Shaily Engineering Plastics Limited has secured a major contract worth approximately ₹423.00 crores from a large domestic pharmaceutical company for the manufacturing and supply of pen injectors. The company announced this significant business development through a regulatory filing under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Contract Overview

The Manufacturing & Commercial Supply Agreement establishes a comprehensive framework for pen injector production and delivery over an extended timeline. The contract details are as follows:

Strategic Impact

The contract represents a substantial addition to Shaily Engineering Plastics' order book and reinforces the company's capabilities in pharmaceutical device manufacturing. The four-year supply period provides revenue visibility and strengthens long-term customer relationships in the healthcare sector.

The agreement involves a domestic pharmaceutical entity, indicating strong demand within India's growing pharmaceutical market. While the customer's identity remains confidential due to contractual obligations, the partnership with a large domestic pharma company demonstrates Shaily's credibility in the specialized pen injector manufacturing segment.

Compliance and Independence

The company has confirmed that this contract does not involve any related party transactions, ensuring arm's length commercial terms. Additionally, the promoter group has no interest in the entity that awarded the contract, maintaining independence in the business relationship.

This significant contract win positions Shaily Engineering Plastics to capitalize on the expanding pharmaceutical device market while leveraging its manufacturing expertise in precision medical components.

Shaily Engineering Plastics Limited delivered strong financial performance in Q3FY26, demonstrating significant growth across key metrics while announcing strategic expansion plans to strengthen its global manufacturing footprint in the healthcare segment.

Financial Performance Highlights

The company reported robust revenue growth of 27% year-on-year, with total revenue reaching INR251 crores in Q3FY26 compared to INR198 crores in Q3FY25. EBITDA performance was particularly impressive, growing 43% year-on-year to INR66 crores with margins expanding by 310 basis points to 26.50%.

For the nine-month period FY26, the company maintained strong momentum with revenue of INR754 crores (up 32% year-on-year) and EBITDA of INR218 crores (up 76% year-on-year). The company's ROCE and ROE stood at 38.40% and 29.10% respectively as of December 31, 2025.

Segment-wise Performance

The healthcare segment emerged as the primary growth driver, with revenue surging 139% to INR104 crores in Q3FY26 compared to INR44 crores in Q3FY25. This segment now contributes 42% to the overall revenue mix, doubling from the previous year and reflecting the increasing scale of this business vertical.

The consumer segment experienced a decline of 13% to INR123 crores, while the industrial segment showed strong growth of 87% to INR23 crores during the quarter.

Strategic Abu Dhabi Expansion

The company announced plans to establish a new scalable facility in Abu Dhabi for manufacturing pen and auto-injectors, representing a strategic move to build capacity in the fast-growing drug delivery segment. The facility details include:

This expansion will place the company in close proximity to international clientele and significantly scale the global manufacturing footprint in GLP-1 and other advanced therapies. The company is in discussions with the Abu Dhabi government for potential financial support.

Leadership Strengthening and Business Development

The company appointed Joe Kam as Chief Operating Officer of Healthcare division effective March 1, 2026. Kam brings over 20 years of international experience in manufacturing and operations across highly regulated industries, having previously held senior leadership roles at SHL in Taiwan managing device manufacturing operations across seven sites.

During the quarter, the company onboarded two new customers for GLP-1s and signed two additional contracts with Global Pharma for pen injector manufacturing and supply. The consumer segment received a new product mandate from an existing home furnishings customer, while the industrial segment commenced supplies of power tool components for a new client and added LED lighting applications.

Operational Metrics and Export Performance

The company processed 5,541 tonnes of polymers in Q3FY26 compared to 6,308 tonnes in Q3FY25, representing a 12% decline. However, for the nine-month period, polymer processing grew 4.40% to 19,209 tonnes versus 18,396 tonnes in the previous year. Machine utilization remained relatively stable at 47.10% in Q3FY26.

Exports continued to demonstrate strength, contributing approximately 71% of total revenue in both Q3FY26 and the nine-month period. The company maintains a disciplined approach to capital utilization with a debt-to-equity ratio of 0.3x and fixed asset turnover ratio of 2.0x as of December 31, 2025.