SETL

Standard Engineering Technology Limited reported a robust Q3 FY26, with total income increasing by 37.1% year-on-year to INR196 crores. For the nine months ended December 31, 2025, total income grew 23.6% to INR562 crores. EBITDA for Q3 stood at INR34 crores, contributing to a 9M FY26 EBITDA of INR102 crores. PAT grew 28.3% in Q3 and 18.8% for the nine-month period, reflecting disciplined execution and early benefits from the integrated engineering model.

The company formally changed its name from Standard Glass Lining Technology Limited to Standard Engineering Technology Limited in Q3 FY26, signaling an expansion of its identity beyond just glass lining. This change reflects its evolution into a high-precision integrated engineering platform capable of delivering complex multidisciplinary projects with single-point accountability. Management emphasized that glass lining remains a core, profitable vertical, but the new name better represents their expanded capabilities and global ambitions.

Standard Engineering successfully completed the acquisition of Scigenics India Private Limited and a majority stake in C2C Engineering Private Limited during Q3. Scigenics is expected to contribute INR35-40 crores in revenue for the current financial year, while C2C Engineering (now Standard C2C Engineering Private Limited) is projected to reach INR40 crores. These acquisitions significantly strengthen the company's position in bioprocess, fermentation, life science systems, and bring process mechanical, civil, HVAC, electrical, instrumentation, and automation engineering capabilities in-house.

The company highlighted strong market acceptance for its shell and tube glass lining heat exchangers, with 200 units already in the order book and 100 units successfully delivered. These products are replacing graphite and alloy alternatives due to superior safety and reliability. Additionally, successful execution of conductivity glass lining reactors, especially for regulated pharma markets, has been encouraging. From April 2027, the company plans to officially launch these reactors in India and global markets, with international partner IPP expressing strong interest.

Standard Engineering is investing significantly in capacity expansion. The company has already spent INR30 crores in the current year and plans an additional INR20 crores in Q4 FY26. Total gross block creation is projected at INR200 crores, aiming to create INR2,000 crores in capacity. For FY27, the company plans a total capex of INR100-150 crores, including INR70-100 crores for the first phase of a new greenfield project, targeting completion in FY27.

While Q3 FY26 saw a temporary dip in gross margin from 18.6% to 15.1% due to a deferral of INR3.5 million in exports to Q4, management expects margins to improve in Q4. The company is targeting 13% export contribution for FY26 and aims to increase this to 15-20% in FY27, driven by higher margins in export markets. The company is confident in achieving its 25% revenue growth target for FY26 and expects EBITDA and PAT to continue increasing in the next fiscal year.

The company maintains a strong financial position with INR250 crores cash in the bank and utilizes only INR40 crores of its cash credit limits, indicating ample liquidity. Management clarified that a recent promoter share pledge was for personal purposes and not related to the company's financial health, reassuring investors about the company's robust cash flow and overall financial strength.