Shaily Engineering Plastics shares surged over 5% in early trade on Thursday after the company announced securing a significant manufacturing and commercial supply agreement worth approximately ₹423 crore from a large domestic pharmaceutical company for the supply of pen injectors. According to latest reports from Mint, the stock rallied as much as 5.7% to ₹2,049.75 on the BSE, demonstrating strong market response to the major order win. The order has been awarded by a domestic entity and involves the manufacturing and commercial supply of pen injectors over a period of four years, with the customer's name not disclosed due to confidentiality reasons.
The company's December quarter performance showed significantly improved results with consolidated revenue reaching ₹250.5 crore, registering a growth of 27% from ₹197.6 crore in the year-ago quarter, as reported by Mint. Net profit in Q3FY26 increased 48% to ₹37.4 crore from ₹25.2 crore year-on-year, while EBITDA during the December quarter rose 43% to ₹66.4 crore from ₹46.3 crore. The EBITDA margin improved by 310 basis points to 26.5% from 23.4% year-on-year, indicating enhanced operational efficiency and profitability during the quarter.
The company clarified in the filing that neither the promoter nor the promoter group has any interest in the awarding entity, ensuring transparency in the contract award process. As reported by CNBC TV18, the contract does not fall under related party transactions, maintaining proper governance standards. The agreement represents a substantial order win for the company's healthcare division, positioning it for sustained revenue generation over the four-year contract period. Shaily Engineering Plastics is India's largest exporter of plastics components with seven facilities featuring over 200 molding machines ranging from 35 tons to 1,000 tons.
Recently, the company announced the appointment of Joe Kam as Chief Operating Officer (Healthcare), effective March 1, 2026. According to CNBC TV18, Kam brings over two decades of international experience in manufacturing and operations across highly regulated and process-driven industries. The company also announced plans to set up a medical devices manufacturing facility in Abu Dhabi with an investment of AED 130–150 million. As reported by CNBC TV18, the proposed facility will have an annual capacity of around 75 million pen injectors and is expected to become operational by the fourth quarter of FY28.
Despite the recent rally, Shaily Engineering Plastics shares have fallen 24% in three months and dropped 7% in six months, according to Mint. However, the stock has delivered impressive long-term returns with multibagger gains of 283% in one year and 980% over the past five years. At 10:25 AM on Thursday, the stock was trading 3.37% higher at ₹2,004.75 on the BSE. Technical analysts note that the stock has corrected sharply by nearly 36% in just 11 weeks, forming a bearish flag pattern on the weekly chart. According to Lakshmishree Investments, a breakdown from current consolidation could trigger a move toward the ₹1,534 zone, while risk-reward remains skewed to the downside until key resistance levels are reclaimed.
