Q1 2026 Shaily Engineering Plastics Ltd Earnings Call Transcript
Key Points
- Shaily Engineering Plastics Ltd (BOM:501423) reported a strong revenue growth of 38% year-on-year to INR 247 crores in Q1 FY 2026.
- The company's EBITDA margin expanded by 840 basis points to 28.5%, showcasing improved profitability.
- The healthcare segment showed significant growth, with revenues increasing by 181% year-on-year, contributing 31% to the overall revenue mix.
- The company is expanding its capacity with the installation of 19 injection molding machines and plans to add an additional 25 million pens capacity per annum by the end of Q2 FY 2026.
- Shaily Engineering Plastics Ltd is investing INR 125 crores in CapEx for capacity expansion, expected to be completed between the end of FY 2026 and the beginning of FY 2027.
- The industrial segment experienced a minor decline in revenue, with a decrease from INR 19.2 crores in Q1 FY 2025 to INR 18.1 crores in Q1 FY 2026.
- There is uncertainty regarding the full utilization of the new capacity by FY 2027, as it depends on customer approvals and market demand.
- The company faces potential challenges in scaling up its consumer electronics business due to economic uncertainties in Europe and tariff issues.
- Shaily Engineering Plastics Ltd has not yet secured advances from customers for CapEx, relying instead on business agreements for volume commitments.
- The company is cautious about expanding beyond 100 to 200 million pen capacity due to long lead times for machinery setup and prefers a conservative approach.
Good evening and a very warm welcome to all the participants to the post quarter one FY 2026 investor call of Shaily. I have with me Mr. Sanjay Shah, Chief Strategy Officer, and SGA, our Investor Relations Advisors. I hope you've had a look at our investor presentation that is uploaded on our website as well as the Stock Exchange.
Let me start with giving some highlights on the operational performance and business overall. In quarter one, we have delivered strong revenue growth of 38% year on year to INR247 cores with the IDA margin expanding by 840 basis points to 28.5%. The growth is attributable. Attributable to improved traction in our healthcare segment which shows a growth of 181% year on year to 77%. The healthcare segment's contribution to the overall revenue mix has doubled to 31%.
Now giving a brief on business. In the healthcare segment, in response to increased customer demand, we have installed a capacity which consists of 19 injection molding machines, an assembly line, and a printing
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