SHAILY - Shaily Engineer.

📊 NSE: SHAILY 🏢 Plastics Products 📅 Last Updated: 12/14/2025 13:06

💰 Financial Performance

Revenue Growth by Segment

In H1 FY26, the Pharma segment grew 171% YoY to INR 176 Cr, the Industrial segment grew 17% YoY to INR 41 Cr, and the Consumer segment grew 6% YoY to INR 286 Cr. Overall consolidated revenue for H1 FY26 grew 36% YoY to INR 503.3 Cr.

Geographic Revenue Split

The UK-based subsidiary, Shaily Innovations Limited, reported a turnover of INR 48.68 Cr (GBP based) for FY25, representing approximately 6% of consolidated revenue. The company also expanded into Dubai with Shaily Innovations FZCO in January 2025.

Profitability Margins

Consolidated PAT margins improved significantly from 10.6% in H1 FY25 to 18.4% in H1 FY26. Gross profit margins on a standalone basis improved from 40.6% to 53.0% (+1,230 bps) in the same period due to a shift toward higher-margin IP-led pen platforms.

EBITDA Margin

Consolidated EBITDA margin stood at 30.2% in H1 FY26, an increase of 930 bps over 20.9% in H1 FY25. EBITDA grew 96% YoY to INR 152 Cr.

Capital Expenditure

Net cash used in investing activities (primarily capex) was INR 87.5 Cr in H1 FY26 compared to INR 19.2 Cr in H1 FY25. The company is committing to new capacities to support healthcare segment growth.

Credit Rating & Borrowing

CARE Ratings reaffirmed CARE A+; Stable for long-term bank facilities (INR 239.62 Cr) and CARE A1 for short-term facilities (INR 35.00 Cr) in October 2025. Borrowing costs are reflected in a finance cost of INR 7.8 Cr for H1 FY26.

⚙️ Operational Drivers

Raw Materials

Plastic resins and polymers (common materials used across all platforms) represent the primary raw material cost, which accounted for approximately 47% of standalone revenue in H1 FY26 (INR 216.7 Cr).

Import Sources

Not disclosed in available documents, though the company notes vulnerability to exchange rate fluctuations, implying significant imports.

Capacity Expansion

The fixed asset turnover ratio stands at 2x as of September 30, 2025. The company has committed to new capacities specifically for the healthcare segment to meet increased demand for drug delivery devices.

Raw Material Costs

Raw material and purchase costs stood at INR 216.7 Cr for H1 FY26. Profitability is vulnerable to raw material price volatility, though commonality of materials across platforms allows for supply chain flexibility.

Manufacturing Efficiency

EBITDA margins of 30.2% and a fixed asset turnover of 2x reflect high efficiency in precision moulding operations.

📈 Strategic Growth

Expected Growth Rate

36%

Growth Strategy

Growth is driven by scaling the healthcare segment, which grew 171% in H1 FY26. Strategy includes commercializing IP-led pen platforms, executing new collaborative design-to-manufacture contracts with MNC pharma companies, and expanding design services through the Dubai subsidiary.

Products & Services

Drug delivery devices (insulin pens), precision plastic components for consumer electronics, and industrial plastic packaging.

Brand Portfolio

Shaily

New Products/Services

IP-led pen platforms and new drug delivery device contracts are expected to start commercial supplies in H2 FY26.

Market Expansion

Expansion into the Middle East via Shaily Innovations FZCO (Dubai) for drug delivery device design and development.

Strategic Alliances

Collaborative design-to-manufacture contracts with multinational pharmaceutical companies for precision moulding.

🌍 External Factors

Industry Trends

The industry is shifting toward precision-engineered plastics in healthcare. Shaily is positioned to benefit from this as healthcare revenue share doubled to 38% in Q2 FY26.

Competitive Landscape

Competes in the precision plastic injection moulding space, serving global leaders in pharma and consumer segments.

Competitive Moat

Moat is built on IP-led pen platforms, 40 years of promoter experience in injection moulding, and established relationships with global MNCs. These are sustainable due to high switching costs in regulated pharma markets.