Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
SHAILY ENGINEERING PLASTICS LTD (NSE: SHAILY) Q4 2026 Earnings Call dated May. 20, 2026
Corporate Participants:
Amit Sanghvi — Managing Director
Sanjay Shah — Chief Strategy Officer
Analysts:
Shaleen Kumar — Analyst
Akhil Parekh — Analyst
Harsh Shah — Analyst
Unidentified Participant
Vishal Manchanda — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY26 earnings conference call of Shelley Engineering Brashtex Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal a conference specialist by pressing star then zero on your touchdown phone. Before we begin, a brief disclaimer. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not the guarantees of future performance and it may involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Amit Sanghvi, Managing Director of Shirley Engineering Plastics Limited. Thank you. And over to you sir.
Amit Sanghvi — Managing Director
Thank you very much. Good afternoon and a very warm welcome to all the participants. I would like to thank you for joining us today for shailey Engineering Plastics Q4NFY 26 earnings conference call. I have with me Mr. Sanjay Shah, our Chief Strategy Officer and SGA, our relations advisors. I hope everyone has had the opportunity to review our financial results and investor presentations which have been uploaded on the stock exchange as well as company’s website. Before discussing business performance, I would like to briefly comment on a broader operating environment.
Though the quarter has witnessed heightened geopolitical uncertainty, particularly due to ongoing tensions across global trade corridors which impacted freight movement, supply chain and input cost dynamics for the plastics and polymer industry. This translated into raw material price inflation and selective logistical disruptions across certain export routes. Despite this environment, we were able to navigate the quarter in a stable manner supported by our diversified customer base, long standing customer relationships, disciplined execution and very strong operational planning coming to key business developments during the quarter.
Shiley achieved a landmark milestone with the successful commercial launch of our Shiley Harmony and Shilee Neopen injectors with multiple customers for Semaglutide in India as well as other global markets. We have also today made a press release announcing the significant milestone which can be found on our website. This is a significant achievement for us. It represents years of development, qualification and regulatory work coming to fruition at commercial scale. The Semaglutide market is one of the fastest growing drug segments globally and our positioning as a supply partner in this space is a strong strategic asset.
Injectors manufactured by Shaile for Semaglutide have been successfully launched by our customers in the Canadian market. This marks our entry into one of the most regulated and quality demanding pharmaceutical markets in the world and is a strong validation of our manufacturing standards, regulatory compliance and the trust our customers place in US as a supply partner for critical drug delivery devices. In addition to the launch in Canada, Shailey’s Penn and its customer are the first to receive tentative approval in the US market for Semaglutitis.
Also, one of our customers received European market authorization for teriparatide. These approvals are important validation milestones. They affirm the quality and the regulatory compliance of our manufacturing platforms across multiple geographies and therapeutic I am pleased to share that we successfully commenced commercial supplies to our consumer electronics customer during Q4FY26. This is a business we have been preparing and qualifying for over the past several quarters and the commencement of commercial deliveries marks an important new growth vector for Shelley.
We are now an active participant in the consumer electronics precision component ecosystem, a space characterized by high complexity, tight tolerances and less than a handful of players. We have signed a supply agreement with the Korean company for the manufacture and supply of semiconductor trays. This marks Shalee’s entry into the semiconductor supply chain, a strategically significant development at a time when India is actively being as an alternative manufacturing destination under the China plus one policy framework.
Semiconductor trays are precision critical components and our ability to win this business reflects our manufacturing depth and the trust global companies are beginning to place in Chile in the industrial vertical. We received new business confirmation from customers for power tool LED light components. These additional diverse industries and expand the range of precision engineering applications that Shelly offers from automotive components to power tools and lighting infrastructure. Reflecting the confidence in Shilee’s next phase of growth and the multiple new opportunities ahead of us, the Board of Directors have approved an enabling resolution to raise up to 500 crores.
I would like to clarify that this is intended to be an annual affair. The company will seek a fresh enabling resolution each year to maintain financial flexibility and ensure that capital is always available to seize high quality, high growth opportunities without delay. This is not a signal of any specific fundraise plan, but rather a disciplined approach to being prepared with capital. As Shaile continues to evolve into a diversified IP led global manufacturing platform serving healthcare, consumer electronics, semiconductor trades, industrial and other consumer segments, the pace and scale of opportunity demands that we remain agile.
Having this resolution in place ensures that if and when a compelling, large time sensitive opportunity presents itself. The company is able to the company remain ready for it. We’ve also taken some significant steps organizationally to strengthen our operations to deliver the scalar we have planned by onboarding Mr. Joe Kam an announcement was made earlier in February regarding Shirley hiring its Chief Operating Officer for healthcare. I’m very happy to announce that Joe has hit the ground running and is taking real ownership and proclaiming great leadership, taking Shailee’s operation strengths further.
He has a very disciplined approach and is a stickler for quality, something that we hold very close to our hearts at Shailee. Coming to Segment Wise Performance the healthcare segment was the standout performer in Q4FY26 with revenue doubling in Q4FY26 for the full year, healthcare revenue surged 139% to 393 crores, contributing 40% of our consolidated revenue up from 21% in FY25. This shift in revenue mix is the central storyline of FY26 and reflects the compounding benefits of our multi year investment in R and D and injector platforms and drug delivery capabilities.
