Summary
EPACK Prefab Technologies Limited - Q3 FY26 Earnings Call Summary Thursday, January 22, 2026 3:15 PM IST
Event Participants
Executives 3 Nikhil Bothra (Executive Director), Rahul Agarwal (CFO), Sanjay Singhania (Managing Director & CEO)
Analysts 11 Aasim Bharde (DAM Capital), Akash Srivastav (Intech), Anuj (PhillipCapital), Bhavya (Kris PMS), Deepak Poddar (Sapphire Capital), Devang Patel (Sameeksha Capital), Dheeresh (WhiteOak AMC), Madhu (MD Capital), Madhvendra (Individual Investor), Nitin Jain (Fair Value Equity), Priyanshu Jain (GrowthX Infinity), Raman KV (Sequent Investments), Rishi Kothari (Pi Square), Shubhankar Gupta (Equitree Capital), Subhanu (3 Head Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹315-320 crores* | +22% YoY; +41% for 9M FY26. QoQ dip due to monsoon and ₹35-40cr unbilled inventory. |
| EBITDA Margin | 10.1% | -70 bps YoY; 9M FY26 at 10.8%. Guidance maintained at 10.5%-11.5%. |
| Order Book | ₹1,215 crores | As of Jan 1, 2026; Provides 7-8 months revenue runway. |
| Capacity Utilization | 74% | Average across 3 plants for last 3 months; 9M average at 69%. |
| Net Debt | ₹125-127 crores | Reduced from ₹220 crores in Sep-25; ₹70 crores of IPO proceeds used to repay term loans. |
| Finance Cost | 2.2% of Revenue | Target 1.9% by end of FY26; interest income from unutilized IPO funds offsetting costs. |
| Working Capital Days | 38 days | Increased from 23 days in Q2; Management guides to a steady-state 35-day cycle. |
| Steel Fabrication Capacity | 1,33,000 tons | Total across 3 locations; adding 33,000 tons in Q4 FY26. |
| Sandwich Panel Capacity | 13.1 lakh sqm | Adding 8 lakh sqm capacity at Ghiloth plant. |
*Derived from 9M growth and guidance commentary.
Geographic & Segment Commentary
- Renewable Energy: Currently the largest demand driver, contributing 25%-28% of the order book. Focus is on high-speed execution for module, cell, and glass plants, often securing 2-3% price premiums for speed and repeat business (14-15 buildings for single clients).
- Southern India: Contributed 50% of H1 revenue, but Q3 was impacted by prolonged monsoons in this region, delaying civil works and subsequent prefab erection.
- Industrial & Warehousing: Electronics and semiconductors (CG Power projects) contribute 18% of orders; consistent demand continues from FMCG, Auto, Pharma, and Logistics.
Company-Specific & Strategic Commentary
- Capacity Expansion: Unit-4 in Mumbattu (Andhra Pradesh) will commercialize in Q4 FY26 (₹57cr CAPEX). The Ghiloth (Rajasthan) sandwich panel expansion is slated for Q3 FY27 due to NGT-related civil work delays.
- Vertical Integration: 60% of sandwich panel production is consumed in-house for clean rooms and cold storages, with 40% sold to external contractors to capture higher project value.
- Gujarat Greenfield: Investing ₹55-60cr for a 50,000-ton capacity plant on 39 acres in Vithlapur to service the western market; land acquisition (₹40cr) completed.
- Fast-Track Positioning: Strategic focus on being the “first recall” brand for speed; 40-45% of business is now derived from repeat customers who value execution speed over lowest-cost bidding.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (FY26) | ₹1,500 - ₹1,550 crores | Confidence backed by ₹1,215cr order book and ₹40cr unbilled FG carryover. |
| EBITDA Margin | 10.5% - 11.5% | Range-bound guidance maintained for FY26 and FY27 despite steel volatility. |
| Revenue (FY27) | ~₹1,800 crores | Minimum 20% YoY growth projected based on technology adoption and capacity additions. |
| Return Ratios | 17-18% ROE / 22-25% ROCE | Steady-state targets once current CAPEX cycles mature and utilize new capacities. |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Volatility | Steel prices rose 4-5% recently. Mitigated by fixed-price contracts being short-duration (4-5 months) and natural hedging via weekly order booking at current spot rates. |
| Regulatory (NGT) | Construction bans in Delhi NCR delayed civil works for the Ghiloth expansion. Currently pushing the commercialization of the sandwich panel line to Q3 FY27. |
| Execution Delays | External civil work delays (client-side) and monsoon-related site site-stoppages directly impact revenue recognition despite material readiness. |
Q&A Highlights
Revenue & Seasonality
- Question: Why did revenue decline QoQ if Q2 was the peak monsoon period? (Nitin Jain)
- Answer: Q2 performance was due to civil work completed in Q1. Q3 suffered because prolonged rains in the South prevented new civil foundations from being ready. Q4 is historically the strongest as site clearances are highest. (Sanjay Singhania)
Margins & Steel Prices
- Question: How do you protect margins with fixed-price contracts when steel prices rise? (Akash Srivastav)
- Answer: We hold 30-45 days of physical inventory and have 8-10 week forward orders with mills. Since we book new orders weekly at current spot prices, we achieve natural hedging across 500+ annual projects. (Sanjay Singhania/Nikhil Bothra)
Working Capital & Debt
- Question: Why has working capital jumped to 38 days from 23 days? (Devang Patel)
- Answer: 23 days was an anomaly due to rapid collections; 35-38 days is the realistic steady-state. Much of the Q3 stretch is due to unbilled finished goods inventory of ₹35-40cr. (Rahul Agarwal)
Capacity & Realization
- Question: What is the realization per ton for the PEB business? (Shubhankar Gupta)
- Answer: Structural steel realization is ₹1.20 to ₹1.25 lakh per ton. However, blended realization can exceed ₹2 lakh per ton when high volumes of sandwich panels are included in the project mix. (Sanjay Singhania)
Key Takeaway
EPACK Prefab delivered a resilient Q3 FY26 with 22% YoY revenue growth, despite seasonal monsoon headwinds in Southern India and NGT-related construction bans in NCR. The company maintains a robust order book of ₹1,215 crores, increasingly anchored by the high-growth renewable energy sector (28% of orders), where its reputation for rapid execution allows for modest price premiums. Strategically, EPACK is transitioning toward a pan-India footprint with imminent capacity additions in Andhra Pradesh and a planned greenfield expansion in Gujarat. For the nine-month period, revenue grew 41% and EBITDA 57%, keeping the management confident in achieving its FY26 revenue guidance of ₹1,500-1,550 crores and a sustainable 10.5%-11.5% margin profile. Looking ahead, the focus remains on capturing 20% of the expanding prefab market while maintaining a healthy 35-day working capital cycle and targeting 22-25% ROCE post-CAPEX.
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