SETL Sees Strong Q3, 9M FY26 Growth on Integrated Engineering Push

For the nine months ended FY26, the company’s total income stood at ₹562 crore, registering a year-on-year growth of 23.6%. EBITDA rose 11.9% YoY to ₹102 crore, with margins at 18.2%. Profit before tax increased 15.9% to ₹83 crore, while profit after tax grew 18.8% YoY to ₹62 crore, translating into a PAT margin of 11%.

The third quarter emerged as a standout period, with total income rising 37.1% YoY to ₹196 crore. EBITDA for Q3 FY26 increased 17% to ₹34 crore, while PBT and PAT grew 22.7% and 28.3% respectively to ₹27 crore and ₹20 crore.

Commenting on the performance, Managing Director Mr. Nageswara Rao Kandula said Q3 and 9M FY26 marked a defining phase in the company’s evolution. “We have successfully transformed into an integrated engineering platform while continuing to scale our core glass-lining business at a strong pace. Our focus remains on execution excellence, technological leadership, and consistent value creation for shareholders,” he said.

Q3 FY26 also marked the formal completion of the company’s corporate name change to Standard Engineering Technology Limited. The management clarified that glass lining remains central to its business strategy and continues to be one of its fastest-growing verticals, with the rebranding reflecting expanded capabilities rather than a shift in focus.

Over the past few years, SETL has evolved from a product-centric manufacturer into a high-precision engineering company capable of delivering complex, multi-disciplinary projects with single-point responsibility from concept to commissioning.

During the quarter, the company completed two strategic acquisitions aimed at strengthening this integrated model. It acquired Scigenics (India) Private Limited, marking its entry into the bioprocess and fermentation systems segment, and a majority stake in C2C Engineering Private Limited, now renamed Standard C2C Engineering Private Limited. The latter brings in-house capabilities across process, mechanical, civil, HVAC, electrical, instrumentation, and automation engineering.

Glass lining continues to be a key growth and innovation driver. The company’s shell-and-tube glass-lined heat exchangers, developed in collaboration with Japanese partner GL Hakko, have seen strong market acceptance, with over 200 units in the order book and more than 100 units already delivered. These products are increasingly replacing graphite and alloy alternatives due to enhanced safety and lifecycle performance.

Another significant growth lever is conductivity glass-lined reactors. Multiple units have already been manufactured and deployed, with strong customer validation, particularly from regulated pharmaceutical applications. Based on this traction, the company plans to formally launch the technology in India and global markets from April 2027, with international partner IPP expressing interest in global sales.

The company noted that the Union Budget 2026, which increased allocations to the Department of Health and Family Welfare by nearly 10%, is expected to support sustained investment across pharmaceuticals, biotechnology, and advanced manufacturing—segments where SETL has growing exposure.

Exports currently account for around 15% of revenue, with approximately ₹30–35 crore deferred to Q4 FY26 due to statutory updates related to the company’s name change. Management expects strong order inflows in FY27, supported by a diversified order book, growing traction in turnkey engineering projects, and improving operating leverage.

To support long-term growth, the company has also received in-principle approval for an ESOP plan covering approximately 1% of its equity share capital, aimed at retaining critical technical and leadership talent.