Shaily Engineering Plastics Ltd Q2 FY27 Earnings Call: EBITDA Crosses Rs. 100 Cr, GLP-1 Pens Drive 78% Healthcare Surge

Shaily Engineering Plastics Ltd held its Q2 FY27 earnings call on October 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter, First Rs.100 Cr EBITDA Milestone

• Rs.320 cr consolidated revenue — up 24% YoY (vs Rs.257 cr in Q2 FY26) and 14% QoQ; highest-ever quarterly revenue.
• Rs.102 cr EBITDA at 31.9% margin — up 25% YoY and 22% QoQ; first quarter crossing the Rs.100 crore EBITDA milestone (vs 31.8% margin in Q2 FY26).
• Rs.61 cr PAT, up 20% YoY — PAT margin of 19.2% vs 20% in Q2 FY26, a modest sequential compression despite the EBITDA beat.
• H1 FY27 revenue of Rs.600 cr, up 19% YoY — EBITDA Rs.185 cr (+22%), margin up 60 bps to 30.8%; Cash PAT Rs.138 cr (+19%).
• Machine utilization at 52.5% — up from 47.8% in Q2 FY26, attributed to the growing high-value healthcare contribution and productivity gains.
• Balance sheet metrics as of 30 Sep 2026 — ROC 41.1%, ROE 29.7%, debt-to-equity 0.2x, fixed asset turnover 2x; CARE Ratings upgraded short-term facilities to CARE A1+ in October 2026 and reaffirmed CARE A+ (stable).
• Other expenses rose 45% QoQ — CSO Sanjay Shah attributed this to one-off costs plus a change in business mix, but declined to quantify the one-off component.

GLP-1 Pens Drive 78% YoY Surge; Canada Share at 100%

• Healthcare revenue of Rs.175 cr in Q2, up 78% YoY — now 55% of revenue vs 38% a year ago; H1 FY27 healthcare revenue Rs.318 cr, up 81%.
• 10.4 million devices delivered in Q2 — management on track to exceed the FY 2026-2027 guidance of 36 million devices, and expects FY27 volumes to exceed that threshold though it could not quantify the upside.
• 100% market share in Canada — management corrected the analyst's lower assumption as of Q2 FY 2026-2027; approvals also in place in Brazil, with supplies to multiple smaller geographies; no launch timeline for Turkey or Mexico, though management assumes first-mover advantage will follow.
• Realizations improved on mix, not price — revenue per device rose to ~168 in Q2 from ~158 in Q1 FY 2026-2027, as discontinued FY 2025-2026 insulin contract manufacturing was replaced by higher-realization GLP-1 volumes.
• Only three markets have launched so far — management noted insufficient data to comment on the FY 2027-2028 volume trajectory.
• Recalls had no impact attributed to Shaily — on the analyst-cited Ministry of Health advisory, MD Amit Sanghvi said recalls were announced by some potential customers; the dose issue is incorrect labeling, with responsibility at final assembly, packaging or distributors; management sees no volume impact in Q3/Q4 FY 2026-2027 or beyond.

Pricing Pressure Acknowledged, But Levers Intact

• Pricing pressure confirmed on pens — MD Amit Sanghvi acknowledged prior-call commentary flagging 10-15% pressure on pens, and said erosion is already built into all long-term contracts currently in place; he is very confident margins will be maintained (period unspecified).
• Capacity utilization of ~52% as of Q2 FY 2026-2027 — significant operating leverage yet to kick in; pen pricing carries indexation that passes inflationary material costs through.
• Gross margin recovered to 60% — ~70 bps above year-ago after Q1 cost pressures from West Asia freight and polymer costs; management prioritized margin resilience over volume-led consumer growth.
• Polymer pass-through lags of 2 to 4 months — varies by client (2 months for some, 3-4 months for others); management did not quantify a pass-through percentage.
• On-body injector economics superior — devices are highly complex with high capex and upfront development cost, but once in supply, margins are far higher than GLP-1s.
• UK subsidiary loss narrowing — consolidated-minus-standalone EBITDA loss of roughly Rs.7 crore in H1 FY 2026-2027 (analyst's calculation); management confirmed the UK subsidiary will be EBITDA and PAT positive for full year FY 2026-2027.