The consumer segment unfortunately degrew in Q4. 26 primarily reflecting weaker market demand for home furnishings across Europe and the US Our two largest export markets for this vertical. For the full year, consumer revenues were at 512 crores down 9%. While the near term environment has been softer, I want to emphasize that the consumer business continues to add new customer programs and we remain focused on building revenue streams in this segment, particularly through consumer electronics and semiconductor trays.
The industrial segment continues to grow with Q4FY26 going at 60% year on year. For the full year, industrial revenues grew 41% to 87 crores reflecting new customer additions and expanded engineering applications. We secured two business from customers our tool, both of which speak of the increasing complexity of application that Shirley is now being entrusted with. As we look ahead to FY27, our priorities are clear. Continue scaling the healthcare vertical, build and scale the Abu Dhabi facility on plan deep consumer electronics and semiconductor programs and restore growth momentum in the consumer home furnishing segment.
The building blocks are firmly in place and the team has demonstrated consistently that we have the capability to execute as we have consistently maintained, we expect the company to deliver. I apologize, sorry. I now hand over the call to Sanjay to walk you through the operating and financial highlights in more detail. Thank you very much.
Sanjay Shah — Chief Strategy Officer
Thank you. Amand Good afternoon to everyone on the call. I will start with the operating metrics for the quarter and full year ended 31st March 26th and then move on to the financial performance. Operationally, we continue to improve efficiencies across our manufacturing network. Machine utilization improved to 47.6% in FY26 compared to 42.2% last year. Exports continue to remain strong and contributed around 68% of our revenue in FY26. Let me now summarize the consolidated financial highlights for Q4FY26 Revenue stood at 237 crores as compared to 218 crores during Q4 reduced the 525A growth of 9% year on year.
EBITDA stood at 69 crores as compared to 55 crores in Q4FY25A growth of 27% year on year. EBITda margins stood at 29.3% and increase of 420 dips over Q4FY25. FAT stood at rupees 40 crores as compared to rupees 29 crores during Q4FY25. Growth of 40% year on year at margins stood at 17% an increase of 390bps over Q4FY25. Coming to segmental revenue breakup for Q4FY26 in the consumer segment, revenue split at 102 crores as compared to 148 crores during Q4FY25, a degrowth of 31%. Amit in his opening remarks basically explained the reasons why this degrowth happened.
In the healthcare segment, Revenue stood at 113 crores as compared to 56 crores during Q4FY25 a growth of 110%. In the Industrial segment, revenue stood at 22 crores as compared to 14 crores during Q4FY25, the growth of 60% now coming to FY26. Consolidated Highlights Revenue stood at 991 crores as compared to 787 crores during FY25. Growth of 26% year on year. EBITDA stood at 288 crores as compared to 178 crores during FY25 reflecting a growth of 61% on a YoY basis. EBITDA margin stood at 29%, an increase of 630 bps over FY25.
PAT stood at 170 crores as compared to 93 crores during FY25 a growth of 83% year on year. PAT margins stood at 17.2%, an increase of 540 bps over FY25. Cash PAT for FY26 was reported at 219 crores as compared to Rupees 135 crores. During FY25, a growth of 62%. Year on year our ROCE and ROE stood at 35.8% and 26.9% respectively as on 31st March 2026. Our debt to equity stood at 0.3x and our fixed asset turnover ratio stood at 1.7x as on 31st March 2026. Now coming to segmental revenue breakup for FY26, consumer segment revenue stood at 511 crores as compared to 561 crores.
During FY25, A RE growth of 9%. In the Healthcare segment, revenue stood at 393 crores as compared to 161 crores. During FY 25, a growth of 139%. In the industrial segment, revenue stood at 87 crores as compared to 61 crores. During FY 25, A growth of 41%. That concludes the update from my side. We will now open the floor for questions.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Shaleen Kumar from UBS India. Please go ahead.
Shaleen Kumar
Yeah, hi. Am I able?
Operator
Yes sir. Yes.
Shaleen Kumar
Yeah, hi. Congratulations, Amit. Congratulations.
Operator
Great set of numbers and certain milestones in this quarter. So to begin with, let’s talk about the health here. So Amit, my question is like would like to take, you know, what are your customer talking about? So are you seeing. Basically what I try to understand are your customers are coming back and you know, asking more from you given, you know there’s a good reception of, you know, semaglutide in India and other markets have opened up. Are there instances of like that to begin with?
Amit Sanghvi
Yes. Given only two launches in Canada, we are asked for more profit and you know we’re doing what we can to install more capacity as fast as we can to supply that product. So there are instances being asked for more certainly.
Operator
Okay, that, that’s basically a great, great indicator now since you touched upon the capacity. So we have 25 million capacity came up in March and then we had 30 million right earlier. So are you using part of the 30 million also to supply semaglutide?
Amit Sanghvi
No, semaglutide is only from. So we had the 25 million capacity that we installed in March is currently running at roughly 45% utilization level as in not utilization at operational efficiency. So the, the speed is, you know it’s a process to get into that final optimal speed. We’re going through that process of scale up. We have consistently been producing at these levels for the last 45 days which means that we now be enhancing it coming months from the 30 million of original capacity. That is a mixed capacity between several product lines including insulin, including paratide, including you know, several of our other including the auto injectors, etc.
So there’s only a small portion of that capacity which is being used for semaglutide. The additional 25 million that will come in by July, August is purely for semaglutide which will be again used for the global markets where the product is launched.
Operator
So what kind of optimal capacity we can achieve in these lines? Both the lines.
Amit Sanghvi
See our target is that you know by the end of the year both lines should be able to produce at 65 to 67 part per minute effect which gives us a combined acidity of both these two new lines of around 40 to 42 million pens combined.
Operator
So that’s where so basically 40 to 40, 42 million is something which is the optimal 40 to 42 million pen is the peak utilization or the optimal utilization
Akhil Parekh
For
Amit Sanghvi
This year? For this year, yeah. And then, and what, you know, as you learn more about the lines and you figure out what upgrades are needed to. To take it further.
Shaleen Kumar
Got it.
Operator
I’m sorry to interrupt. Mr. Salvin, I would request you to please come back in the queue for further questions. Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants please limit your questions to two per participant. Thank you. The next question comes from the line of Harsha, the GM Financial. Please go ahead.
Harsh Shah
Yeah. Hi team. Thanks for the opportunity. Firstly, congratulations on the new customer win in semiconductor and consumer electronics. So two questions from my side. Firstly on the semiconductor client with which you have kind of signed an agreement. Right. How should one think about in terms of the supplies will be made to a fab player or an OT clear. And is the understanding correct that these supplies would be happening in India
Sanjay Shah
So harsh. It is basically going to go to the OSAT players currently eventually when FAST gets set up in India it will also go to the fab players, yes, supplies will currently be made in India, but there could be a possibility where we could look at exports also to this company
Harsh Shah
And
Sanjay Shah
Basically be looking at supplies in India.
Harsh Shah
And when should one expect the supplies to start? From
Sanjay Shah
Quarter four of the current financial year.
Harsh Shah
Got it. Okay. Secondly, on the consumer electronic segment, right, so you have mentioned that there’s been. The commercial supplies have already begun. So your. Is this a case similar to semiconductor vertical wherein the supplies would be happening in India, or is there a possibility that we could even export to say, country like China or somewhere else? And also related to this, how large is this opportunity for this specific client? If you could give some color on it,
Sanjay Shah
The supplies will happen both in India as well as it will be exported. In terms of an opportunity, I think harsh. Last time on the call, Amit had mentioned over a period of 5 years this opportunity could be fairly large. And he had mentioned the numbers also at that point of time.
Harsh Shah
Got it. Just last, if I can squeeze in. This question is to Amit, sir, if you have to kind of give a roadmap, say five years from now, which vertical are you most excited about, say in terms of the potential or the scale? Or rather, let me put it this way. If you have to rate in terms of say the absolute size that Shelley as a company can achieve, say in all the newer vertical as well as your existing vertical, how would you rate them, say between healthcare, consumer electronics, semiconductor.
Amit Sanghvi
I would say first it’s a tough question because nobody knows what happens five years out, but I would say healthcare and consumer electronics represent the two largest opportunities. Which scales faster is a very difficult question. And as you can imagine, the consumer electronic market is significantly larger than the pen market. But there are very limited number of players in the pen market. So we as being one of the few players present in that market, have a very significant opportunity to scale up those two.
I would put either number one and two or both of them would be number one. Semiconductor would be the second largest scale of opportunity we see. And then the industrial and consumer, Industrial and consumer would more or less be together. Consumer is going through a bit of a rough time right now, but it will bounce back. You know, we’ve gone through these cycles in the past. This is not the first of its time. So it will bounce back at some point.
Harsh Shah
Got it. Perfect. That was helpful. I’ll get back in the queue. Thank you.
Operator
Thank you. The next question comes from the line of akil Parikh with 361 capital. Please go ahead.
Akhil Parekh
Yeah, thanks for the opportunity and congratulations on a solid execution. My first question is on the bench side, healthcare side,
Operator
Will you be able to quantify the volumes which you would have done approximately for FY26? Because if I recollect well we were guiding for around 26 million 25, 26 million of if we were able to assume. That’s my first question.
Amit Sanghvi
Yeah. So Akhil, is it? Yeah,
Sanjay Shah
Yeah.
Amit Sanghvi
Akil. I don’t have the exact number but I remember the last time I saw them they’re in the range of 23.3 or 23.5 million devices. Now I don’t know the exact tally off the top right now but they’re, they’re a little lower than what we had said and primarily because our capacities are not able to produce what we had projected.
Operator
Sure. This is an. And second on the capacity ramp up. Right. The newly capacity new additions, what we have been doing, I believe that we’ll be adding total 15 by July August as you indicated already added. Is it fair capacity of 3 million should get from by end of FY28.
Amit Sanghvi
By FY28. I would, yeah. You know I think what we’re targeting is 40 million 35 to 40 million pence from that capacity should more or less be you know in, in supply by by end of FY28. FY28 is March 27th. Right, sorry, March 28th. Yeah.
Operator
Thank you.
Amit Sanghvi
The
Operator
Next question comes from the line of Pavan Tripani with Investec please. Hi sir, thanks for the opportunity. So first question is related to consumer electronics. So just wanted to understand how should one look at margin profile Roc and incremental Capex which could which you might need for this category.
Amit Sanghvi
It’s a difficult question and the reason is at all numbers first are not bad, they’re quite good but they only happen when you have scale. So if you look at Shailey’s history, even consumer when we didn’t have scale in home furnishings business our margins were EBITDA margins were single digit. Profit margins were maybe very low single digit. So consumer electronics is going to go through a cycle. Maybe the ramp up will be a lot faster but it will go through a cycle where until you have a certain amount of scale you will not be able to see great margins.
And the reason is very simple. Because it’s a technically challenging manufacturing environment. Your overheads are going to remain high even when you don’t, even when you have less revenue. So you know a certain scale is necessary. Maybe that scale is $20 million, $15 million or you know Somewhere around there before you actually start seeing good margins come in.
Operator
Any indicative range should be in your. About consumer wear margins. We
Sanjay Shah
Would not be able to give individual margins. Yeah,
Amit Sanghvi
Yeah.
Sanjay Shah
It’s a B2B business and I think you understand the reasons for that.
Operator
All right. And any incremental capex that we need for this business.
Sanjay Shah
So we have said that we would need to set up a plan down south. We are evaluating, but our estimate is we will need an initial capex of somewhere around 100 crores when we set up the plant.
Operator
All right, Second question is related to sir, I applicator. So we have recently commissioned machines for I applicators. Just trying to understand at what stage we are right now and when should we expect incremental revenues flowing in from this category. And also if you can throw some light on what could be the market opportunity over here.
Amit Sanghvi
Yeah, we’ve done for a single customer at the moment. Market already exists for that customer. We won’t be able to give you name but the market already exists and you know, it’s a substitute product for one that they are importing. Again, it’s meant for regulated markets and we have factored the commercialization of the iapplicator in the current, current financial year.
Operator
Thank you. The next question comes on the line of True Sitlani with Everflow Partners. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Am I audible?
Amit Sanghvi
Yes.
Unidentified Participant
Yeah. Congratulations on the good setup number, sir. So my first question to you is what are the entry barriers for someone looking to enter this space and how long is the process for a partner to change or add an additional supplier to their drug filing made with regulators in select, let’s say Canada and Brazil.
Amit Sanghvi
Okay, we’ll talk about Canada. If Canada, you want to add another device to your filing, you have to run the full program, the full development program. It’s quite, it’s time consuming. I would say nothing less than 24 to six months. And one really needs to look at cost and risk. So cost is not going to be less than what you’ve spent on the first program and then the risk of potential, you know, failure to get approval. But it’s not impossible.
Operator
I hope that answers.
Amit Sanghvi
Look, I think on average, you know, companies, generic companies are spending 100, 150 crores, I think on a program. So I’d say probably 70, 80% of that you’d need to spend to add another device.
Unidentified Participant
Okay, sir, that is helpful. My second question is of the filings made in various geographies, especially Canada and Brazil. What percent of the filings have been made with Shelley’s device.
Amit Sanghvi
I stated this in the past. I think if I look at all the top, the first six filers in Canada, 70% is ours. I believe 70% is ours. In Brazil, it’s a little bit more difficult because in Brazil it’s a lot of partnership filings, not direct from our customers and we are not privy to all the partners in Brazil, but I think we will be. I’m confident we will be in the first wave of Brazil approvals.
Unidentified Participant
Okay, sir, thank you. That is all from my side.
Sanjay Shah
Two customers who have got approval, two pharma companies who got approval in Canada. Both are virtually.
Unidentified Participant
Okay, sir,
Operator
Thank you. The next question comes from the line of Danil Desai with Total Capital. Please go ahead.
Akhil Parekh
Hi, good afternoon, everyone and congratulations for a very strong performance. So my first question is, you know, you mentioned
Operator
That this year we ended the year with 23.5 million kind of banks. And I think we were thinking about around 36 million next year. 36, 37 million and maybe 50 million closer to 50 million the year after that now that the Canada approval is in place for the two large players. But Brazil is still nowhere in sight and India is picking up. So given all this, do we still hold on to this number?
Amit Sanghvi
I mean, look, for the current fiscal year that we’re in, you know, obviously our order book is frozen. So it’s now about how quickly our capacities come up and, you know, how effectively they’re able to produce. These are very, very complicated lines. So it has, it doesn’t have a whole lot to do with our skill set to produce. It has more to do with, you know, how quickly can the lines be running at the speed they’re specified. So I think for the current year, I’m fairly confident we should be on track.
But of course, unknown at the moment is the line that comes in in August, you know, just not installed yet. So I think we’ll be able to give you a better perspective on this probably towards our earnings call in or our earnings call in September. September. October,
Sanjay Shah
Yeah. Okay.
Operator
Okay. So a follow up on that, sir. So our, you know, supply to both the players in Canada, you know, would have started and will ramp up. So unless if, if there is any bottlenecks on the production side, will that supply suffer? How should we look at that?
Unidentified Participant
Bottlenecks on the.
Operator
So you’re saying that we are ramping up the production, right, that are still in the early phases of production, ramp up. So if that doesn’t go as per plan, is there any Risk to the supply to any of these customers.
Amit Sanghvi
If we can’t supply enough, then there is a risk. Right? Yeah.
Operator
Okay. Okay. So second question is, you know we are working with the innovators, you know on the new project. So if you can give any update on that. And you know you talked in the initial commentary that Abu Dhabi Capex we are going and that’s one of the you know, kind of, you know, roadmap for the current year with the current geopolitical thing. Any kind of, you know, uh, rethinking on that project or any thoughts on that. So these two questions
Amit Sanghvi
On the geopolitics, you know, we don’t, we don’t see it as it being a long term impact. If anything, you know, it’s a very, very short term impact. Again, it’s not really impacting our project timelines. We have factored in adequate additional time for bringing up the facility in Abu Dhabi and we’re probably eating into some of that buffer at the moment. Beyond that, you know, it’s a great region. You’ve got significant amount of benefits on certainly on operational costs, ease of supply chain, availability of really, really international talent.
You know, as you can imagine be very difficult for us to while we have done a good job, it’s difficult for us to attract very good talent in a city like Baroda. So
Akhil Parekh
You
Amit Sanghvi
Know Abu Dhabi becomes overall a much friendlier place to scale this business. And you know, if we were looking at healthcare has been growing at almost 100% every year. If we want to continue that momentum, we need the right people. And increasingly you know what we pay for talent in, for expat talent in India is much, much more than what we would in a country like Abu Dhabi.
Operator
Got it. And sir, on innovative part.
Amit Sanghvi
Yeah these conversations are advancing. Advancing. Well that’s all I can say until we have some breakthrough, you know I won’t be able to divulge any further information.
Unidentified Participant
Okay, thank you. That’s it for myself.
Amit Sanghvi
Thank you.
Operator
Thank you. The next question comes from the line of Bhavika with Niveshe. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Am I audible?
Amit Sanghvi
Yes.
Unidentified Participant
Just one clarity on the previous commentary you did on the capacity utilization as you said that the capacity which is live in March we are doing 45 of our operational like efficiently utilized the facilities currently. So by the end of FY28 when we expect like along with the the 25 million capacity which is going to come in July. And so I just want for a number for the FY27 and 20 that what optimum utilization we can expect from the total capacity which will have by the end of FY27 and 28.
Amit Sanghvi
I think, you know, you
Sanjay Shah
Partially answered that question. I’ve
Amit Sanghvi
Answered these questions partially, but I’ll just go through it again. Look, our projections are what, 36 million pens this year, roughly 50 next year. So you know, when you look at all the smaller capacities we have, for example on Tristan, on Tobii, those products aren’t in supply, right. So when they get approval and they get into supply capacities will be utilized. So on Semaglutide we have, let’s say for example, a total of 50 by the end of the year we’ll have about 50 million capacity. So we intend to fully or as fully as possible utilize that over the next two years and then we’ll have capacity on insulin, which we also intend to utilize at least up to a 60, 70% level.
So that’s roughly, you know, as capacity stands today. So you can look at it as a, as a range of, you know, somewhere between 40 to 60 million kind of pen at the end of 24, 30 months from now.
Unidentified Participant
And the second question I have on the margin side, like we did a quite good margin in this year, so do we expect this to sustain over time with the semiconductor segment coming in and along with the Dubai capacity, Abu Dhabi capacity?
Amit Sanghvi
Short answer. Yes.
Unidentified Participant
Okay. And it will be like just sorry, yeah,
Amit Sanghvi
We don’t look at Shirley from a quarter on quarter perspective. Otherwise the margins are sustainable.
Unidentified Participant
Sustainable like at 28% and more.
Sanjay Shah
I think what we’ve been saying is if you look at more on a year, on year basis, margins will be sustainable and we see margins improving. Okay,
Unidentified Participant
Got. We would not want to
Sanjay Shah
Get into numbers.
Unidentified Participant
Yeah. Thank you for answering.
Operator
Thank you. The next question comes from the line of Aman with Astute Investment Management. Please go ahead.
Sanjay Shah
Good evening team. Just two questions, Amit. First, since our product was launched I think last week in Canada
Operator
By both our customers, what has been the initial feedback from the customers as well as. Can you also talk about the feedback from India launch? Both two, three devices which we have launched in India. Any complaint and all those things we have received?
Amit Sanghvi
Yeah, I think we. Two complaints. One, one was a user error, it wasn’t related to the device and one was related to the device. It was slightly. We had an issue on one of our printing, you know, we print numbers so there was a small issue but in terms of performance there have been no complaints. There is a particular Reddit forum that I tend to Read from time to time, which you know has kind of different user experiences in India at least on taking different generic semaglutide. So happy to say at least that, you know, people seem to have trust in the, in the Dr.
