Shaily Engineering Plastics Q1 FY27 earnings call

Shaily Engineering Plastics Limited reported a robust Q1 FY27, with consolidated revenue growing 14% year-on-year to INR 281 crores, up from INR 247 crores in Q1 FY26. This growth translated into an 18% increase in EBITDA, reaching INR 83 crores from INR 70 crores, and an EBITDA margin expansion of 120 basis points to 29.7%. Profit After Tax (PAT) also saw a 17% rise to INR 48 crores, with PAT margin improving by 40 basis points to 17.1%. Machine utilization improved slightly to 50.2% from 48.7% in the prior year.

The Healthcare segment was the primary growth engine, with revenue soaring 85% year-on-year to INR 142 crores, now contributing approximately 51% of the consolidated revenue. This growth was largely driven by the pen injector platform, including devices for GLP-1 and other chronic therapies. The company secured orders for injector pen supplies following regulatory approvals for Semaglutide in Canada and Brazil, and signed two new platform projects. Shaily has also appointed dedicated business development heads for Europe and North America, aiming to secure partnerships with major global pharmaceutical companies within the next 4-6 quarters.

The Consumer segment reported revenue of INR 116 crores, a 24% decline from INR 151 crores in Q1 FY26, primarily due to softer demand in home furnishings across Europe and the United States. Despite this, the company expanded customer relationships and added new programs, including a global project from an FMCG customer and new business in LED lighting. The Industrial segment maintained a healthy growth trajectory, with revenue increasing 25% year-on-year to INR 23 crores, supported by new customer additions and opportunities in engineering applications, including Consumer Electronics. The company onboarded a new customer with orders for five Consumer Electronic components, with commercial supply expected before the financial year-end.

The company is actively working on improving the efficiency of its new production line, which has already seen a 9% increase in speed, with an additional 30% jump expected upon installation of new equipment by the end of the current quarter. Total installed pen injector capacity is projected to reach approximately 75 million pens per annum by the end of September, with an additional 25 million pen capacity becoming operational. For Semiconductor Trays, an investment of approximately INR 5 crores is planned for the existing facility, while the new plant for Consumer Electronics in the south will require INR 80-100 crores.

Shaily is aggressively pursuing new product development in healthcare beyond GLP-1 and insulin. This includes emergency use auto-injectors, a program expected to close by the end of 2027, focusing on high reliability (99.999%) and automatic needle insertion. The company is also developing sustainable reusable auto-injectors, with a launch targeted by the end of the year, to address the environmental impact of disposable devices. Additionally, on-body injectors for oncology treatments and biologics/biosimilars, with a delivery range of 3-15ml, are under development, with prototypes for the Mira platform already existing from 2-3 years ago.

Looking ahead to FY27, Shaily aims to strengthen and ramp up newly commissioned capacities, deepen strategic customer relationships, and accelerate innovation through its IP-led platforms. The company expects its gross margins to normalize by Q3, recovering from temporary pressure^📎s due to commodity and freight cost increases. Management projects the Consumer Electronics segment to reach $10 million in revenue within 24-30 months and anticipates the Abu Dhabi facility to commence commercial sales by the end of FY28, targeting markets in Europe and globally. The overall domestic business is expected to grow as a percentage of total revenue in the future.