1. At a Glance
Let’s not waste time pretending this is a sleepy capital goods company. Standard Engineering Technology Ltd is a freshly listed, pharma-heavy engineering manufacturer sitting at a ₹2,383 Cr market cap, trading around ₹120, down ~30% in three months like a newly IPO-ed teenager discovering volatility for the first time.
Sales are ₹714 Cr (TTM), PAT ₹75.4 Cr, ROCE 16.5%, ROE 11.6%, and debt a very manageable ₹137 Cr (D/E 0.18). Sounds respectable, right? Then you peek at working capital days: 272 and suddenly the vibe changes.
Q3 FY26 delivered ₹192 Cr revenue (+36.7% YoY) and ₹19.2 Cr PAT (+28%), which is not bad at all. But the stock trades at 31.6× earnings, in an industry median closer to the high-20s, while cash flows are doing yoga stretches instead of running sprints.
So what do we have here?
A top-5 glass-lined equipment maker, pharma-dominated revenue, strong capacity utilization, IPO cash in the bank… and a balance sheet that loves inventory a little too much. Curious? You should be.
2. Introduction
Standard Engineering Technology Ltd (a.k.a. Standard Glass Lining Technology, because engineers love long names) was incorporated in September 2012, quietly built machines for pharma and chemical plants, and then suddenly showed up on Dalal Street in January 2025 with a ₹410 Cr IPO like, “Hi guys, we’ve been here all along.”
This is not a concept stock. This is not a PowerPoint-only story. This company has 8 manufacturing units in Telangana, 400,000 sq. ft. of space, 300–350 equipment per month capacity, and 11,000+ units delivered historically. The machines they build are mission-critical: if they fail, pharma plants don’t just lose money—they lose regulatory sleep.
But here’s the fun part: despite real operations, real customers (Aurobindo, Laurus, Natco, Piramal), and real revenues, the market is still undecided. The stock is down ~27% in a year, even though revenues grew at 37% CAGR over three years.
Is this a classic “good business, bad cash flow
timing” story?
Or is it a “welcome to capital goods, enjoy your receivables” initiation ritual?
Let’s open the hood.
3. Business Model – WTF Do They Even Do?
Imagine a pharma company wants to make a complex molecule that reacts violently if you look at it the wrong way. They don’t go to Amazon. They go to Standard.
Standard designs and manufactures glass-lined reactors, ANFDs, dryers, heat exchangers, PTFE-lined pipes, and entire process systems. This is not commodity fabrication; this is high-spec, compliance-heavy, “if it leaks, someone gets fired” equipment.
Their revenue mix is refreshingly honest:
- Pharma: 81.79%
- Chemicals: 12.54%
- Others: 5.67%
Product-wise, the money comes from:
- Reaction systems (56.7%) – the crown jewel
- Storage, separation & drying (30.1%)
- Plant engineering & services (13.2%)
They don’t just sell boxes. They design, manufacture, install, and commission. Once you’re inside a pharma client’s plant, you’re not easily kicked out. Sticky relationships, high switching costs, and regulatory familiarity do most of the moat work here.
Question for you: if pharma capex cycles revive meaningfully, who benefits first—API makers or the guys selling reactors?
4. Financials Overview
Quarterly Comparison (Consolidated, ₹ Cr)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 192 | 140 | 183 | 36.7% | 4.9% |
| EBITDA | 29 | 26 | 29 | 11.5% | 0.0% |
| PAT | 20 | 16 | 20 | 28.0% | 0.0% |
| EPS (₹) | 0.96 | 0.81 | 1.01 | 18.5% | -5.0% |
Yes, margins cooled a bit, but volumes are doing the heavy lifting. This is classic scale-up
