Standard Glass Lining Technology Limited (SGLTL) has reported robust financial results for the first half of fiscal year 2026, despite facing some challenges in export shipments. The company also announced plans for strategic expansion and a proposed name change to reflect its evolving business model.

Financial Highlights

For H1 FY26, SGLTL reported:

The company faced export shipment deferrals worth INR 40.00-45.00 crores from H1 to H2 due to delayed customer inspections, which impacted the quarterly performance.

Strategic Developments

Proposed Name Change

SGLTL has proposed changing its name to Standard Engineering Technology Limited, subject to shareholder approval. This change aims to reflect the company's evolution from a specialized equipment manufacturer to a comprehensive engineering solutions provider.

Acquisition of C2C Engineering

The company is acquiring a 51% stake in C2C Engineering Private Limited for INR 12.25 crores. This acquisition is expected to integrate process design and engineering capabilities, enhancing SGLTL's ability to offer end-to-end solutions.

Capacity Expansion

SGLTL is investing in a new manufacturing facility:

• 36-acre land acquired
• Planned investment of INR 120.00-130.00 crores
• 6,00,000 square feet facility
• Increased crane capacity from 60 tons to 100 tons
• Enhanced fabrication capabilities from 60 mm to 100 mm thickness

The new facility is expected to be completed in 14-18 months.

Business Outlook

• Current order book stands at INR 750.00-800.00 crores
• The company expects 20-25% growth for the year
• Glass lining contributes 35% of revenue, with metal equipment making up the rest
• Exports are projected to reach 12-13% of total revenue for the year

Product Innovation

SGLTL has introduced shell and tube glass-lined heat exchangers, developed in partnership with GL Hakko of Japan. These heat exchangers offer significant advantages over traditional graphite heat exchangers:

• Longer lifespan (15 years compared to 2-3 years for graphite)
• Higher price point (approximately double the cost of graphite exchangers)
• Particle-free operation, crucial for pharmaceutical and chemical industries

The company plans to ramp up production of these heat exchangers to 300 units per month by April 2026.

Market Trends

• Strong demand from large pharmaceutical companies (revenue > INR 2,000.00 crores)
• Slower capex spending from smaller pharma firms (revenue < INR 500.00 crores)
• Increasing interest from agrochemical sector, with two major clients added recently

SGLTL's Managing Director, Mr. Nageswara Rao Kandula, expressed confidence in the company's growth trajectory, stating, "We have built something very unique in today's industrial world, a company that can design, engineer, process, manufacture, automate, install, commission, and validate complex projects with complete in-house control."

As Standard Glass Lining Technology Limited continues its transformation into a comprehensive engineering solutions provider, investors will be watching closely to see how these strategic moves translate into long-term value creation.

About Standard Glass Lining Technology Limited

Standard Glass Lining Technology Limited is an Indian engineering company specializing in the design, manufacture, and supply of glass-lined equipment and comprehensive engineering solutions for the pharmaceutical, chemical, and process industries. With its proposed name change and recent acquisitions, the company is positioning itself as a leader in precision engineering and turnkey project solutions.

Standard Glass Lining Technology Limited (SGLTL) has reported robust financial performance for the first half of fiscal year 2026, along with significant strategic moves to strengthen its market position.

Financial Highlights

SGLTL demonstrated solid growth in H1FY26, with total income reaching ₹366.40 crore, marking a 17.4% year-on-year increase from ₹312.10 crore in H1FY25. The company's financial performance for the period is summarized in the table below:

For Q2FY26, the company reported revenue of ₹188.20 crore, showing a 5.6% sequential growth from the previous quarter.

Strategic Acquisitions and Expansion

SGLTL has made significant strides in expanding its capabilities and market reach:

1. Acquisition of Scigenics: The company's subsidiary, Standard Scigenics Pvt. Ltd., signed definitive agreements to acquire the business of Scigenics (India) Pvt. Ltd. for ₹9.00 crore. This acquisition integrates 34+ years of bioreactor expertise with SGLTL's engineering capabilities.

2. Proposed Acquisition of C2C Engineering: SGLTL plans to acquire a 51% stake in C2C Engineering Pvt. Ltd., a multidisciplinary EPC and consulting firm. This move aims to strengthen the company's front-end design and engineering capabilities.

3. Name Change and Business Expansion: The company received approval to change its name to "Standard Engineering Technology Limited," reflecting its transition into a concept-to-commissioning precision engineering enterprise.

Operational Highlights

• The company plans a capex of ₹130.00 crore over the next 2-3 years for facility expansion of 5.5 lakh square feet.
• Export dispatches worth ₹40.00-45.00 crore were deferred to Q3-Q4FY26.
• SGLTL maintained a healthy EBITDA margin of 18.8% in H1FY26 despite an unfavorable product mix and lower exports.

Management Commentary

Kandula Nageswara Rao, Promoter and Managing Director, stated, "Our second quarter demonstrates continued strong sales growth and healthy financial performance. The acquisitions of Scigenics and C2C Engineering strengthen our end-to-end capabilities and global relevance."

Venkata Mohana Rao Katragadda, Promoter and Executive Director, added, "With a healthy order pipeline, robust export demand, and expanding capabilities across biotechnology and process industries, we are well positioned for sustained growth and enhanced operational excellence in the coming quarters."

SGLTL's strategic moves and strong financial performance indicate its commitment to becoming a comprehensive CDMO solutions provider, capitalizing on the growing demand in the pharmaceutical and chemical industries. The company's focus on expanding its manufacturing capabilities and diversifying its product portfolio positions it well for future growth in both domestic and international markets.