Shaily Engineering Plastics Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Shaily Engineering Plastics delivered strong Q3 FY26 results with revenue growing 27% YoY and EBITDA up 43% YoY, primarily driven by robust performance in the Healthcare segment. The company announced a strategic new facility in Abu Dhabi to significantly expand pen/auto-injector capacity and appointed a new COO for its Healthcare division. While the Consumer segment faced degrowth, management expects a rebound, and new capacity additions in India are progressing despite qualification delays.

Highlights

  • Q3 FY26 Revenue of INR 251 crores, up 27% YoY.

  • Q3 FY26 EBITDA of INR 66 crores, up 43% YoY, with margin at 26.5% (up 310 bps YoY).

  • Healthcare segment revenue grew 139% YoY to INR 104 crores in Q3 FY26, now contributing 42% of total revenue.

  • New scalable facility in Abu Dhabi to add 75 million pen/auto-injectors capacity, increasing total capacity to 150 million units.

  • Appointment of Mr. Joe Kam as Chief Operating Officer of Healthcare division to drive operational excellence.

Concerns

  • Consumer segment revenue degrew 13% YoY to INR 123 crores in Q3 FY26 due to demand slowdown.

  • Qualification of the first high-speed line is delayed, impacting supply ramp-up for GLP-1 injectors.

  • Temporary cost increases in Q3 FY26 due to exhibitions and Abu Dhabi setup, with related income deferred to Q4 FY26.

Key financials

3 periods

Headline

  • ROCE
    38.4%
  • ROE
    29.1%
  • Debt to Equity
    0.3×
  • Fixed Asset Turnover
    2×

Q3 FY26

  • Revenue
    ₹251 Cr
    YoY +27%
  • EBITDA
    ₹66 Cr
    YoY +43%
  • EBITDA Margin
    26.5%
  • PAT
    ₹37 Cr
    YoY +48%

9M FY26

  • Revenue
    ₹754 Cr
    YoY +32%
  • EBITDA
    ₹218 Cr
    YoY +76%
  • EBITDA Margin
    29%
  • PAT
    ₹130 Cr
    YoY +101%
  • Cash PAT
    ₹166 Cr
    YoY +73%

What they filed

Q1 FY27: revenue up 13.8%, net profit up 17.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue192 198 218 247 257 +34%250 +26%237 +9%281 +14%
EBITDA40 46 54 68 79 +98%66 +43%66 +22%83 +22%
Net profit22 25 29 41 51 +132%37 +48%40 +38%48 +17%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹1,004 Cr Total
  • Consumer (9M FY26) ₹409 Cr 40.7%
  • Healthcare (9M FY26) ₹280 Cr 27.9%
  • Consumer (Q3 FY26) ₹123 Cr 12.3%
  • Healthcare (Q3 FY26) ₹104 Cr 10.4%
  • Industrial (9M FY26) ₹65 Cr 6.5%
  • Industrial (Q3 FY26) ₹23 Cr 2.3%

Order book

medium confidence

Total value

91.25 million_units

as of 2025-12-31 quantified

Execution

Abu Dhabi capacity commitments anticipated to be 18 months out from now.

Composition

Mix 2 geographies
  • India (existing lines) 50 million_units 54.8%
  • Abu Dhabi (new facility) 41.25 million_units 45.2%

Share of order book by geography, derived from disclosed amounts

Pipeline

other

Potential for innovator pens

Capacity expansions in India are largely backed by commercial contracts, while Abu Dhabi expansion has 50-60% capacity commitments secured, with full backing anticipated within 18 months.

Source: Q&A

Capital allocation

high confidence
  • Capex Capex disclosed mix of internal accruals and debt
    • New scalable facility in Abu Dhabi for pen/auto-injectors ₹300 Cr
    The planned investment is in the range of AED130 million to AED150 million, translating to about INR300 crores to INR350 crores to build a capacity of approximately 75 million pen injectors -- pen/auto-injectors per year... So I'll probably answer the first part of the question in terms of funding. We basically look at funding it by a mix of internal accruals and debt.
  • Debt Debt disclosed
    Our debt to equity stands at 0.3x and fixed asset turnover ratio at 2.0x as on 31st December 2025.

