Standard Engineering Technology Limited — Investor Meet, 20-05-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Standard Engineering Technology Limited hosted an earnings conference call to discuss the financial results for the fourth quarter and full year ended March 31, 2026. Management provided a business update and outlook, followed by an analyst Q&A session.

**Financial Performance:**

Full-year revenue reached INR 793 Cr, a 26.7% YoY increase. EBITDA was INR 138 Cr (17.4% margin), up 15.2% YoY. Profit Before Tax (PBT) stood at INR 111 Cr, an 18.9% YoY rise, while Profit After Tax (PAT) was INR 83 Cr, growing 21% YoY to a 10.5% margin. EPS improved to INR 4. Working capital days reduced from 174 to 150 days. Q4FY26 saw revenue of INR 231 Cr (35% growth), EBITDA of INR 36 Cr (26% growth, 15.5% margin), PBT of INR 29 Cr (28.4% growth), and PAT of INR 21 Cr (27.8% growth, 9.1% margin). Q4 EBITDA margins faced pressure from increased commodity prices.

**Management Commentary and Outlook:**

Management described FY26 as the best year in the company's history, highlighting broad-based improvements in revenue, profitability, cash flow, and working capital. The transformation into an integrated precision engineering and turnkey solutions provider is complete, offering multidisciplinary projects from concept to commissioning. Acquisitions of Scigenics and Standard C2C Engineering have enhanced capabilities. Investments in manpower are considered for future growth. The company expects FY27 to be an even stronger year, with EBITDA margins projected to improve.

**Order Book & Operational Updates:**

The current order book stands at approximately INR 1,000 Cr, with INR 30 Cr from exports. The company is expanding its manufacturing campus, with the first phase of the 36-acre facility expected to be operational by April 2027, adding INR 2,000 Cr capacity. Total manufacturing capability post-expansion is projected at INR 4,000 Cr. Shell and tube glass-lined heat exchangers have over 200 units in the order book, with 100 delivered. Conductivity glass-lining reactors are progressing well. The company is entering the nuclear sector.

**Analyst Q&A Highlights:**

Analysts inquired about the decline in gross margins in Q4, attributed by management to metal price increases and investments in manpower. Future EBITDA margins are expected to improve. Guidance for FY27 revenue growth is expected to be better than FY26. Capex for FY27 will be INR 65 Cr for the new facility, with a total planned investment of INR 130 Cr over two years. C2C Engineering targets INR 60 Cr revenue in FY27, and Scigenics also targets INR 60 Cr. Margins for these acquired businesses are similar to the company's overall margins. The company is focusing on providing solutions rather than just equipment to improve margins. The order book execution timeline is estimated at 8-10 months. Export revenue doubled in FY26 and is expected to grow further. Inventory, amounting to INR 438 Cr, is below 180 days aging and held to meet expected growth.

**Investor Angle:**

Management expressed confidence in continued strong growth driven by global demand for integrated engineering solutions and favorable structural tailwinds. Investments in people, technology, and infrastructure are aligned with ambitious growth plans. The company anticipates improved cash conversion and free cash flow generation in FY27.