Standard Glass Lining Technology Ltd

Target overview and ownership

• Target: GScale Energy Private Limited, AI datacenter engineering solutions, India.
• Incorporated May 15, 2026; first financial year FY 2026-27.
• Presence: India; MD Kasu Brahma Reddy.

Deal terms

• Total consideration approx Rs 190 crore; cash and share swap.
• Acquired stake up to 51% subject to regulatory approvals.
• Current holding 33.55% (50,495 shares); no change.
• GScale subsidiary status effective Sept 28, 2026.
• Board representatives from the Company appointed to GScale.

Rationale

• Rationale: access domain expertise and accelerate market entry into AI datacenters.
• Supports opportunity in global AI datacenter capex by 2030.

Background of target

• Target's business: integrated engineering platform for AI datacenter infra solutions.
• Incorporation: 15 May 2026; based in Hyderabad, Telangana.
• Turnover history: not disclosed; FY 2026-27 first year.
• Presence: India; MD Kasu Brahma Reddy.

Regulatory and timeline

• Up to 51% stake completion subject to regulatory approvals.
• Subsidiary status effective Sept 28, 2026.

Standard Engineering Technology Limited trading window closure from Oct 01, 2026 till 48 hours after the unaudited (Standalone & Consolidated) financial results for the quarter and half year ended Sep 30, 2026

Auditor Reappointment

• Reappointment of M S K A & Associates LLP as statutory auditors for a five-year term.
• Term from AGM 2026 to AGM 2031.

AGM details

• Date: 18 September 2026; time 11:00 AM to 12:49 PM IST.
• Mode: VC/OAVM with e-voting and on-day voting.
• Record date: 11 September 2026.
• Total shareholders on record: 55,072.
• Venue: Hyderabad.

Key resolutions

• Resolution 1: Adopt Audited Financial Statements (Standalone & Consolidated) for the year ended 31 March 2026.
• Resolution 2: Re-appoint Krishna Veni Kandula (DIN 02260233) on rotation.
• Resolution 3: Re-appoint Kandula Ramakrishna (DIN 05281520) on rotation.
• Resolution 4: Ratify remuneration payable to Cost Auditors for FY 2026-27.
• Resolution 5: Re-appoint M S K A & Associates LLP as Statutory Auditors.

Voting outcomes

• Resolution 1 passed; 100% in favour; 2 votes against.
• Resolution 2 passed; ~99.99% in favour; 2,802 against.
• Resolution 3 passed; ~99.99% in favour; 2,602 against.
• Resolution 4 passed; ~99.998% in favour; 2,565 against.
• Resolution 5 passed; ~99.999% in favour; 2 against.

Appointments & approvals

• Directors re-appointed: Krishna Veni Kandula and Kandula Ramakrishna.
• Statutory Auditor re-appointed: M S K A & Associates LLP.
• Cost Auditor remuneration ratified for FY 2026-27.

AGM details

• Held on 18 September 2026 via VC/OAVM from 11:00 AM to 12:49 PM IST.

Resolutions

• Ordinary: receive, consider and adopt Audited Financial Statements for FY ending 31 March 2026.
• Ordinary: appoint Krishna Veni Kandula, who retires by rotation, for re-appointment.
• Ordinary: appoint Kandula Ramakrishna, who retires by rotation, for re-appointment.
• Ordinary: ratify remuneration payable to cost auditors for FY 2026-27.
• Ordinary: re-appoint M S K A & Associates LLP as Statutory Auditors.

Meeting Details

• Date and time: September 19, 2026, 9:00 AM–4:00 PM IST.
• Type and mode: Investors Conference; in-person.
• Event/organiser: Investors Conference Meet by Money Purse Finserv LLP.
• Key company participants: Company Secretary & Compliance Officer will participate.
• Purpose: participation in investor interactions during the conference.
• Recording availability: no details provided.

EGM outcomes and preferential issues

• EGM held Aug 10, 2026 via VC/OAVM; Special Resolutions 1 and 2 were considered.
• Resolution 1: issue 24,39,750 equity shares to non-promoter investors for cash.
• Resolution 2: issue 22,18,431 equity shares under Share Swap for non-cash consideration.

Amendment to Share Swap Agreement

• Amendment dated Aug 24, 2026 revises non-cash consideration from Rs 65,00,00,283 to Rs 64,99,92,079.
• Number of equity shares to be issued revised from 22,18,431 to 22,18,403.
• Swap ratio revised to 84.49:1; Rs 44 cash differential payable by Truplusco.
• Other terms unchanged; amendments arithmetical, not altering commercial substance.

Clarifications and shareholding impact

• Clarifications address pre- and post-issue shareholding basis; pre non-diluted, post fully diluted.
• Annexure I shows revised pre- and post-issue holdings; ESOPs of 6,00,000 outstanding.
• Post-issue holders: AGI Group 22,77,100; Monoflus 73,32,650; Truplusco 22,18,403 at 1.08%.

Overview

• Consolidated BRSR for FY2025-26 covering Standard Engineering Technology Ltd and wholly‑owned subsidiaries.
• Core activity: manufacturing glass‑lined equipment and allied process machinery for pharma/chemical sectors.
• Six locations in India (five plants, one office); serves 17 states domestically and two international markets.
• Exports (~4.84% of turnover); 100% turnover from manufacturing of SP machinery and turnkey solutions.
• Board‑approved ESG Strategy and Roadmap; disclosures within the Annual Report on a consolidated basis.
• Incorporated 2012; rebranded from Standard Glass Lining Technology; expanding into AI data center infrastructure.

Key ESG Risks & Opportunities

• Opportunity: Product quality and customer satisfaction drive long‑term growth in regulated industries.
• Opportunity: Employee well‑being and talent development boost productivity and retention.
• Opportunity: Sustainable manufacturing and clean technologies improve efficiency and competitiveness.
• Opportunity: Community development and stakeholder engagement strengthen social license.
• Risk: Occupational health and safety exposure; mitigated by OHS system, PPE, training, and drills.
• Risk: Governance and ethics lapses; mitigated by Code of Conduct, whistleblower policy, and board oversight.
• Risk: Water stewardship challenges; mitigated by conservation, reuse, monitoring, governance.
• Risk: Energy use, emissions and waste management; mitigated by efficiency and segregation.
• Risk: Supply chain disruptions; mitigated by diversified supplier base and Supplier Code of Conduct.

Governance & Policy Highlights

• ESG/CSR Committee established; oversees sustainability matters on consolidated basis.
• Board‑approved ESG Strategy and Roadmap; policies translated into procedures.
• Anti‑corruption policy in place; zero tolerance toward bribery and corruption.
• Whistleblower mechanism and internal committees; board oversight of disclosures.
• Certifications: ISO 9001, 14001, 27001, 45001; alignment with NGRBC/GRI frameworks.
• Assurance: Not Applicable; no external assurance for this filing.
• Penalties: None reported in the period.

Social Responsibility & Workforce

• Workforce: 621 permanent employees and 284 workers; gender distribution skewed male.
• Board female representation: 3 of 14 (21.4%); KMP female representation: 3 of 9 (33.3%).
• Training: 4 BoD, 4 KMP, 5 employees, 5 workers programs; 100% coverage.
• Grievance mechanisms: formal channels for all staff; confidential reporting via dedicated email.
• Disability access: premises largely accessible; equal opportunity policy with disability focus.
• Parental leave: return‑to‑work/retention rates after leave reported as 0%.
• CSR spend: turnover Rs 70.22 crore; net worth Rs 81.78 crore; focus on education, infrastructure, environment, sport.
• MSME procurement: 8.90% from MSMEs; 92.42% from India; urban share 100%.

Environmental Performance

• Energy: total 52,045.75 GJ; renewable 2,958.07 GJ; non‑renewable 49,087.68 GJ.
• GHG: Scope 1 212.96 tCO2e; Scope 2 9,171.65 tCO2e; intensity 3.07 tCO2e per unit.
• Water: withdrawal 4,633.62 kl; consumption 7,110 kl; third‑party water 7,110 kl; discharge 60 kl to third parties.
• Waste: total 12 t; hazardous 12 t; non‑hazardous 0; landfill 12 t.
• ZLD implemented at SETL plant; treated STP water reused for gardening and hydro testing.
• Certifications: ISO 9001, 14001, 27001, 45001; LED lighting, sensors, and rooftop solar initiatives.

Stakeholder Engagement & Complaints

• Stakeholders: Investors, Employees, Contractors, Partners, Customers, Communities; channels via website, email, meetings.
• Engagement frequency: investors quarterly/annually; employees monthly/quarterly; communities quarterly.
• Complaints: zero filings across stakeholder groups in FY2025-26; no unresolved issues.
• Communities engage via CSR programs; feedback integrated into planning and ESG strategy.
• Whistleblower and ICCs ensure protection; governance committees review stakeholder concerns.

Other Notable Metrics

• Related party transactions: purchases from related parties 15.2% of purchases; top‑10 trading houses 48.95% of trading purchases.
• RPTs in investments: 100%; Loans & advances to related parties: 100%; Sales to related parties: 6.95%.
• CSR: significant programs across education, social welfare, infrastructure, environment/sport, disability, heritage.
• Supply chain: nil reported for environmental/human rights due‑diligence of partners; no significant adverse impacts noted.
• Public policy: FTCCI is among trade associations; no major anti‑competitive actions reported.

Financial performance

• Consolidated revenue from operations: ₹77,409.99 lakh; total income ₹79,309.16 lakh.
• Consolidated PAT: ₹8,303.97 lakh; PAT margin 10.47%.
• Standalone EBITDA: ₹13,795.02 lakh; EBITDA margin 17.39%.
• Standalone PAT ₹4,108.72 lakh; EPS ₹2.06 (basic/diluted).
• Total YoY growth: consolidated total income +26.7%; standalone total income growth not stated here.
• Net debt position: consolidated net debt ₹3,225.29 lakh negative; standalone net cash ₹6,798.33 lakh.
• IPO proceeds: total ₹23,224.50 lakh; utilized ₹18,561.42 lakh; unutilised ₹4,663.08 lakh.
• Dividend declared: none for FY2025-26.

Strategic growth & acquisitions

• Name change: from Standard Glass Lining Technology Limited to Standard Engineering Technology Limited.
• Acquired 51% of Standard Scigenics Private Limited on 16-Sep-2025.
• Acquired 51% of Standard C2C Engineering Private Limited on 03-Nov-2025.
• Strategic entry into AI data center infrastructure via planned investment in GScale Energy (up to 51%).
• Aim: build two complementary growth engines—core engineering and AI infrastructure.
• Acquisitions expanded bioprocess, high-purity, and multidisciplinary engineering capabilities.

Capital structure & liquidity

• Equity share capital: ₹19,949.16 lakh; Authorized capital: ₹2160 crore.
• Net debt position: consolidated net debt negative ₹3,225.29 lakh; gearing -0.04.
• IPO proceeds: ₹23,224.50 lakh; ₹18,561.42 lakh utilized; ₹4,663.08 lakh unutilised.
• Cash and bank balances: substantial liquidity; undrawn facilities not detailed here.

Dividend & AGM actions

• Dividend for FY2025-26: not declared.
• 14th AGM scheduled for Friday 18 September 2026 via VC/OAVM.
• Remote e-voting window: 15 Sept 2026 to 17 Sept 2026; record date 11 Sept 2026.
• ESOP 2024: 6,00,000 options granted on 14 May 2026.

Governance & risk management

• New Independent Director: Uma Maheswara Rao Kancherla appointed 14 May 2026.
• Yasuyuki Ikeda designated from Non-Executive to Executive Director from 14 May 2026.
• Four Board meetings held in FY2025-26; multiple committees in operation.
• Internal controls: Company maintains adequate internal financial controls; secretarial audit with no qualifications.

ESG & CSR performance

• CSR expenditure: ₹70.60 lakh; 7 CSR initiatives; 2 CSR committee meetings.
• BRSR forms part of the Annual Report; ESG strategy and targets disclosed.
• Energy and water: implemented ZLD at SETL plant; LED lighting, solar PV, and sensor-based energy controls.
• GHG emissions: Scope 1 212.96 tCO2e; Scope 2 9,171.65 tCO2e; total ~9,384.61 tCO2e; intensity 3.07 MT CO2e per unit produced.

Operations & business footprint

• Manufacturing footprint spans Telangana; 7+ plants and 9 locations listed; 180+ engineered product lines.
• Domestic footprint: 17 states; exports: 2 countries; primary markets: pharma, chemicals, biotech, food & beverage.
• Strategic partnerships: AGI Glassplant, Atlas Copco, IPP, API Pharma, Biocon Solutions.
• AI data center infra strategy complements core glass-lined equipment business.

Material developments & forward outlook

• Growth opportunities seen in pharmaceuticals, biotechnology, specialty chemicals, and digital infrastructure.
• Regulatory tailwinds and government schemes (PLI, Make in India) support capacity expansion.
• Management expects continued disciplined execution and value creation across traditional and new growth engines.