Standard Glass Lining Technology Ltd

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.

AGM details

• AGM date, time and mode: 18 Sep 2026 at 11:00 IST via VC/OAVM.
• Record date for voting: 11 Sep 2026.
• Register of Members and Share Transfer Books closed 12–18 Sep 2026.
• Deemed venue: Corporate Office, Hyderabad; NSDL e-voting facility available.

Key resolutions

• Ordinary: Adopt standalone and consolidated financial statements for year ended 31 Mar 2026.
• Ordinary: Re-appoint Mrs. Kandula Krishna Veni (DIN 02260233) retiring by rotation.
• Ordinary: Re-appoint Mr. Kandula Ramakrishna (DIN 05281520) retiring by rotation.
• Ordinary: Ratify remuneration of cost auditors for 2026-27 at ₹75,000 plus GST.
• Ordinary: Re-appoint M/S MSKA & Associates LLP as Statutory Auditors for five years at ₹27,00,000 per year plus expenses and GST.

Financial Performance

• Total income INR250 crores; 41% YoY growth.
• EBITDA INR44 crores; 27% YoY growth; margin 17.5%.
• PBT INR36 crores; 26% YoY growth.
• PAT INR26 crores; 26% YoY growth.
• Core engineering growth 40-50% this year to around INR1200 crores revenue.
• GScale revenue guidance INR250 crores this year; EBITDA margin 23-25%.

Growth Engines and Outlook

• SETL operates two engines: core engineering and GScale AI data centers.
• Two engines to drive double-speed growth; record quarterly performance.
• Exports contributed 2-3% of revenue in the quarter; 5-6% expected in Q2.
• Unexecuted core order book INR1400 crores.

GScale and Data Center Opportunity

• GScale is turnkey design-and-build for data centers; products include power, cooling, modular systems.
• First phase: 4,00,000 sq ft factory; 2,00,000 sq ft active by November; capacity to generate INR250 crores.
• 60-70% equipment in-house; rest sourced; turnkey solutions.

GL Hakko Alliance and Tech

• GL Hakko stake 19.9% with option to 51% in 2-3 years; INR71 crores invested.
• 70 years of tech access; products include conductivity glass and shell-and-tube glass lining; 80% manufactured in Japan.
• Global markets: export to Europe/US; top pharma clients.

Capex and Capacity Expansion

• Capex around INR500 crores for GScale; target ROCE about 20%.
• Factory capacity 4,00,000 sq ft; 2,00,000 active by November; 2,00,000 more by December.
• Turnkey design and build reduces data-center timelines by 15-18 months.

Q&A Highlights

• Addressable TAM around USD 7 million per MW; India to reach 10.2 GW in five years.
• Data-center projects typically 24-36 months; GScale aims to shorten by 15-18 months.
• GScale will deliver turnkey with 60-70% in-house manufacturing; rest sourced.
• FY27 guidance updated to INR1,450 crores (SETL 1,200; GScale 250).
• Unexecuted core order book stands at INR1,400 crores; CDMO about 50% of mix.
• ROCE target around 20% for GScale capex.

Purpose of EGM

• EGM held on 10 August 2026 to consider seven resolutions.
• Resolutions include preferential issue, share swap, and governance changes.
• Corrigendum clarifies objects and proposed allottees.

Resolutions and outcomes

• Resolution 1: Special; 2,439,750 equity shares issued; non-promoter investors; approved.
• Objects include acquisition of a controlling stake in GScale Energy Pvt Ltd.
• Promoter group did not participate; high support from non-promoters.
• Resolution 2: Special; equity shares via share swap; approved.
• Resolution 3: Ordinary; Yasuyuki Ikeda to Executive Director; approved.
• Resolution 4: Special; Uma Maheswara Rao Kancherla appointed Independent Director; approved.
• Resolution 5: Special; increase charge creation limit under 180(1)(A); approved.
• Resolution 6: Special; borrowings limit under 180(1)(C) increased; approved.
• Resolution 7: Special; limits under Section 186 increased; approved.

Management changes

• Ikeda promoted to Executive Director.
• Kancherla appointed Independent Director.

Use of funds / objects

• Proceeds earmarked for acquiring controlling stake in GScale Energy Pvt Ltd.

Resolutions

• Resolution 1: Issuance of 2,439,750 equity shares on preferential basis to non-promoter investors.
• Resolution 2: Issuance of equity shares on preferential basis via share swap arrangement.
• Resolution 3: Change in Yasuyuki Ikeda's designation from non-executive to executive director.
• Resolution 4: Appointment of Uma Maheswara Rao Kancherla as Independent Director.
• Resolution 5: Higher limits for creation of charge on assets under section 180(1)(a).
• Resolution 6: Higher limits for borrowings under section 180(1)(c).
• Resolution 7: Higher limits under section 186 of the Companies Act, 2013.

Voting status

• Voting results for all resolutions are to be declared later.

Governance moves

• Ikeda shifts from non-executive to executive director.
• Uma Maheswara Rao Kancherla appointed independent director.

Capital & governance impact

• Resolutions 5–7 expand debt and asset-charging limits.
• Possible effect on capital structure due to higher limits.

EGM Item 4 update

• Change in resolution: Item No.4 moves from Ordinary to Special resolution for appointment.
• Appointee Uma Maheswara Rao Kancherla (DIN: 11705945) as Independent Director.
• SEBI LODR compliance; resolution type now Special; other terms unchanged.
• Remote e-voting opened today and remains open for three days.
• EGM date remains Aug 10, 2026; mode via VC/OAVM.
• Corrigendum forms part of the original notice dated July 11, 2026.
• Voters may reconsider earlier votes; contact Scrutinizer Y. Ravi Prasada Reddy (RPR Associates).
• Corrigendum dated Aug 7, 2026; published on company/stock exchange portals.