Shaily Engineering Fuels Future Growth with Healthcare Expansion

• Healthcare pen capacity target: 70-75 million pens by early FY27.
• Total Capex: INR 125 crores for 50 million pens capacity in FY26-FY27.
• Commercial supply for GLP-1 pens has commenced.
• Target 80-85% capacity utilization by FY28 for new pen lines.
• Healthcare segment is projected to significantly boost revenue and profitability.
• Mixed material and new consumer businesses offer significant scalability.

Shaily Engineering Plastics' Q1 FY26 saw revenue jump 38% year-on-year, propelled by a stellar 181% growth in its Healthcare segment to INR 77 crores. This strong performance underpins the company's ambitious forward-looking guidance. Shaily is now strategically expanding its healthcare manufacturing capabilities, focusing on high-growth medical devices like GLP-1 pens, and diversifying its product portfolio for sustained future growth and enhanced profitability.

Accelerating Healthcare Capacity and Innovation

Shaily Engineering is making significant strides in its Healthcare segment, a key driver of future growth. The company is actively expanding its pen manufacturing capacity, with an additional 25 million pens/year capacity expected on stream by end of Q2 FY26. A further 25 million pens capacity is planned by early FY27, bringing the total effective capacity to 70-75 million pens. This expansion involves a total capex of INR 125 crores in FY26. Commercial manufacturing of GLP-1 pens has already commenced, and the company projects this segment to significantly boost revenue and profitability. As stated,

We're on track with our guidance expecting health care business to contribute significantly to our revenue and profitability over the next couple of years...

Strategic Diversification and Market Focus

Beyond healthcare, Shaily maintains a diversified approach. The Consumer segment is gaining traction with new mixed material and accessory businesses, showing scalability. While the Industrial segment saw minor degrowth, it remains steady with new business additions. The company aims for 80-85% utilization of its new healthcare pen lines by FY28, with 50-60% of capacity already backed by customer commitments. This long-term view is supported by careful planning:

given a 24 to 36-month kind of time frame, capacity is obviously going to be fully utilized.

Shaily is also pursuing sales turnover incentives under the PLI scheme, further bolstering its strategic growth trajectory across its varied segments.

Shaily Engineering's Q1 FY26 results highlight its strategic pivot and substantial investments in the high-growth healthcare sector, particularly in GLP-1 pens. Combined with a robust outlook for its diversified consumer and industrial businesses, the company is well-positioned for sustained revenue growth and improved margins. The focus on capacity expansion and operational efficiency signals a strong pathway towards long-term organizational value.