Shaily Engineering Plastics Q2 FY27 results: net profit up 19.6% to ₹61.27 crore, revenue up 24.5%

How did Shaily Engineering Plastics perform in Q2 FY27?

Shaily Engineering Plastics reported consolidated revenue of ₹319.53 crore for Q2 FY27, up 24.5% from ₹256.65 crore in Q2 FY26 and 13.8% from ₹280.67 crore in Q1 FY27. EBITDA rose 22.5% year on year and 17.0% sequentially to ₹97.14 crore. The EBITDA margin was 30.4%, compared with 30.9% a year earlier and 29.6% in the previous quarter.

Consolidated net profit was ₹61.27 crore, up 19.6% from ₹51.25 crore in Q2 FY26 and 27.6% from ₹48.01 crore in Q1 FY27. Basic EPS was ₹13.32, compared with ₹11.15 and ₹10.45, respectively. On the standalone basis, revenue was ₹309.72 crore and PAT was ₹66.94 crore; standalone revenue declined 32.8%.

What changed in Shaily Engineering Plastics' costs and profit?

Total expenses increased 24.0% year on year to ₹239.69 crore, mainly reflecting higher cost of materials of ₹133.55 crore, employee cost of ₹34.82 crore, depreciation of ₹14.29 crore and other expenses of ₹59.87 crore. Finance costs declined to ₹3.01 crore from ₹3.91 crore, while other income rose to ₹4.72 crore from ₹2.28 crore. There was no exceptional item.

Against Q1 FY27, total expenses rose 11.5% to ₹239.69 crore. Other expenses increased by ₹16.85 crore to ₹59.87 crore, cost of materials by ₹6.99 crore to ₹133.55 crore and employee cost by ₹2.06 crore to ₹34.82 crore. Other income rose by ₹4.47 crore to ₹4.72 crore, while finance costs declined by ₹0.31 crore to ₹3.01 crore.

Management said the quarter was shaped by geopolitical uncertainty, input-cost volatility and divergent demand. It cited West Asia developments affecting freight and polymer prices, subdued European and US home-furnishings demand, pricing discipline, procurement efficiencies and a favourable product mix. Tax expense increased by ₹8.84 crore year on year to ₹23.29 crore and was ₹5.36 crore higher than in Q1 FY27.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹600.2 crore, up 19.2% from ₹503.35 crore in H1 FY26, while total income rose 19.2% to ₹605.17 crore from ₹507.72 crore. PBT increased by 24.6% to ₹150.5 crore from ₹120.78 crore.

H1 FY27 PAT was ₹109.28 crore, up 18.3% from ₹92.37 crore in H1 FY26, and basic EPS increased to ₹23.76 from ₹20.1. The investor presentation attributed the higher Healthcare segment revenue, which rose 81% to ₹318 crore, as the key driver of consolidated growth.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,301.15 crore, compared with ₹1,146.74 crore at 31 March 2026, and total equity was ₹834.71 crore against ₹716.67 crore. Borrowings were ₹177.19 crore versus ₹174.03 crore, while cash increased to ₹41.15 crore from ₹20.79 crore. Inventories were ₹163.41 crore and trade receivables ₹273.91 crore.

H1 FY27 operating cash flow was ₹110.46 crore, up from ₹98.43 crore in H1 FY26. Investing cash flow was an outflow of ₹89.42 crore, compared with an outflow of ₹89.59 crore, and financing cash flow was an outflow of ₹0.68 crore against an outflow of ₹6.69 crore. Capital expenditure was ₹88.07 crore, compared with ₹88.33 crore.

How has Shaily Engineering Plastics done over the last 8 quarters?

Revenue and profit increased in each of the last eight quarters on a year-on-year basis. In the latest quarter, revenue reached ₹319.53 crore and PAT was ₹61.27 crore, the highest levels in the reported series. EBITDA margin was 30.4%, below the 30.9% peak in Q2 FY26 but above the 29.6% recorded in the previous quarter.

Across the reported period, revenue bottomed at ₹197.58 crore in Q3 FY25 and PAT at ₹25.2 crore. The EBITDA margin reached its low of 23.2% in that quarter and its high of 30.9% in Q2 FY26. The latest readings show revenue and PAT moving higher, while margin remained near the previous peak.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 at its meeting on 29 October 2026. The results were reviewed by the audit committee, and B S R and Co issued limited-review reports on the standalone and consolidated statements.

Shaily also filed its Q2 and H1 FY27 investor presentation on 29 October 2026. The presentation said Healthcare drove growth and listed a 25-million-pen capacity addition, automation machines undergoing commissioning and validation, and an expected annual capacity addition of 75 million pens at the planned Abu Dhabi facility. The same-day filings did not announce a dividend, fund raise or appointment.

What did Shaily Engineering Plastics' management say?

Management maintained FY27 Healthcare device-delivery guidance at above 36 million units. Mr Amit Sanghvi said, “I think we will exceed the guidance. Now how much we exceed it by, I have no clue.” Healthcare reached 55% of Q2 revenue and grew 78% year on year, while Consumer revenue was expected to remain flat in FY27, with possible growth in FY28.

Management expected margins to be maintained despite baseline device-price erosion. Mr Amit Sanghvi said, “Now I'm very confident we will be able to maintain our margins.” The company expected the new 25-million-pen line to begin commercial selling in December 2026 after qualification work starts in October 2026. Eye-applicator supply was expected by the end of Q3 FY27 or early Q4 FY27.

Management identified geopolitical developments in West Asia, volatile freight and polymer prices, subdued European and US home-furnishings demand, healthcare capacity bottlenecks and GLP-1 price erosion as risks. It also said customer confirmations for subsidiary revenue remained pending, contributing to losses in recent quarters. Toby Reusable was described as about 80% developed and aimed at innovator pharma, but no partner or revenue timing was disclosed.

Management said one or two innovator wins were expected by end-CY2027, but revenue would take 3–4 years to follow. Mr Amit Sanghvi said, “Having said that, when you crack an innovator, the revenue isn't going to start flowing from '28. It's going to be a 3- to 4-year journey before you see revenue flow in.”

How did Shaily Engineering Plastics shares react?

The filing appeared after market hours. From the price when the filing appeared, SHAILY fell 1.4% after 5 minutes, rose 0.2% after 15 minutes and fell 0.9% after 30 minutes. On the reaction day, the stock closed 4.2% above its pre-results close; by the next day's close, it was down 1.5% from that pre-results close.

The Plastic Products - Consumer industry median moved 0.7% lower on the reaction day, while the Nifty Microcap 250 fell 2.5%. SHAILY therefore exceeded the industry median by 4.9 percentage points on the reaction day. By the next day's close, the industry median was down 0.9% and the market index was down 1.1%, while SHAILY's relative move was 0.5 percentage points lower.

Earlier results-day moves were mixed: SHAILY rose 6.2% on 8 August 2026 and 3.2% on 19 May 2026, fell 6.9% on 12 February 2026, rose 0.2% on 8 November 2025 and 4.7% on 11 August 2025, fell 3.7% on 13 May 2025, rose 0.1% on 8 February 2025 and fell 1.6% on 28 October 2024.