Shivam Autotech Limited (SHIVAMAUTO) share price

₹16.84 on NSE as of 2026-10-08. +0.96% on the day. market cap ₹221 Cr. P/E 1.9. 52-week range ₹13.34 to ₹31.73. Automobile and Auto Components.

What the company does

The working capital utilisation in last 12 months ending on May ’25 is ~78%, reflecting moderate limit utilisation. The cash & cash equivalents stood at ~Rs. 0.22 crore as on March 31, 2025.

Filed by CARE Ratings, page 3.

Shivam Autotech FY26: A ₹410 Cr Business, a ₹41 Cr Hole Where the Net Worth Used to Be

At a glance

Shivam Autotech forges transmission gears and shafts, the parts that pass engine power along to the wheels. Most of them are fitted to two-wheelers. Revenue for the year to March 2026 was ₹409.58 crore. The previous year brought in ₹453.98 crore of sales. The net loss came to ₹81.33 crore, the deepest in the ten years on record.

Reserves are the profits a company has kept in the business instead of paying them out. Shivam's stood at ₹172 crore in the year to March 2017. They now stand at minus ₹66.98 crore. Net worth, what would be left for shareholders once every debt was settled, has also gone below zero. On these accounts it is roughly minus ₹40.68 crore. The auditors set this out plainly, noting that net worth was negative. They also recorded current liabilities exceeding current assets by ₹50.60 crore. They then signed off on a going-concern basis, which assumes the company keeps trading for another year.

Borrowings stand at ₹403 crore. Interest for the year came to ₹67.92 crore, more than double the operating profit. Operating profit, what the business earns before interest and tax, was about ₹32 crore. Around 43% of revenue in the year to March 2025 came from one customer, Hero MotoCorp. The market values the whole company at ₹222 crore.

February 2026 brought a ₹120 crore preferential issue of debentures, which are loans sold to a named buyer. A rights issue of the same size was approved by the board on 1 July 2026.

Introduction

Shivam Autotech was carved out of the Munjal business empire in 2005. The forging and machinery divisions were hived off into a company of their own. A hive-off moves a division into a separate company with its own board and accounts. Forging means shaping metal under pressure rather than cutting it from a solid block.

The company belongs to the Satyanand Munjal group. The founding logic was straightforward: make gears and shafts for Hero MotoCorp. Gears and shafts are the parts that carry engine power along to the wheels. Hero's plants sit close to Shivam's four units, at Gurgaon, Haridwar, Bengaluru and Rohtak.

That proximity has always cut both ways. It gives Shivam short delivery distances and a steady buyer on the doorstep. It also ties a ₹410 crore company to the order patterns of a single client. One vehicle category, the two-wheeler, carries much the same weight. Four plants, one principal buyer and one category have been the shape of the business since.

The recent moves have been financial rather than industrial. February 2026 brought an issue of optionally convertible debentures worth ₹120 crore. These are loans whose holder may later choose to swap them for shares. The issue came in two tranches and was subscribed by Alpha Alternatives. The proceeds were earmarked to repay debentures issued earlier.

In June 2026 the Company Secretary resigned. On 1 July 2026 the board appointed a replacement. The same meeting approved a rights issue of up to ₹120 crore. A rights issue offers new shares to existing shareholders, usually to bring in cash. The two raises of 2026 are therefore the same size as each other. All the figures here are consolidated, covering the group rather than a single unit.

Business model

Shivam forges metal into shapes that spin. The product list runs to transmission gears, transmission shafts and starter-motor components. Alternator components, magneto parts and steering components come off the same lines. The work uses cold, warm and hot forging, together with near-net-shape technology. Near-net-shape means forging a part so close to its final form that little machining remains. Less waste, less scrap and tighter tolerances follow. Machining is the costly step, and this method leaves less of it to do.

The customer list is wide: Hero MotoCorp, Munjal Showa, Bosch and Hilti. Mando and Indian Nippon Electricals also buy from the company. The weighting is where it narrows. Hero MotoCorp alone accounted for around 43% of revenue in the year to March 2025. A credit-rating report, which judges a borrower's ability to repay, looks at the other side of that. It notes that gears and shafts make up roughly 65% to 70% of Hero's own requirement for such parts. The dependency runs in both directions.

Steel is the principal input. The same rating report puts it at about 37% of operating income. Shivam passes steel price revisions on to the vehicle makers that buy its parts. The report describes a reset that happens quarterly and arrives with a lag. Margins carry the difference until the new price takes effect.

Forging plant is heavy equipment, and the four units at Gurgaon, Haridwar, Bengaluru and Rohtak carry it. Interest of ₹67.92 crore a year also has to be met from what the forge earns.

About 97% of revenue comes from the automotive segment, and the other 3% from non-automotive work. The company has talked about diversifying into three-wheelers, four-wheelers and commercial vehicles. It has also mentioned non-auto uses such as aerospace and power tools. For now the model is forging parts, mostly for two-wheelers and mostly for one buyer.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Shivam Autotech Limited.

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