The board of Standard Engineering Technology has approved the acquisition of up to a 51% equity stake in GScale Energy Private Limited for a total consideration of ₹190 crore. This strategic move marks the company's entry into the AI datacenter engineering sector, funded through a combination of ₹125 crore in cash and ₹65 crore via a share swap. The transaction is subject to the fulfilment of conditions under definitive agreements, including a Shareholder Agreement and Share Subscription Agreement.

Key Transaction Details

The following table outlines the key parameters of the approved acquisition:

Strategic Rationale and Impact

The acquisition provides immediate access to GScale's domain expertise, including a track record of 486 MW delivered and 1 GW+ under execution. It positions Standard Engineering Technology to capture a market opportunity projected at $5.2–6.7 trillion in global AI datacenter capex by 2030, with $40–50 billion expected in India. Upon completion, GScale Energy Private Limited will become a subsidiary of the company.

The board-approved deal creates a two-platform engineering company, with Standard Engineering Technology continuing to serve the Pharma & Chemical sectors while GScale focuses on AI Datacenter Infrastructure. The transaction is expected to be completed within 90 days from the date of the agreement. The company has also approved a total investment of approximately ₹500 crore to be deployed across equity acquisition, capacity expansion, and working capital for the combined business.

Financial Outlook and Guidance

Standard Engineering Technology reported FY2026 revenue of approximately ₹793 crore with an EBITDA margin of approximately 17.40%. The company holds approximately ₹220 crore in cash and liquid assets and holds a CRISIL rating of A/Positive as of April 2026. Management is targeting approximately 40–50% revenue growth in existing operations for FY2027.

Regarding the new vertical, manufacturing operations are expected to commence from November 2026. Consequently, FY2027 will capture only approximately four months of contribution from this business, with management targeting revenue in the range of ₹250 crore from this vertical, subject to project execution timelines.

Standard Engineering Technology Limited has confirmed that its promoters, promoter group, and persons acting in concert have not pledged or encumbered any shares held by them during the financial year 2025-26. The disclosure ensures that the shareholding structure remains free from undisclosed charges, providing transparency to shareholders regarding the ownership stability of the company's key stakeholders.

The declaration was submitted to the BSE Limited and the National Stock Exchange of India Limited on April 04, 2026, by Nageswara Rao Kandula, Promoter and Managing Director. This filing was made in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, which mandates periodic disclosures regarding share encumbrances by promoters.

The annexure accompanying the declaration lists 62 entities and individuals classified as either promoters or members of the promoter group. The list includes key individuals such as Nageswara Rao Kandula, Ramakrishna Kandula, and Krishna Veni Kandula, as well as various group entities like S2 Engineering Services, Standard Holdings, and Synergen Solutions.

The complete list of promoters and promoter group entities who have confirmed the absence of encumbrances is detailed below: