Standard Engg climbs as board nod to acquire majority stake in GScale Energy

Standard Engineering Technology (SETL) jumped 5.11% to Rs 235.65 after the company?s board approved the acquisition of up to 51% stake in GScale Energy, marking its strategic entry into the AI datacenter engineering.

Hyderabad-based GScale Energy engaged in the business of providing integrated engineering platform in the data centre engineering and infrastructure solutions sector.

SETL proposed to acquire upto 51% shareholding in GScale Energy through a combination of primary capital infusion and a strategic share-swap arrangement with existing shareholders, committing approximately Rs 190 crore for this phase I investment. As part of a broader phased program, SETL has approved a total investment of approximately Rs 500 crore to be deployed across equity acquisition, capacity expansion and working capital for the combined business, entirely self-funded from the company's cash flows.

The acquisition is expected to expand SETL?s engineering capabilities into rapidly growing AI datacenter sector The company has over a decade of experience in delivering concept-to-commissioning engineering solutions for the pharmaceutical, chemical and biotechnology industries.

By combining GScale's specialized datacentre domain expertise with SETL's engineering depth to deliver complete, end-to-end AI Datacenter solutions, from power and cooling infrastructure to precision fabrication, automation, and commissioning.

Through newly established AI infrastructure engineering platform, GScale Energy the company?s manufacturing operations are expected to commence from November 2026, FY2027 will effectively capture only approximately four months of contribution from this business. During this initial period, management is targeting revenue of about Rs 250 crore from the AI data centre vertical, subject to project execution timelines and customer schedules.

For FY2027, SETL expects its existing engineering operations to register revenue growth of around 40-50%, supported by its current order pipeline, customer engagements and ongoing growth initiatives, subject to market conditions and execution outcomes.

Nageswara Rao Kandula, managing director, Standard Engineering Technology, 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. With GScale's domain expertise and Mr. Kasu Brahma Reddy's leadership, we are building a platform to deliver complete, concept-to-commissioning AI Datacenter solutions at scale.?

Kasu Brahma Reddy, founder & director of GScale Energy, 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.?

Standard Engineering Technology (SETL) is a precision and multidisciplinary engineering company, providing end-to-end, concept-to-commissioning solutions for the Pharmaceutical, Chemical, Biotechnology, Food Processing, and AI Datacenter industries.

The company?s consolidated net profit jumped 31.06% to Rs 19.79 crore in Q4 FY26 from Rs 15.10 crore in Q4 FY25. Revenue from operations climbed 36.29% YoY to Rs 226.67 crore in Q4 FY26.

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