Jaipur-based Shera Energy is eyeing 25-30% revenue growth in FY27, backed by plans to manufacture solar ribbons and CTC conductors. Following strong Q1 FY27 profit growth, the company is expanding capacity to tap into India's power and renewable energy demand, though investors should watch for potential execution and liquidity risks.
Shera Energy is aiming for a 25% to 30% jump in revenue for the current fiscal year, FY27, as it scales up operations and expands its product lineup. This growth strategy follows a strong start to the year, with the company reporting a significant year-on-year rise in net profits on revenues of approximately ₹490 crore in the first quarter of FY27. For the full fiscal year 2026, the company recorded a total turnover of ₹1,640 crore.
To drive this growth, Shera Energy is venturing into higher-value products such as solar ribbons, which are used in solar modules, and Continuously Transposed Conductors (CTC) for high-voltage transformers. These products are aimed at reducing India's dependence on imports, aligning with the government's 'Make in India' initiative. The company has already started capital spending for solar ribbon manufacturing near Jaipur and is currently undergoing product trials. Commercial production is set to begin once regulatory certifications are received.
Beyond domestic expansion, the company is looking to widen its geographic footprint with a new subsidiary, Shera Zambia Limited, which aims to cater to African markets. This follows its established history of manufacturing aluminium winding wires since 2003, with an existing production capacity of about 36,000 tonnes per annum.
While the company’s growth plans and recent profit performance present a positive outlook, investors should also consider the financial structure. The company faces a relatively high interest burden, with net interest coverage reported at 2.7x. This means the company uses a significant portion of its operating profit to pay interest on its borrowings, which can limit financial flexibility. Furthermore, as a small-cap company, Shera Energy’s stock is more prone to market volatility compared to larger, established players, and liquidity in the stock can be lower.
Looking ahead, the success of these plans will depend on how quickly and effectively the company can secure regulatory approvals and ramp up commercial production for its new product categories. Investors may want to track the timelines for these project launches and the company’s ability to manage its interest obligations as it continues to invest in new capacity.