Reddy’s product which is also I believe marketed by Torrent.
Operator
Sure, that is helpful. Second question is, so annual launch has happened but in your rough estimate, when do you expect the other three big geographies say Brazil, Turkey, Mexico to happen? Even rough estimate is okay for us.
Amit Sanghvi
Brazil, we’re expecting very soon. I don’t know if soon means end of this month, end of next month, but you know, somewhere Brazil should come in.
Operator
Okay. And any update on Turkey and Mexico? These are also big geographies.
Amit Sanghvi
I think they will only happen after Brazil. Honest, I’m not sure if they’re able to come before.
Unidentified Participant
Okay, these are from my side. Thank you.
Operator
The next question comes from the line of Ankit Gupta with Bamboo Capital. Please go ahead.
Shaleen Kumar
Yeah, thanks for the opportunity and congratulations for a great year. So
Operator
On our UK subsidiary for the past two quarters, if you look at it, we have seen like the lowest margins as well as revenues over the past two years. And so earlier when we used to, in the calls we used to tell that we should be able to maintain the growth rate and margins there. So how should we look at the performance of the UK subsidiary with the commercial launch on the SEMA front happening across geographies and most of the customers would have been already onboarded to the platforms.
Amit Sanghvi
We’re doing slightly more longer term projects in the UK so agreements, maybe, you know, engagement with customers that are going into multiple years, milestone based revenue, sometimes you’re not able to recognize a certain revenue. But we’ve significantly scaled the UK ops from a human resource perspective. Again, you know, doing some of these more complex projects. See we’ve done all the pens and auto injectors possible. We cannot be only doing pens and auto injectors. Right. So there is a next generation of drug delivery devices that we are working on and those will be in development for a substantial period of time, be three years, four years, five years.
Now we will still maintain margins in the uk but you will need to look at, you know, we’re offering these services, similar services between UK and uae. Right. Our teams in both geographies kind of work in unison. So look at, look at a combined margin for the UK and UAE if you were and that that will give you a better perspective.
Operator
So this margins that we had reported prior to the second half, should that not be Considered going forward in our financials like from FY27 onwards.
Sanjay Shah
I think you should probably look at margins more on a year on year basis.
Operator
Yeah.
Sanjay Shah
Okay. A quarter on quarter basis
Operator
And growth also should bounce back.
Sanjay Shah
Yeah.
Operator
Okay. Okay. And the, the second question was on the purpose of the fundraise. Of course you have mentioned everything but there was an interesting line that you had used that you know, time sensitive, capital intensive. Intensive and competitively raise. You know. So if you can elaborate more on this like what kind of capital intensity will be required here? Is it an urgent project where you know. Yeah, you, you. You highlighted that you know will be commencing supplies from Q4. So if, if you can elaborate more on this.
Amit Sanghvi
Comments. I think those were very related. The enabler. The resolution for fundraise is essential. Just we’re not getting any capital right now. I mentioned that categorically in my speech. But what we are doing more and more now are discussing projects where the scale and volume of the projects capex required are very very high.
Unidentified Participant
Okay.
Amit Sanghvi
But you know we’re looking at setting up capacities for 15 devices a year. I’m not going to be service that from India or from Abu Dhabi. So be a one off. And this is why the resolution is so that if such an opportunity arises we’re able to quickly act on it.
Akhil Parekh
Okay, thank you so much.
Operator
Thank you. The next question comes from the line of Raman KV with Sequen Investments. Please go ahead.
Unidentified Participant
Hello sir, I just have two questions. One is with respect to the semiconductor tray, what will be our total addressable market once we start manufacturing to multiple clients? As of now we are doing only for one Korean customers. But what do you think is the total addressable market for this product?
Sanjay Shah
You will be looking at supplying to everybody who’s setting up semiconductor manufacturing in India.
Unidentified Participant
So out of the. Let me just rephrase the question. Question. I just want to understand out of the total value chain of the semiconductor, what percentage of this in terms of value will be this product?
Sanjay Shah
I think this is more of a volume game where this is a consumable and would be needed by the semiconductor plants on a day to day basis.
Unidentified Participant
Okay.
Sanjay Shah
Obviously the chip value will be much higher. It’s a very decent value.
Unidentified Participant
Okay, understood. So answer. My second question is with respect to the pen injectables we have an existing capacity of 30 million and we have added 25 million pence in March and we are planning to add another 25 million by July August. So what will be the incremental revenue from this newly addition 50 million once it reaches your optimum efficiency of like 60, 65% in next two, three years.
Sanjay Shah
I think we have given out a total revenue number which is possible from the capacity. You should look at that instead of a incremental number which will be difficult to talk about it.
Unidentified Participant
So total as in with respect to the total 80 million. Right. What is that one? Revenue
Sanjay Shah
Based on investment and successes which we have. You could probably look at a 2 to 2.5 as. That’s the way to look at it.
Unidentified Participant
Understood sir. Thank you. Thank you sir.
