Standard Engineering Technology has approved a total investment of approximately ₹487 crore to acquire up to a 51% equity stake in GScale Energy Private Limited, marking its strategic entry into the AI datacenter engineering sector. The transaction, valued at ₹190 crore for the initial stake, is funded through a combination of ₹125 crore in cash and ₹65 crore via a share swap. This move leverages the company's strong financial position, including approximately ₹220 crore in cash and liquid assets and a CRISIL rating of A/Positive as of April 2026, to capitalize on the projected $40–50 billion AI datacenter capex in India by 2030.

Key Transaction Details

The following table outlines the key parameters of the approved investment programme:

Strategic Rationale and Operational Roadmap

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. Upon completion, GScale Energy Private Limited will become a subsidiary, creating a two-platform engineering company where Standard Engineering Technology serves the Pharma & Chemical sectors while GScale focuses on AI Datacenter Infrastructure.

GScale Energy is advancing rapidly with a 3 lakh sq ft factory scheduled to be operational from November 2026. The company has already placed orders for major plant and machinery, onboarded key engineering teams, and completed over 80% of product design. Letters of Award with leading datacenter clients are in final-stage closure. The facility is designed for giga-watt scale production of power and cooling equipment, addressing a critical bottleneck where most such infrastructure is currently imported.

Financial Outlook and Guidance

Standard Engineering Technology reported FY2026 revenue of approximately ₹793 crore with an EBITDA margin of approximately 17.40%. 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. The entire ₹487 crore programme is self-funded from internal accruals, requiring no new debt.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0M4D01010/2dffb39c891c4d8a.pdf

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: