Shaily Engineering Plastics: Healthcare Drives Robust Q2 FY26 Growth

Shaily Engineering Plastics Limited, a prominent player in India's plastics components sector, has delivered a stellar performance in the second quarter of Fiscal Year 2026. The company reported a significant 34% year-on-year increase in consolidated revenue, reaching INR257 crores. This impressive top-line growth was accompanied by substantial improvements in profitability, with EBITDA expanding by over 1,000 basis points to 31.8%. Net profit (PAT) surged by an astounding 134% year-on-year, touching INR51 crores. These figures underscore Shaily's strategic focus and operational efficiency, particularly within its high-growth Healthcare segment.

The Healthcare segment emerged as the primary growth engine, showcasing a remarkable 163% year-on-year revenue increase to INR98.6 crores in Q2 FY26. This segment now accounts for 38% of the company's total revenue, a substantial increase from previous periods. The company's strategic initiatives, including the launch of the 'Shaily Axiom Max' fixed-dose pen for GLP-1 therapies and securing four new projects in the healthcare space, have been instrumental in this performance. In contrast, the Consumer segment experienced a slight dip of 3% in Q2 FY26, recording INR134.9 crores, though it still contributed the largest share of revenue. The Industrial segment demonstrated robust growth of 45%, reaching INR23.2 crores, bolstered by a new project with an automotive customer.

Shaily's strategic vision extends beyond immediate gains, with significant investments aimed at future growth. The company is aggressively expanding its pen manufacturing capacity from 40 million to 80 million units by the end of FY26, committing approximately INR125 crores to this expansion. This move is critical to meet the escalating demand for GLP-1 devices globally. Furthermore, Shaily is making inroads into new, high-potential verticals such as Consumer Electronics, with commercial supplies anticipated to commence in the second half of the current financial year. The company is also exploring opportunities in the semiconductor business, signaling a long-term diversification strategy into high-precision manufacturing.

Management emphasized its disciplined approach to capital allocation, reflected in a healthy Return on Capital Employed (ROCE) of 42.3% and Return on Equity (ROE) of 32.7% as of September 30, 2025. The debt-to-equity ratio stands at a conservative 0.3x, indicating a strong balance sheet and prudent financial management. This disciplined capital use has been a cornerstone of the company's ability to achieve growth while maintaining financial stability. The company's strong credit ratings (CARE A+ and CARE A1) further validate its robust financial health and operational track record.

Despite the strong performance, management acknowledged certain challenges, including potential regulatory delays for GLP-1 launches in markets like Canada and the presence of Chinese competition. However, Shaily's strategy of partnering with a majority of generic players and rapidly scaling up operations aims to mitigate these risks. The company's proactive approach to innovation, as evidenced by the Axiom Max pen, and its exploration of new industries like semiconductors, positions it well for sustained growth. Shaily Engineering Plastics continues to demonstrate strategic clarity and disciplined execution, reinforcing investor confidence in its long-term trajectory within the dynamic plastics engineering landscape.