Financial Performance Highlights

Q2 FY27 (Consolidated)

  • Revenue: ₹320 crore, up 24% year-on-year (YoY) from ₹257 crore in Q2 FY26 and up 14% sequentially (QoQ). This is the company's highest-ever quarterly revenue.
  • EBITDA: ₹102 crore, up 25% YoY from ₹82 crore and up 22% QoQ. This is the first time the company has crossed the ₹100 crore EBITDA milestone in a single quarter.
  • EBITDA Margin: 31.9%, compared to 31.8% in Q2 FY26.
  • Profit After Tax (PAT): ₹61 crore, up 20% YoY from ₹51 crore.
  • PAT Margin: 19.2%, compared to 20.0% in Q2 FY26.

H1 FY27 (Consolidated)

  • Revenue: ₹600 crore, up 19% YoY from ₹503 crore in H1 FY26.
  • EBITDA: ₹185 crore, up 22% YoY from ₹152 crore.
  • EBITDA Margin: 30.8%, an improvement of 60 basis points YoY.
  • PAT: ₹109 crore, up 18% YoY from ₹92 crore.
  • PAT Margin: 18.2%, compared to 18.4% in H1 FY26.
  • Cash PAT: ₹138 crore, up 19% from ₹116 crore in H1 FY26.

Key Financial Ratios (as of September 30, 2026)

  • Return on Capital Employed (ROCE): 41.1%
  • Return on Equity (ROE): 29.7%
  • Debt to Equity: 0.2x
  • Fixed Asset Turnover: 2x

Segment-Wise Performance

Q2 FY27 Segment Revenue

  • Healthcare: ₹175 crore (55% of total revenue), up 78% YoY from ₹99 crore.
  • Consumer: ₹116 crore, down 14% YoY and flat sequentially.
  • Industrial: ₹29 crore, up 23% YoY from ₹23 crore.

H1 FY27 Segment Revenue

  • Healthcare: ₹318 crore, up 81% YoY from ₹176 crore.
  • Consumer: ₹231 crore, down 19% YoY from ₹286 crore.
  • Industrial: ₹51 crore, up 24% YoY from ₹41 crore.

Operational Highlights

Healthcare Business

  • The segment is the primary growth engine, contributing 55% of revenue vs. 38% a year ago.
  • The company delivered 10.4 million devices in Q2 and remains on track to exceed its full-year guidance of 36 million devices.
  • Growth was led by pen injector platforms, particularly GLP-1 programs, alongside steady volumes in insulin and other therapies.
  • The company signed 2 new contracts for its proprietary platforms during the quarter.

Product Innovation & Launches

  • Toby Reusable Auto-injector: Launched as a multi-use, 2-step auto-injector for next-generation GLP-1 therapies. It is designed to be 70% more sustainable than disposable alternatives by reducing material consumption, energy use, shipping, and cold chain requirements. The device uses a single-use syringe pod attached to a reusable main mechanism good for over 200 injections.
  • The company is extending its platforms into new therapeutic areas, specifically emergency use and oncology, to diversify the Healthcare business.
  • Eye Applicator: Has completed qualifications, with supplies expected to commence by the end of Q3 FY27 or early Q4 FY27.

Consumer & Industrial Business

  • Consumer: Revenue stabilized sequentially but remains below prior-year levels due to subdued demand for home furnishings in Europe and the U.S. The company received business confirmations for a new product from an existing customer and for higher volumes of an existing product from another.
  • Industrial: Growth was driven by customers in Automotive, Appliances, and Consumer Electronics. The company received business confirmation for 7 new power tool products and new knobs from an Appliance customer.

New Business Verticals: Consumer Electronics & Semiconductor

  • Consumer Electronics: Commercial supplies have commenced. The company is progressively scaling production of 5 components awarded by a new customer.
  • Semiconductor Packaging: Trial production is expected to start in Q3 FY27, with commercial shipments anticipated in Q4 FY27.
  • The company is pursuing a significant scale-up opportunity in both segments over the next 36 months, requiring capabilities similar to its medical device business (tight tolerances, high cosmetic standards).
  • The approach will be measured, with capacity expansion aligned to customer commitments.

Capacity & Utilization

  • Machine utilization across plants rose to 52.5% in Q2 from 47.8% a year ago, reflecting the growing contribution of the high-value Healthcare business.
  • A new production line with a capacity of 25 million pens is starting qualification next week. If all goes well, commercial sales from this capacity are expected to begin in December 2026.
  • The Abu Dhabi facility expansion is on track to be ready by the end of FY28.

Export Mix

  • Exports accounted for 62.9% of H1 FY27 revenue, down from 71.7% in H1 FY26. This shift is attributed to growth in the Healthcare business supplying Indian pharma customers who serve global markets.

Credit Rating Update

  • In October 2026, CARE Ratings reaffirmed the company's long-term bank facilities at CARE A+ with a Stable outlook.
  • CARE upgraded the company's short-term facilities to CARE A1+ from CARE A1.
  • The upgrade reflects healthy operating margins, improving leverage and debt coverage, and new business secured from existing and marquee customers.

Management Commentary & Outlook

Near-Term Priorities for H2 FY27

1. Ramping up newly commissioned capacity.

2. Exceeding the full-year device guidance of 36 million units.

3. Advancing platforms in emergency use and oncology.

4. Progressing the Consumer Electronics and Semiconductor Packaging scale-up opportunity.

5. Maintaining margin discipline.

Guidance

  • The company is confident it will exceed its full-year device guidance of 36 million units. A revised number may be provided in the next quarterly call.
  • For FY28, the company is targeting device volumes in the range of approximately 50 million, give or take 15%, but this is not formal guidance.

Q&A Session Key Points

Product Recalls (Clarification)

  • Management clarified that recent product recalls by potential customers related to API impurities and incorrect dose labeling on pens have no bearing on Shaily Engineering.
  • The issues were attributed to final assembly, packaging, or distribution errors and not to the device itself. The company stated this has not and is not expected to impact its volumes.

Toby Reusable Auto-injector

  • The product is targeted at innovator pharma companies and is not expected to cannibalize existing product portfolios.
  • The company is seeking a partner to finalize the product's features and functionality.

Innovator Pharma Partnerships

  • The company is actively participating in RFQs and is confident of onboarding 1-2 innovator pharma partners by the end of calendar year 2027. Revenue from such partnerships would typically follow a 3- to 4-year journey post-approval.

Margins & Pricing

  • The company faces pricing pressure, but long-term contracts have built-in price erosion clauses.
  • Management is confident in maintaining margins due to significant operating leverage yet to be realized (current utilization at 52.5%) and indexation mechanisms for material costs.
  • The average price per device increased due to a favorable product mix and the replacement of a lower-realization insulin contract manufacturing business with higher-realization GLP-1 business.

Subsidiary Performance (U.K.)

  • The subsidiary incurred losses for the last two quarters. Some revenue was not recognized in Q2 due to pending customer confirmations.
  • Management expects the subsidiary to be profitable for the full year FY27.

Semiconductor Business Details

  • The company is targeting JEDEC trays, carrier tapes, and wafer boxes.
  • It has a partnership with a large Korean player for technology and market access and will engage in contract manufacturing and exports.
  • Margins from this business are expected to be better than the average margins of the Consumer or Industrial segments.