Standard Engineering shares are likely to remain in focus in Friday’s trade, June 26, after the company approved the acquisition of up to a 51% equity stake in GScale Energy Private Limited, an integrated engineering platform focused on AI data-centre engineering infrastructure products and solutions.
SETL plans to acquire the majority stake through a combination of primary capital infusion and a strategic share-swap arrangement with GScale Energy’s existing shareholders. The company has committed around ₹190 crore for the Phase I investment.
As part of a broader phased programme, SETL has approved a total investment of around ₹500 crore, which will be deployed towards equity acquisition, capacity expansion, and working capital for the combined business. The investment will be entirely self-funded through the company’s internal cash flows.
The proposed acquisition marks SETL’s entry into the AI data-centre infrastructure space, expanding its engineering capabilities beyond the pharmaceutical, chemical, and biotechnology sectors. The company said India’s AI and hyperscale data-centre infrastructure market is expected to require investments of around $20 billion-$25 billion through 2030, as per the company’s regulatory filing.
GScale Energy will continue to be led by its founder and existing leadership team. SETL will provide strategic guidance, capital support, and access to its manufacturing scale and integrated execution capabilities.
The combined business will aim to offer end-to-end AI data-centre engineering solutions, including power and cooling infrastructure, precision fabrication, automation, and commissioning.
SETL also said it is targeting revenue growth of around 40%-50% in its existing operations in FY27, supported by its order pipeline, customer engagements, and ongoing growth initiatives, subject to market conditions and execution outcomes.
Commenting on the acquisition, Nageswara Rao Kandula, Managing Director, Standard Engineering Technology Limited, said, “This investment is the natural evolution of everything SETL has built since 2013. The same precision and integrated execution capability that made us a trusted engineering partner to pharma and chemical companies will now power the datacenters driving the AI revolution.”
Kasu Brahma Reddy, Founder & Director of GScale Energy Private Limited, said, “Joining hands with SETL is a transformative step for GScale. With SETL’s manufacturing scale, financial strength, and engineering depth, we are well positioned to deliver world-class AI datacenter engineering solutions for India’s next generation of digital infrastructure.”
Shares rebound 104% from March lows and hit a fresh record high
The company’s shares staged a strong comeback in June, rallying 60.4% so far during the month and touching a fresh record high of ₹236 apiece along the way. After remaining under prolonged pressure, buying interest emerged in April, with the stock ending the month with a 33% gain.
From its March low of ₹104.56, the stock has surged a ₹214″>whopping 104% to trade at around ₹214. The sharp rebound has also helped the stock gain 42% so far in 2026, significantly outperforming the small-cap segment, which has witnessed sharp swings this year.
For the March-ending quarter, the company reported total income of ₹231 crore, registering a strong 34.97% year-on-year growth. EBITDA stood at ₹36 crore, up 26% YoY, while EBITDA margin came in at 15.4%, while profit after tax (PAT) increased 26.33% to ₹21 crore, with a PAT margin of 9%.
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