Date: June 29, 2026

Board Meeting Outcomes

  • The company disclosed details of its proposed acquisition of up to 51% equity stake in GScale Energy Private Limited (GScale)
  • Decision made pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • Total investment commitment of ₹487 Crores under a phased investment programme

Financial Results (Investment Details)

  • Phase I involves acquisition of 51% equity stake for ₹190 Crores
  • Includes ₹65 Crore share-swap component
  • Remaining consideration to be infused as primary capital
  • Balance commitment will be deployed progressively as growth capital aligned with business milestones
  • Funding entirely from internal resources - no new debt
  • Company has approximately ₹220 Crore cash reserves
  • CRISIL A/Positive credit rating

Operational / Strategic Disclosures

Strategic Rationale

  • Entry into AI Datacenter Infrastructure sector through GScale Energy
  • Addressing bottleneck in India's AI build-out where most power and cooling equipment is imported
  • Combination of SETL's manufacturing expertise and GScale's datacenter domain knowledge
  • Focus on made-in-India power and cooling equipment for AI datacenters

GScale Energy Capabilities

  • Led by Mr. Brahma Reddy Kasu, 25-year datacenter veteran and former President of CtrlS
  • 486 MW already delivered and 1 GW+ under execution
  • 13 product lines across power infrastructure, cooling infrastructure, and integration & delivery
  • Products include: Power Distribution Units, Transformers, Switchgear, Busway Systems, Uninterruptible Power Supply, Battery Energy Storage, Diesel Generator Sets, Secondary Fluid Networks, Chillers, Cooling Towers, Computer Room Air Handlers, Liquid Cooling CDUs, and White/Grey-space fit-out

Manufacturing Readiness

  • 3 lakh sq ft factory ready (expanding to 4 lakh sq ft)
  • Manufacturing operations begin November 2026
  • Plant & machinery orders already placed
  • 80% product design completed with some prototypes ready
  • Key personnel and engineering teams already onboarded
  • Letters of Award with leading datacenter clients in final-stage closure

Financial Targets

  • Targeted ₹250 Crore revenue from GScale Energy in FY27 (from ~4 months of operations)
  • Targeted 40-50% growth in core engineering business in FY27
  • High-margin business model through complete in-house project delivery

Global Partnerships

  • Existing Japanese partnership with AGI (Asahi Glassplant) & GL HAKKO
  • AGI invested ~₹200 Crore and is SETL's second-largest shareholder
  • 20-year exclusive licence for glass-lined equipment manufacturing

Other Disclosures

  • The disclosure is an addendum to the Investors Presentation dated June 25, 2026
  • Document contains forward-looking statements subject to risks and uncertainties
  • No offering of securities is being made through this presentation