TOBI Launch, On-Body Push, Semiconductor Entry

• TOBI Reusable Auto Injector launched at CPHI in October 2026 — ~80% of development complete; reusable for over 200 injections and conservatively 70% more sustainable than a disposable two-step auto injector; targeted at innovator pharma rather than generics, with a partner being sought for final design features.
• Over 1 billion auto injectors end up in landfill every year globally — management cited this figure across Mounjaro/Zepbound and Wegovy alone, alongside EU and global waste-reduction regulations that innovator pharma must meet, as a TAM driver.
• TOBI emergency use: 2 active customers in development — clinical batches due end of calendar 2027, with earliest commercialization expected end of calendar 2028; on-body Mira is close to finalizing a customer, after which a 14-month timeline begins to deliver clinical batches (customer not yet signed).
• Semiconductor packaging trial production expected in Q3 FY 2026-2027 — commercial shipments expected in Q4 FY 2026-2027; tray revenue on track to commence in Q4 FY 2026-2027 from the existing facility; targeting direct waste tapes, carrier tapes and wafer boxes.
• Korean technology partner works with 150+ customers globally — Shaily is replicating the partner's manufacturing process from their plants in Korea, Taiwan and India, which management expects to speed customer/product acceptance; Shaily will do contract manufacturing for the partner and export to Korea or Taiwan.
• India OSAT/TSAT demand context — 5 players are coming into India with OSAT and TSAT plants expected to use a combination of JEDEC-type trays and carrier tapes; portfolios still evolving, so an exact market size is difficult to estimate; margins expected better than the consumer or industrial business average (no numeric target).
• Consumer electronics capex of at least Rs.100 crore "still makes good sense" — per Sanjay Shah, though Amit Sanghvi noted it could land at Rs.100, Rs.120 or Rs.80 crore; too early to finalize (period unspecified).

Consumer Stabilizing But Below Year-Ago; Industrial Growing

• Consumer revenue of Rs.116 cr, down 14% YoY — flat sequentially and stabilized over two quarters, but still below year-ago levels; business confirmation received for a new product from an existing customer and higher volumes from another.
• Consumer demand weak in Europe and the US — management declined to estimate recovery timing, saying it depends on how the global situation evolves and how inflation is tackled in these markets.
• Portfolio breadth strategy over the last four to six quarters — consistently added newer consumer products so the company can ramp across different products as volumes pick up.
• Industrial revenue up 23% YoY to Rs.29 cr — driven by automotive, appliances and consumer electronics customers; business confirmation for 7 new power tool products and new knobs from an appliance customer.
• Exports fell to 62.9% of H1 FY27 revenue from 71.7% — management attributed the shift to healthcare growth supplying Indian pharma customers who in turn serve global markets.

FY27 Guidance On Track; FY28 Targets Framed as Non-Guidance

• FY 2026-2027 device guidance of 36 million pens to be exceeded — management expressed a "fair bit of confidence"; the 25 million pens capacity line enters qualification in early November 2026, with commercial sales expected from December 2026 (Q3 FY 2026-2027) if qualification goes well.
• FY 2027-2028 target of 50 million pens, "give or take 15%" — management is targeting the analyst's stated figure while explicitly stating this is not formal guidance.
• FY 2026-2027 pen mix likely 70-30 between GLP-1 and insulin pens — insulin pens were deprioritized in FY 2026-2027; with added capacity, the company expects to take additional insulin pen quantities in FY 2027-2028.
• Consumer business expected to stay flat on a net level in FY 2026-2027 — reiterating guidance first given on the Q4 FY 2025-2026 and Q1 FY 2026-2027 calls; growth eyed for FY 2027-2028, contingent on geopolitics and the global situation.
• Innovator onboarding is a 3-4 year journey before revenue flows — management is "fairly confident" of cracking 1-2 innovators by end of calendar 2027, but cautioned revenue will not start flowing from 2028; participation typically comes on new molecules entered at the customer's Phase 2/Phase 3, with a ~3-year journey to the customer's own approval.
• Significant scale-up opportunity in consumer electronics and semiconductor packaging over the next 36 months — management declined to quantify FY 2027-2028 revenue for these segments; consumer electronics supplies of the 5 components begin between Q3 and Q4 FY 2026-2027.
• GLP-1 device TAM context — management said between semaglutide and tirzepatide, potentially ~1.5 billion devices could be made every year (period unspecified), mostly auto injectors as the US is 100% on auto injectors for Wegovy, Zepbound and Mounjaro; semaglutide generics have launched in India (March 2026), Canada (April 2026) and Brazil (August 2026), which management expects to grow device demand via affordability.