Operator
Thank you. The next question comes from the line of Aman Tadnani with solidary investment managers. Please go ahead.
Akhil Parekh
Am I audible? Yes,
Operator
Yes.
Akhil Parekh
Thanks for the opportunity. And Sanjay, I have two questions. Basically the first one you last quarter that you are seeing some rejections. I think the machines were rejecting 30%. We just wanted an update on that. But what is the rejection rate right now in healthcare and any other manufacturing challenges that you could face at scale?
Amit Sanghvi
So rejection has come down to 8% on the, on the. And the speed has also gone up. Now what happens? Increase speed and we run it for several shifts. We come across a breakdown so that breakdown needs to be resolved permanently so that it doesn’t affect the speed again. So at the moment we are running you know, at roughly 30, 35, 34 parts per minute on an 80 parts per minute line. Which is why I said that, you know, we’re running at 45% overall equipment efficiency but the rejections are down substantially.
So yeah, it’s work in progress. It’s should be, I don’t, I mean it’s not an impossible task. So it’s just a matter of time
Akhil Parekh
In terms of learning from this independent capacity that came in seven. When you again come up with a newer capacity of additional 25 million over there, is it fair to assume that the initial rejection could be low given the learning curve you would have had till then?
Amit Sanghvi
Yes. Yeah. It’s not going to be zero but it will be lower for sure. And so much r learning. I think what we need to start doing is, you know, we look at a, an investment cycle from triggering the investment to it going on stream of about 12 months. I think we need to look at 18 to 24 months now. So we have to initiate the builds. These are very, very complex lines and as you can imagine there’s also a handful of suppliers globally who make these lines.
Akhil Parekh
Second question is a few more big areas that you’re looking at now that is consumer electronics and semiconductors. So I just wanted to Understand that what sort of maybe hiring or depth in talent you’re looking for in these areas and when would that hiring begin.
Amit Sanghvi
For consumer electronics? We’re not doing anything in the Middle East. Middle east is purely healthcare. And hiring will begin towards the. Towards maybe if, you know, quarter one, next fy, all the way into September, October next year.
Akhil Parekh
Would that be that sort of hiring or would it be more manufacturing related?
Amit Sanghvi
No, Joe is the chief operating. I don’t need two of them. You know, he’s responsible for the India side. He’s responsible for any site we put up globally. So the team
Akhil Parekh
Electronics and semiconductors similar to that level, you would be looking for that or maybe not that complex. So you may not look for that.
Amit Sanghvi
I think what we need on the consumer electronics side is a very high degree of technical expertise rather than organizational expertise. We might lean towards someone with much higher technical expertise and maybe less administration or organizational expertise. But again, you know, it’s. It’s candidate to candidate. We kind of take a call when we evaluate candidates.
Akhil Parekh
One last question. The semiconductor order that we got to speak about it, that time it took for us to qualify, how many players were Shirley competing against and what is our age in this product? That is also. Thank you.
Amit Sanghvi
Sorry, I just. Too much echo in your. On your line
Akhil Parekh
In the semiconductor order. Just can you qualitatively speak about it in terms of the time it took for you to qualify, how many players Shelley was competing against and our age in this form of players.
Amit Sanghvi
Sanjay, you want to take that? I mean, I really don’t know how many players competing against, to be honest.
Sanjay Shah
There was just too much of echo, so I couldn’t. Wouldn’t hear properly.
Amit Sanghvi
Question is, please use your handset.
Shaleen Kumar
Am I audible now?
Amit Sanghvi
Yes.
Shaleen Kumar
Yeah. Sir, in the semiconductor order, I just wanted to understand qualitatively that the time it took for us to qualify and how many players were Shelley competing against and our basically Edge or USP in this product basis which we got selected for this order.
Sanjay Shah
I think the reason we were able to tie up with this customer is basically because of the technical competence which we have. While the product looks very simple, it’s extremely complicated and it’s made of conductive plastic. So the key technical skills required for molding the product. I don’t know how many people were in discussion, but I’m sure they would be in discussions with multiple people. But then we have seen the way we have looked at it. We’ll be the sole manufacturing partner in India.
Shaleen Kumar
Got it, sir. I’ll get back in the View. Thank you so much.
Operator
Thank you. The next question comes from the line of hina with DAM Capital. Please go ahead.
Unidentified Participant
Yeah, hi sir, am I audible? Yeah, go ahead. Yeah, yeah. This is just, you know, continuation to the previous participants question. Just wanted to understand on these semicondras in any sort of landscape was this or is this, you know, largely China, you know, replacement sort of opportunity? Because I understand you will be sold suppliers for your client. But how do we look at it from, you know, a more five year perspective, you know, over here who will we be competing even if it is in India.
Sanjay Shah
So see the, if you look at from a global perspective, there are players in Korea, there are players in, there are players in silicate who basically manufacture chip trays. Some of them might come and set up shop here. So then you’ll be basically competing against them. I don’t think on a long term basis any of the chip manufacturers would look at importing this trays on a day to day basis because this is something which is required by them every day to run their plant.