Guidance & targets

Capacity Operationalization

  • Abu Dhabi Facility Operationalization Capacity Operationalization · Q4 FY28 · High confidence Q4 FY28
    We expect this facility to be operational by Q4 FY '28, significantly scaling our global manufacturing footprint in GLP-1 and other advanced therapies.

    — Amit Sanghvi

  • First New Line Qualification (India) Capacity Operationalization · Feb 2026 · High confidence next week (from Feb 13, 2026)
    The first line is going through operational qualification, should be completed next week and then we'll go into supply immediately after.

    — Amit Sanghvi

  • Second New Line Arrival (India) Capacity Operationalization · Q1 FY27 · High confidence end of April, beginning of May '26
    The second line is scheduled to arrive in end of April, beginning of May '26.

    — Amit Sanghvi

  • Second New Line Commercialization (India) Capacity Operationalization · Q2 FY27 · High confidence end of July '26
    So it will get commercialized by end of July '26.

    — Amit Sanghvi

Commercial Production

  • Commercial Production from New Line (India) Commercial Production · March 2026 · High confidence March onwards
    Yes. We will have some commercial production in March, but we'll do the proper scale-up from April.

    — Amit Sanghvi

  • Consumer Electronics Supply Commencement Commercial Production · Q4 FY26 / Q1 FY27 · High confidence fourth quarter end of the 1Q
    So most likely, you're saying the supply will probably begin fourth quarter end of the 1Q. Can we assume that? That's also my assumption at the moment.

    — Amit Sanghvi

  • Semiconductor Casings Supply Commercial Production · FY27 · Medium confidence small quantities in the new FY
    We should see some small quantities in the new FY for sure.

    — Amit Sanghvi

  • Consumer Electronics Segment Live Commercial Production · Within 12-18 months from Feb 2026 · Medium confidence over the next 12 to 18 months
    Okay. And when we are expecting this consumer electronics segment coming live? Hopefully, over the next 12 to 18 months.

    — Amit Sanghvi

Capacity Utilization

  • Existing India Lines Full Utilization Capacity Utilization · Within 12-24 months from Feb 2026 · High confidence within 12 to 24 months
    Yes. So basically, you're saying that 50 million is fully backed. But the point is we should be fully utilized in 12 to 24 months, right? 24 months. Yes.

    — Amit Sanghvi

Capacity Commitment

  • Abu Dhabi Capacity Commitment Capacity Commitment · Anticipated 18 months out from Feb 2026 · High confidence around 50% to 60%
    The Abu Dhabi expansion, I would say, is somewhere around 50% to 60% secured in terms of capacity commitments, not fully, but it's anticipated to be 18 months out from now.

    — Amit Sanghvi

Supply Commencement

  • GLP-1 Injectors Supply Supply Commencement · Q3 FY26 · High confidence last quarter itself
    We've already started supplying in the last quarter itself for commercial launches, which are planned in Canada, Brazil, India, Middle East, Turkey. So supplies have already started.

    — Amit Sanghvi

Volume

  • Pens Volume (FY26) Volume · FY26 · High confidence around 30 million odd (slightly lower)

    Previously around 30 million odd → around 30 million odd (slightly lower)

    On the pens' guidance in terms of volumes which you had given probably at the start of this financial year of almost around 30 million odd, would you retain that guidance for FY '26? Yes. And it will be a little lower given our qualification activities are delayed by 3 months. So it will be slightly lower, but generally... It's the same. Broadly it's the same, right? Yes.

    — Amit Sanghvi, Sanjay Shah

Pricing

  • Price Erosion Pricing · High confidence 10% to 15%
    We've seen essentially 10% to 15% price erosion on those numbers.

    — Amit Sanghvi

  • Price Stabilization Pricing · after the first 24 months of supply · Medium confidence stabilize
    So to be honest, yes, we anticipate some further price erosion, but it will probably stabilize after the first 24 months of supply.

