EBITDA came in at Rs. 44.1 crore, up 27.3%, with margins holding at 17.5%.
Profit Before Tax rose 26.5% to Rs. 36 crore, while Profit After Tax grew 26.6% to Rs. 26.7 crore, translating to a PAT margin of 10.6%.
Notably, this growth was achieved even as the Company continued investing heavily in its new growth platforms — a sign of the underlying strength and cash-generating capacity of the core business.
Entry into AI Datacenter Infrastructure
The quarter’s biggest strategic headline was SETL’s announced entry into India’s fast-growing AI Datacenter Infrastructure market, through the proposed acquisition of up to 51% equity in GScale Energy Private Limited.
This move creates a second growth engine for the Company, backed by an approximately Rs. 500 crore self-funded capital programme to build an integrated datacenter engineering and manufacturing platform.
The combined entity will offer end-to-end infrastructure solutions — power distribution, backup power, liquid and air cooling, prefabricated modules, and turnkey delivery — positioning SETL to meet India’s rising localisation needs for AI and hyperscale datacenters.
Team onboarding, machinery procurement, design work, and construction of the new manufacturing facility are all on schedule, and early client engagement has been encouraging.
Deepened Partnership with GL Hakko, Japan
SETL also strengthened its near-decade-long technology relationship with GL Hakko Co., Ltd. of Japan, investing Rs. 71.5 crore for an initial 19.19% equity stake, with rights to scale up to 51.07% over three years at a pre-agreed valuation.
Founded in 1955, GL Hakko brings 70+ years of glass-lining expertise and has delivered over 20,000 units globally.
The partnership gives SETL access to proprietary technologies — including conductivity glass, glass-lined shell-and-tube heat exchangers, and semiconductor-grade process equipment — while expanding SETL’s combined addressable market to over US$3.5 billion.
Capital Raise to Support Growth
To fund this expansion, the Board approved a preferential allotment of approximately Rs. 136.5 crore — comprising Rs. 71.5 crore in cash from strategic investors AGI Group Holdings Inc. (Japan) and Monoflus Pte. Ltd. (Singapore), plus roughly Rs. 65 crore via a share swap with Truplusco India LLP as consideration for the GScale stake.
This is subject to shareholder and regulatory approval.
Two Engines of Growth
Management framed the Company’s strategy around “two engines running in parallel”:
- The core engineering business (pharma and chemical), expected to grow 40–50% this year to around Rs. 1,200 crore.
- GScale, the new AI Datacenter business, expected to contribute approximately Rs. 250 crore in its first year.
Management Commentary
MD Nageswara Rao Kandula described the quarter as evidence of consistent, repeatable performance rather than a one-off achievement, emphasizing that SETL is becoming “India’s high precision engineering powerhouse.”
He credited strong team execution on both the GScale build-out and the GL Hakko partnership, and reaffirmed the Company’s commitment to disciplined capital allocation, technology-led partnerships, and long-term value creation for customers, employees, shareholders, and partners alike.
Outlook
Going forward, SETL’s priorities are to:
- Keep leading in its core engineering business
- Scale GScale into a world-class AI datacenter manufacturing platform
- Grow the GL Hakko partnership into new international markets
—all part of a broader ambition to become India’s leading diversified, technology-led precision engineering company.
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