Multibagger Stock Reports 62% Revenue Growth in Q2 FY27 as GScale Commercial Ramp Nears; Receives Significant CDMO Orders with Strong Future Visibility

Standard Engineering Technology Limited is expanding beyond its established process-equipment franchise in pharmaceuticals and chemicals into integrated engineering and data centre infrastructure. The company has now reported a 62.3 per cent YoY rise in total revenue to Rs 296.6 crore for the quarter ended September 30, 2026, as its core engineering business maintained momentum and the new GScale venture approached commercial operations.

Earnings before interest, Tax, depreciation and amortisation, or EBITDA, increased 79.7 per cent YoY to Rs 51.4 crore in the second quarter of FY27. The EBITDA margin stood at 17.3 per cent, broadly in line with the 17.4 per cent margin reported on a consolidated basis for FY26. Profit after tax rose 37.9 per cent to Rs 28.2 crore, indicating that profit growth, while strong, trailed the expansion in revenue and operating profit.

For the first half of FY27, total revenue grew 53 per cent YoY to Rs 544.3 crore. EBITDA rose 56.5 per cent to Rs 91 crore, while profit after tax increased 32.2 per cent to Rs 54.9 crore. The company said demand was being supported by its integrated engineering offering for pharmaceutical, chemical, biotechnology, food, beverage and artificial intelligence data centre customers.

Management highlighted rising orders from contract development and manufacturing organisations, or CDMOs, which are an important demand driver for specialised pharmaceutical equipment. SETL also said export enquiries from the United States and Europe had increased, although international business will depend on converting these discussions into executable orders.

The company has completed the first phase of its GL Hakko partnership by acquiring a 19.19 per cent stake. The collaboration is intended to deepen its glass-lining technology and advanced engineering capabilities, which are relevant for corrosion-resistant process equipment used in specialised chemical and pharmaceutical applications.

Attention will also be on GScale, SETL's data centre infrastructure business. Machinery for its Secondary Fluid Network operations has been ordered and equipment deliveries have begun, with revenue generation scheduled from December 15, 2026. Power-product machinery orders have also been completed, with deliveries expected from November 15 and production planned from January 15, 2027. GScale is targeting revenue of more than Rs 250 crore in the fourth quarter of FY27, which remains a management target dependent on commissioning and customer execution.

As of 3:53 pm on November 5, 2026, Standard Engineering Technology shares were trading at Rs 396.85. The stock was down 4.99 per cent from the previous close and remained below its 52-week high of Rs 468.10. Even so, the shares had gained 132.64 per cent over one year, compared with a 4.13 per cent decline in the BSE 500 over the same period. The company's market capitalisation stood at about Rs 8,435 crore.

What This Means for Investors

The quarterly performance supports SETL's case that its wider engineering platform is gaining traction beyond traditional glass-lined and metal process equipment. Strong CDMO demand and the company's established pharmaceutical and chemical presence provide a revenue base, while the GL Hakko relationship could improve access to differentiated products. GScale is the more consequential near-term catalyst because its targeted fourth-quarter revenue is large relative to the company's existing scale. Its commissioning timetable will therefore be closely watched.

The development is supportive for earnings visibility, but the new data centre business must convert equipment delivery, production readiness and customer engagements into billed revenue. Execution quality, project working capital and margins will matter as the business mix changes. SETL's trailing price-to-earnings multiple of 98.63 times indicates that the market already places a substantial value on sustained growth and successful diversification. Continued delivery in the core engineering business, alongside evidence that GScale can scale commercially, will be important for maintaining that expectation.

Disclaimer: The article is for informational purposes only and not investment advice.