    — Amit Sanghvi

Capacity

  • UAE Capacity per line Capacity · Annual · High confidence 25 million to 28 million pens or devices per year
    each line is capable of producing somewhere around 25 million to 28 million pens or devices per year, largely automated.

    — Amit Sanghvi

Innovator Potential

  • Innovator Pens Potential Innovator Potential · Medium confidence 50 million pens to 100 million pens
    We think at a minimum 50 million pens to 100 million pens is the potential for innovators to come in.

    — Amit Sanghvi

What to watch in Q4 FY26

First New Line Qualification Completion (India)

Next week (from Feb 13, 2026)
Current Undergoing qualification, 30% rejection rate
Target Completed, ready for supply

Why it matters

Essential for ramping up GLP-1 injector supply and meeting customer demand, directly impacting revenue growth.

The first line is going through operational qualification, should be completed next week and then we'll go into supply immediately after.

Risks & concerns

  • Qualification Delays for New High-Speed Lines

    high

    The high-speed line for GLP-1 injectors is still undergoing complex qualification, causing delays and impacting the ramp-up of supply, with a current 30% rejection rate.

    Management acknowledged

  • Consumer Business Demand Slowdown

    medium

    The consumer segment experienced a 13% degrowth in Q3 FY26 due to overall demand slowdown in Europe and the U.S., with recovery dependent on macro-economic improvements.

    Management acknowledged

  • Pricing Pressure in Healthcare Segment

    medium

    The company has observed 10-15% price erosion on high-volume healthcare contracts, though stabilization is expected after the first 24 months of supply.

    Management acknowledged

  • Income Recognition Delays

    low

    Some income from licensing platforms was not booked in Q3 FY26 due to delays in customer confirmations, despite related costs being incurred, but is expected in Q4.

    Management acknowledged

Q&A highlights

6 direct
New Line Operationalization & Commercial Production Timelines Direct
The first line is going through operational qualification, should be completed next week and then we'll go into supply immediately after. The second line is scheduled to arrive in end of April, beginning of May '26. So it will get commercialized by end of July '26.

Clarifies the specific timelines for new capacity in India to become operational and contribute to revenue.

Asked by Shaleen Kumar

GLP-1 Injectors Supply Status and Bottlenecks Direct
We've already started supplying in the last quarter itself for commercial launches, which are planned in Canada, Brazil, India, Middle East, Turkey. So supplies have already started. We're struggling right now because our high-speed line is still not up and running.

Confirms that GLP-1 supply has commenced but highlights ongoing challenges with high-speed line qualification, indicating potential for faster ramp-up once resolved.

Asked by Shaleen Kumar

Consumer Business Degrowth and Rebound Outlook Partial
So when you look at the consumer business, the consumer business, we have seen some decline because of overall demand slowdown, which is happening in Europe and U.S. As and when economy improves there, I think we should see a rebound.

Explains the external macro-economic factors driving the consumer segment's degrowth and links its recovery to broader market improvements.

Asked by Vishal Manchanda

Strategic Rationale and Funding for Abu Dhabi Facility Direct
On the rationale for the UAE plant, if you look at the business for healthcare, particularly, we import resin. We import equipment and in Shaily's case, we're also importing people, right? So key senior engineering talent within Shaily running the healthcare business are expats... So there's a lot of benefit of being here. I never wanted to mention this, but we lost out on a particular very large contract a year ago when Operation Sindoor happened just because the customer saw risk in their clinical program.

Provides detailed strategic reasons for global expansion, including cost, talent, and business continuity, and confirms funding will be a mix of internal accruals and debt.

Asked by Harshh Shah

Complexity of High-Speed Line Qualification Direct
So it's a very complex piece of equipment. So you have to qualify each and every operation separately. And then you have to qualify the whole thing together, right? So we're at a stage right now where we've been running the line at 60 parts per minute, 70 parts per minute. We getting high levels of rejection, 30% rejection and that doesn't have to do with the quality of the product, but has to do with the settings of why the machine is rejecting it.

Offers insight into the technical challenges and reasons behind the delays in qualifying new high-speed production lines, which are critical for scaling healthcare volumes.

