SJP Ultrasonics Targets 2,150 Units With No Machinery Orders

SJP Ultrasonics targets installed capacity of 2,150 units in financial year (FY) 2026-27, up from 730 units in FY 2025-26, but the Rs 13.2164 crore machinery programme supporting the increase had no purchase orders or definitive supplier agreements. The company says its supplier quotations may lapse and procurement costs, vendors and equipment mix may change.

How large is SJP Ultrasonics’ planned capacity expansion?

SJP Ultrasonics proposes to add 1,420 units of installed capacity, taking capacity from 730 units in FY 2025-26 to 2,150 units in FY 2026-27. The FY 2026-27 estimate is 2.95 times FY 2025-26 capacity, according to a June 30, 2026 certificate from practising chartered engineer Kalpesh Gandhi. The company estimates production of 2,050 units in FY 2026-27, or 95% of the proposed capacity.

SJP Ultrasonics’ FY 2026-27 forecast assumes a higher utilisation rate than its reported recent record. Actual production was 579 units from 650 units of capacity in FY 2023-24, 634 units from 700 units in FY 2024-25, and 649 units from 730 units in FY 2025-26. Those reported utilisation levels were 89%, 90% and 89%, respectively, while the post-expansion forecast is 95% in FY 2026-27 and 93% in FY 2027-28.

The capacity measure in units is affected by SJP Ultrasonics’ product mix. The company said installed capacity declined from FY 2022-23 to FY 2023-24 because it moved from smaller standard plastic-welding units, made in higher volumes, towards specialised machines made in lower quantities. Capacity expressed as units therefore does not measure the value, complexity or revenue associated with each machine.

What does SJP Ultrasonics’ Rs 13.2164 crore machinery plan cover?

SJP Ultrasonics plans to allocate Rs 13.2164 crore to machinery purchases, equal to about 62% of Rs 21.1864 crore of stated net proceeds. The proposed equipment includes eight vertical milling machines, three computer numerical control (CNC) turning centres, three compressors, two band saw machines, a six-axis robot, two diesel generator sets, vibration welders, ultrasonic welding machines, a laser plastic welder, design software and inspection equipment.

The largest listed purchase is six TM-0 milling machines at Rs 2.0036 crore, followed by one vibration welder at Rs 1.6622 crore, two VF-4SS vertical milling machines at Rs 1.3463 crore and two vibration welders at Rs 1.3378 crore. The disclosed totals include goods and services tax (GST) and import duty where applicable. SJP Ultrasonics says freight, installation, commissioning, transport, packaging, insurance and other levies would be funded from internal accruals.

The equipment is intended for SJP Ultrasonics’ registered office and factory at Waliv, Palghar, Maharashtra. The company said milling and CNC equipment would support in-house production of plastic-joining tools and fixtures, while vibration and ultrasonic equipment would be used for plastic and metal joining applications. These intended benefits depend on equipment being acquired, installed and put into operation under the company’s estimates.

Why does SJP Ultrasonics have no machinery orders yet?

SJP Ultrasonics had obtained quotations but had not placed orders or entered definitive agreements for machinery purchase and installation. Its audit committee and board approved the capital-expenditure object on September 7, 2026, but that approval did not establish binding supply arrangements. The company says its estimates are based on quotations and actual procurement costs and suppliers may differ.

Quotation validity periods vary from 90 days to 180 days, three months, six months and, in one case, until March 31, 2027. For example, quotations dated July 20, 2026 for the VF-4SS and TM-0 milling machines were valid for 120 days, while certain Zhejiang Zhenbo Precision Machinery quotations dated July 20 and July 22, 2026 were valid for six months. SJP Ultrasonics says quotations may lapse, which could raise machinery costs when orders are eventually placed.

Management may change suppliers, models, quantities or equipment at the ordering stage and may use any resulting surplus for other machinery, equipment or utilities. That discretion means the Rs 13.2164 crore programme is a budgetary estimate rather than a fixed procurement commitment. Its implementation requires suppliers to be selected, quoted terms to remain available or be replaced, and funding to cover actual costs.

Does SJP Ultrasonics have factory space for the proposed equipment?

SJP Ultrasonics reported 2,339.73 square feet of free space within a 4,383.38-square-foot property, against 2,177.14 square feet stated as necessary for the proposed setup. Existing operations used 2,043.65 square feet, leaving 162.59 square feet after accommodating the estimated new requirement. The narrow residual space reflects the company’s stated layout assumptions rather than a separate facility expansion plan.

The space calculation excludes floor space for the double-girder overhead travelling crane because it will be installed overhead. Workstations are to be placed in the existing design room, Siemens NX and SolidWorks software will be installed on those workstations, and table-top ultrasonic welding machines will use existing work tables. The 300-watt diode laser plastic welder is described as a source component to be kept in the store room.

The projected 2,150-unit capacity therefore relies on the proposed machinery fitting into the Waliv facility under these assumptions. The company’s capacity certificate dated June 30, 2026 estimates 2,050 units of production in FY 2026-27, but the stated area plan requires the overhead, workstation, storage and table-top arrangements to operate as planned.

How is SJP Ultrasonics funding the wider expansion?

SJP Ultrasonics proposes to deploy Rs 21.1864 crore of net proceeds in FY 2026-27, comprising Rs 13.2164 crore for machinery, Rs 4.92 crore for working capital and Rs 3.05 crore for general corporate purposes. The company says this deployment is based on management estimates, existing circumstances and market conditions, and has not been appraised by a bank, financial institution or independent agency.

Net working capital increased from Rs 6.9098 crore in FY 2023-24 to Rs 14.7151 crore in FY 2024-25 and Rs 18.2095 crore in FY 2025-26. SJP Ultrasonics projects Rs 36.1015 crore of net working capital in FY 2026-27, with Rs 4.92 crore from issue proceeds and Rs 31.1815 crore from internal accruals. The projected rise means the capacity plan also depends on internal accruals being available at the level estimated.

SJP Ultrasonics projects inventory holding of 454 days in FY 2026-27, compared with 484 days in FY 2025-26, and trade receivable days of 131, compared with 147. Its projections also show short-term borrowings of Rs 0.5723 crore in FY 2026-27, compared with Rs 5.6764 crore in FY 2025-26. These working-capital assumptions form part of the funding conditions for the stated production expansion.

Conclusion

SJP Ultrasonics’ proposed capacity rise from 730 units in FY 2025-26 to 2,150 units in FY 2026-27 rests on a Rs 13.2164 crore machinery allocation and a projected 95% utilisation rate. The plan combines a large increase in unit capacity with projected net working capital of Rs 36.1015 crore, including Rs 31.1815 crore expected from internal accruals.

The next disclosed milestones are conversion of quotations into purchase orders, finalisation of suppliers and installation of machinery. SJP Ultrasonics has stated that quotation validity can expire, machinery costs and vendors may change, and management may revise models or quantities, so the actual procurement and funding outcome will determine whether capacity reaches the estimate.