Key Highlights
- Total income increased 41.5% YoY to ₹252.2 crore
- EBITDA rose 27.3% YoY to ₹44.1 crore with EBITDA margin at 17.5%
- Profit Before Tax increased 26.5% YoY to ₹36 crore
- Profit After Tax grew 26.6% YoY to ₹26.7 crore
- Proposed acquisition of up to 51% stake in GScale Energy to enter AI datacenter infrastructure
- Announced ₹500 crore self-funded capital programme for AI datacenter business
- Invested ₹71.5 crore for an initial 19.19% stake in Japan’s GL Hakko with option to increase to 51.07%
- Board approved preferential allotment of approximately ₹136.5 crore to support expansion and strategic investments
Standard Engineering Technology Limited (SETL) reported strong financial performance for the first quarter of FY27, with growth in revenue, profitability and operating earnings. The company also announced strategic initiatives aimed at expanding into the AI datacenter infrastructure sector while strengthening its global technology capabilities through an investment in Japan.
For the quarter ended June 2026, the company reported total income of ₹252.2 crore, up 41.5% year-on-year (YoY). EBITDA increased 27.3% YoY to ₹44.1 crore, while profit after tax (PAT) rose 26.6% YoY to ₹26.7 crore.
Alongside its quarterly results, the company unveiled plans to diversify its engineering business through investments in AI datacenter infrastructure and advanced glass-lining technology.
Financial Performance
The company’s total income increased to ₹252.2 crore in Q1 FY27 from the corresponding quarter last year, reflecting continued growth in its core engineering operations.
Operating performance also improved during the quarter, with EBITDA rising 27.3% YoY to ₹44.1 crore. The company reported an EBITDA margin of 17.5%.
Profit Before Tax (PBT) stood at ₹36 crore, representing an increase of 26.5% YoY, while PAT climbed 26.6% YoY to ₹26.7 crore. The company stated that earnings growth was supported by its established engineering businesses while continuing investments in new growth initiatives.
Expansion into AI Datacenter Infrastructure
During the quarter, Standard Engineering Technology announced its proposed acquisition of up to a 51% equity stake in GScale Energy Private Limited, marking its entry into India’s AI datacenter infrastructure market.
According to the company, the proposed transaction is expected to support the development of an integrated engineering and manufacturing platform for AI datacenters. The planned platform would offer solutions across power distribution, backup power systems, liquid and air-cooling infrastructure, prefabricated engineering modules and turnkey datacenter delivery.
The company also indicated that it plans to undertake an approximately ₹500 crore self-funded capital programme for the new business.
Investment in GL Hakko, Japan
SETL also announced a strategic investment of ₹71.5 crore to acquire an initial 19.19% equity stake in GL Hakko Co., Ltd., Japan, with the option to increase its holding to 51.07% over the next three years at the same pre-agreed valuation.
The company said the partnership is expected to provide access to advanced glass-lining technologies, including conductive glass, glass-lined shell-and-tube heat exchangers and semiconductor-grade process equipment.
The collaboration is also expected to support GL Hakko’s planned manufacturing expansion while broadening SETL’s technology portfolio and international market presence.
Capital Raising Plans
To support its long-term growth strategy, the board approved a preferential allotment of approximately ₹136.5 crore.
The fundraising includes around ₹71.5 crore through a cash issue to strategic investors AGI Group Holdings Inc. (Japan) and Monofuls Pte. Ltd. (Singapore), along with approximately ₹65 crore through a share swap with Truplusco India LLP as part of the proposed GScale transaction.
The company stated that the capital infusion is intended to strengthen its balance sheet while supporting its expansion into AI datacenter infrastructure, subject to necessary shareholder and regulatory approvals.
Growth Outlook
The company said its future growth strategy is based on two business engines—its established engineering operations and the newly proposed AI datacenter infrastructure business.
Management indicated that the core engineering segment is expected to continue expanding, while the new datacenter business is targeted to become an additional growth contributor as the company diversifies its revenue base.