Asked by Ritesh Shah

Pricing Erosion and Stabilization in Healthcare Direct
We've seen essentially 10% to 15% price erosion on those numbers... So to be honest, yes, we anticipate some further price erosion, but it will probably stabilize after the first 24 months of supply.

Quantifies the current pricing pressure in the high-volume healthcare segment and provides a timeline for expected stabilization, which is key for margin outlook.

Asked by Kunal Bhatia

Semiconductor Casings Commercialization Timeline Partial
Look, plants in India are still are not up, So the chip manufacturing companies are not fully up and operational. I think it's going to likely be 12 months before they come up. We should see some small quantities in the new FY for sure.

Indicates that significant commercialization of semiconductor casings is contingent on the broader ramp-up of chip manufacturing in India, pushing substantial revenue contribution further out.

Asked by Shaleen Kumar

Consumer Electronics Segment Go-Live Timeline Direct
Okay. And when we are expecting this consumer electronics segment coming live? Hopefully, over the next 12 to 18 months.

Provides a forward-looking timeline for the consumer electronics segment to start contributing meaningfully to revenue.

Asked by Nirali Gopani

3 min read 6 chapters

Detailed narrative

Robust Q3 FY26 Performance Driven by Healthcare Segment

Shaily Engineering Plastics reported strong financial results for Q3 FY26, with revenue increasing 27% year-on-year to INR 251 crores. EBITDA grew even faster at 43% year-on-year, reaching INR 66 crores, which resulted in a significant EBITDA margin expansion of 310 basis points to 26.5%. The Healthcare segment was the primary growth engine, doubling its contribution to the overall revenue mix to 42% and achieving a 139% year-on-year revenue growth to INR 104 crores in the quarter.

Strategic Global Expansion with New Abu Dhabi Facility

The company announced a major strategic move to establish a new scalable facility in Abu Dhabi for manufacturing pen and auto-injectors. This planned investment, ranging from AED 130 million to AED 150 million (INR 300-350 crores), aims to build a capacity of approximately 75 million pen/auto-injectors per year. Expected to be operational by Q4 FY28, this facility will substantially increase Shaily's total pen injector capacity to 150 million units from the current 80 million units per year, enhancing its global footprint in GLP-1 and other advanced therapies.

Capacity Expansion and Operational Timelines in India

Shaily is actively expanding its capacity in India, with the first of two new 25 million unit lines currently undergoing operational qualification and expected to be completed next week. Commercial production from this line is anticipated to begin in March, with a proper scale-up from April. The second new line is scheduled to arrive by end of April/beginning of May 2026 and is expected to be commercialized by end of July 2026, contributing to India's total pen injector capacity of 80 million units.

Mixed Segment Performance and New Business Developments

While the Healthcare segment demonstrated exceptional growth, the Consumer segment experienced a 13% year-on-year degrowth in Q3 FY26, with revenue at INR 123 crores, primarily due to demand slowdowns in Europe and the U.S. In contrast, the Industrial segment grew 87% year-on-year to INR 23 crores, driven by new client additions for power tool components and LED lighting applications. The company has also onboarded two new customers for GLP-1s and signed two new contracts for pen injector manufacturing.

Qualification Challenges and Pricing Dynamics in Healthcare

The company is navigating complexities in qualifying its new high-speed lines, which are currently experiencing a 30% rejection rate due to machine settings, causing delays in ramping up GLP-1 injector supply. Furthermore, the healthcare segment has faced 10-15% price erosion on high-volume contracts, although management anticipates stabilization after the first 24 months of supply. Some income recognition for Q3 FY26 was deferred to Q4 FY26 due to delays in customer confirmations, despite associated costs being incurred.

Leadership Appointment and Future Growth Avenues

To bolster its Healthcare division, Shaily appointed Mr. Joe Kam as Chief Operating Officer, effective March 1, 2026, leveraging his 20+ years of experience in regulated manufacturing. Beyond pen injectors, the company is exploring opportunities in semiconductor casings, expecting small quantities of supply in the new fiscal year, contingent on the ramp-up of chip manufacturing plants in India. The consumer electronics segment is also projected to go live within the next 12 to 18 months, indicating diversified growth avenues.

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