Unidentified Participant
Okay. I mean assuming you know, these players do come into India and set up shop going down the line, do you think that will be sort of, you know, pressure on the profitability we will probably enjoy in the first few years?
Sanjay Shah
I’m. It’s a little too early to talk about it in terms of that question. Again a lot of it will also depend on the quality and if you have to tie up with them earlier then you have a much more longer relationship then the customer would not be willing to make that change also. So there could be multiple factors
Unidentified Participant
And roughly would we know how competitive say a Chinese player would be versus us?
Sanjay Shah
Again it’s something which is currently difficult to answer.
Unidentified Participant
Okay. And so one small question I think we did speak about, you know, what sort of pen supplies we’ll be doing this year. I think initially I heard 40 to 42 million but then we also mentioned 36 million. So just wanted to understand the right number for FY27 that we would be targeting.
Sanjay Shah
I think 36 million, right Amit?
Amit Sanghvi
Yeah, yeah, yeah, that’s correct.
Unidentified Participant
Okay, I understand. Okay, thank you. Those are my questions.
Sanjay Shah
Thanks.
Operator
Thank you. The next question comes from the line of Loveline with systematics. Please go ahead.
Vishal Manchanda
Hi, thanks for the opportunity. Am I audible? So I wanted to know that on the recently announced Rupees 4, 423 kilo order of pen injector, someone large, domestic, common company, do you clarify whether this order is entirely incremental or it includes extension of any existing business orders. And also can you share any broad details regarding the customer profile?
Sanjay Shah
We are, we are bound by MDA so we will not be able to share the name of the customer. Otherwise we would have put it in the.
Amit Sanghvi
And. And the other details are already in the release. So it’s a, it’s a supply over four years and injectors. Okay,
Vishal Manchanda
So it is incremental over the four years, right?
Sanjay Shah
It is. The supply is a spread over four years. I don’t understand what you mean by increment.
Vishal Manchanda
Okay. Increment.
Amit Sanghvi
Yeah, exactly. Sorry.
Vishal Manchanda
And my second question is that have we signed any agreements or entered into any commercial engagements with the innovative companies in the JNP1 segment?
Amit Sanghvi
No, not yet.
Vishal Manchanda
Okay, thank you. That’s it for me.
Operator
Thank you. The next question comes from the line of Riyanshu Jain with Growx Infinity. Please go ahead. Okay, Anshu Dan, your line has been unmuted. Please go ahead with your question. As there is no response, we’ll move on to the next question. It’s from the line of Srinik Mehta with Indo Al S Wealth. Please go ahead. Srinik, your line has been muted. Please go ahead with a question.
Unidentified Participant
Yeah,
Operator
Shrink, can you hear us? My, my question is about the healthcare revenue that grew almost 139% in FY26. But the consumer declined almost 9% and now sits at almost 52% of the revenue versus 71% a year ago. Now you have this 423 crore pen injector order that is spread over four years. Can you help us understand the quarterly healthcare revenue run rate that you expect in FY27? Specifically what proportion of this 393 crores of FY26 healthcare revenue was one time ramp up versus the recurring supply?
And at what point does the consumer need to recover for you to sustain almost something say like a 25% consolidated top line growth?
Sanjay Shah
I think we would. And we do not give out quarterly numbers the way you are looking at it.
Operator
Only for the pen jetter order. You know, just kind of a run rate is what I was thinking.
Sanjay Shah
So that’s what I’m saying. We do not give out that. And quarter on quarter would be very very difficult for us to do that. So we don’t give that out. Second question is what sort of revenue comes from one time and what is regular supply? It’s a combination. Again we don’t give the breakup of those numbers. But this year you will see a lot of ramp up happening on GLP1s with the launches which have happened in India, Canada, in expected launches in other countries, a lot of it will be basically be regular supplies which will happen.
So you will see a ramp up on account of that.
Operator
Okay. And any lights on when you expect or when you feel that the consumer need to recover the consumer division.
Sanjay Shah
See, the consumer business has seen a degrowth in the second half of the year when if you look at first half, the consumer business grew. That’s because of what’s happening globally with the US and Europe, two large economies seeing a dip in demand in quarter four. We also saw some cancellation of orders or something from Middle east because of the war happening there. I think as and when the global situation improves, you would see that demand coming back. At the same time, as we have mentioned in the presentation also and earlier, we continue to add more products on the consumer space and we will continue to do that.
The growth will depend on how the global situation pans out.
Amit Sanghvi
All right, all the best, you guys.
Sanjay Shah
Thank you very much.
Amit Sanghvi
Thank you.
Operator
Thank you. Ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for closing comments.
Amit Sanghvi
Thank you very much. FY26 was marked by execution and continued improvement in operational performance. Our focus remains on scaling our new capacities. Disciplined finance management. We remain confident of delivering profitable, sustainable growth years ahead. Again, thank you everyone for joining the call. We hope that we’ve been able to answer all your questions adequately. For any further information, I request you to get in touch with sga, our investor relations advisors. Thank you and have a nice evening.
Operator
Thank you. On behalf of Shelley Engineering Plastics Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.