Standard Engineering Technology Limited

Standard Glass Lining Technology Limited delivered a robust Q1 FY26, with total income reaching ₹178 crores, marking a 23.6% year-on-year growth. This growth was attributed to strong execution and increasing export volumes. EBITDA for the quarter stood at ₹35 crores, a 31.9% YoY increase, with margins expanding to 19.5%. Profit after tax (PAT) also saw significant growth of 37.6% YoY, totaling ₹21 crores, resulting in a PAT margin of 11.9%.

A major highlight of the quarter was the domestic launch of Shell and Tube Glass Lined Heat Exchangers, an innovative product meeting demand for corrosion-resistant solutions in pharmaceutical and specialty chemical sectors. The company received strong initial orders, totaling 250 units, and successfully installed the first unit at SRF, Dahej plant. Management expects to ramp up production to 300 units per month starting January 2026, with assembly shifting to India from Japan, which is anticipated to improve margins and reduce prices.

SETL is actively expanding its global footprint through strategic partnerships. An agreement with BioCon Solutions Pte Limited in Singapore makes BioCon the exclusive agent for markets including Indonesia, Malaysia, Thailand, and Singapore, already showing early traction. Additionally, the company incorporated Standard Engineering Inc., a wholly-owned subsidiary in South Carolina, USA, to support its exclusive dealer IPP, providing technical and engineering resources, faster delivery, and enhanced after-sales service in the US and Europe.

The company is undertaking significant capacity expansion and modernization efforts. It plans to invest ₹40-50 crores in automation and robotics for existing facilities over the next 1-1.5 years, aiming to add 40-50 robots. A new greenfield project, focused on higher fabrication and heavy engineering, is also underway with an investment of ₹150-180 crores, expected to be completed in 15-18 months. These initiatives are projected to triple manufacturing capacity and support future growth.

Management expressed confidence in achieving 20-25% year-on-year revenue growth in the coming years, driven by diversified product portfolios and increasing exports. The domestic CDMO and specialty chemical sectors are experiencing rapid growth, with Standard Glass well-positioned to capitalize on these opportunities due to its engineering excellence and end-to-end solutions. The company aims to increase its export contribution to 12-15% this year, with a long-term target of 40% from exports over the next decade.

The company maintains a strong focus on operational efficiency, reflected in its disciplined control over receivables and inventory, resulting in working capital days of 173. Management is actively working to further reduce working capital days to 150. Cash and cash equivalents stood at ₹209 crores, providing significant financial flexibility to support ongoing strategic initiatives and growth.