, the margin further improved to 22.6% compared to 20.6% in Q1 FY2025, reflecting strong core profitability and effective cost optimization measures.
Capital Expenditure
Capital expenditure for FY2025 was INR 24.35 Cr, an increase of 21.75% from the INR 20.00 Cr spent in FY2024. These investments are focused on property, plant, and equipment to support moderate capacity enhancements and are entirely funded through internal accruals.
Credit Rating & Borrowing
The company holds a long-term rating of [ICRA]AA (Stable) and a short-term rating of [ICRA]A1+. Borrowing costs are effectively 0% as the company has remained debt-free for the last 10 years, with nil utilization of fund-based working capital limits.
Operational Drivers
Raw Materials
Key raw materials include steel, castings, and forgings. While specific percentage breakdowns per material are not provided, raw material costs are a significant component of the total expenditure, and margins are sensitive to price volatility in these commodities.
Capacity Expansion
Current installed capacity is not specified in units; however, the company is executing a moderate capex plan (INR 24.35 Cr in FY25) to scale operations. Management expects better cost absorption as these revenues scale up.
Raw Material Costs
Raw material costs are subject to market volatility; the company mitigates this through periodic cost optimization and a high-value-addition product strategy. In historical periods (FY16), material consumption was approximately 38% of total income.
Manufacturing Efficiency
Operating margins improved to 22.6% in Q1 FY2026, indicating high manufacturing efficiency and the ability to maintain profitability even when revenue growth is flat (INR 134.9 Cr in Q1 FY26 vs INR 138.8 Cr in Q1 FY25).
Strategic Growth
Expected Growth Rate
12.80%
Growth Strategy
Growth is targeted through deepening penetration in the replacement segment (currently 55.3% of revenue), which offers higher margins. The company leverages its 50-year brand legacy and the operational/financial ecosystem of the Murugappa Group to secure large-scale orders in diversified sectors like Railways and Steel.
Products & Services
Industrial gears, customized gearboxes, gear motors, and replacement gear components.
Brand Portfolio
Shanthi Gears.
Market Expansion
The company is focusing on scaling its operations and earnings to trigger a potential credit rating upgrade, targeting diversified end-user segments to insulate against sector-specific cyclicality.
Market Share & Ranking
Identified as a leading manufacturer of industrial gears in India; specific percentage market share not disclosed.
Strategic Alliances
Subsidiary of Tube Investments of India Limited (TIIL) and part of the Murugappa Group, providing implicit operational and financial support.
External Factors
Industry Trends
The industrial gear industry is currently benefiting from a recovery in the capex cycles of end-user industries. There is an evolving trend toward high-precision, customized gear solutions where Shanthi Gears is positioned as a premium provider.
Competitive Landscape
Operates in a competitive market with both organized and unorganized players, but maintains an edge through high value-addition and a reputed clientele in the public and private sectors.
Competitive Moat
The moat is sustained by a 50-year established presence, deep technical expertise in customized gear design, and the strong financial backing of the Murugappa Group. The high contribution from the replacement segment (55.3%) creates a sticky customer base with high switching costs.
Macro Economic Sensitivity
Highly sensitive to industrial GDP and the domestic capex cycle. A contraction in industrial output typically leads to a reduction in demand for heavy-duty industrial gearboxes.
Consumer Behavior
Industrial customers are increasingly prioritizing long-term reliability and replacement availability, favoring established brands like Shanthi Gears over lower-cost, unorganized competitors.
Geopolitical Risks
Exposure is primarily domestic; however, global commodity price shifts (steel) impact input costs.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act, 2013 and Indian Accounting Standards (Ind AS). The company must comply with industrial safety and environmental norms applicable to heavy engineering units.
Environmental Compliance
The company is exposed to tightening environmental regulations, which may necessitate future investments in cleaner manufacturing processes to avoid penalties or operational disruptions.
Taxation Policy Impact
The effective tax rate is approximately 25.4%, based on a PBT of INR 130.09 Cr and tax paid of INR 33.06 Cr in FY2025.
Legal Contingencies
The company has disclosed the impact of pending litigations in Note 29a of its financial statements. While the specific INR value is not detailed in the summary, auditors have confirmed these are disclosed in accordance with statutory requirements.
Risk Analysis
Key Uncertainties
The primary uncertainty is the volatility of raw material prices and the cyclical nature of the heavy engineering industry, which could impact revenue stability by 10-15% during macro-economic slowdowns.
Geographic Concentration Risk
Primarily concentrated in the Indian market, making it susceptible to domestic economic policy shifts.
Technology Obsolescence Risk
Moderate risk; the company mitigates this by focusing on high-value-added customized products that are difficult to commoditize.
Credit & Counterparty Risk
Low risk; the company deals with a reputed and diversified clientele, and its strong liquidity (INR 173.6 Cr in investments) provides a significant buffer.
