EPack Prefab Technologies LtdQ1 FY26
EPack Prefab Technologies Ltd Q1 FY26 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹240P/E: 21.8Market Cap: ₹2.0K CrSector: Industrial Manufacturing
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2- →EPACK Prefab Technologies Limited targets a 30% growth in sales/revenue for FY27, aiming for around INR 1,920 to 1,950 crores in revenue.
- →The company expects to maintain Prefab division growth momentum over the coming years, with further capacity additions planned (e.g., 36,800 metric tons incremental capacity in Ghiloth and Mambattu, 50,000 metric tons capacity in Gujarat).
- →Volume-wise, FY26 closed at about 1,08,000 metric tons, up from 75-76,000 metric tons the previous year, indicating strong volume growth.
- →The management is confident about meeting or exceeding the growth guidance, supported by a robust pipeline of about INR 5,000 crores and a win rate of 15%-20%.
- →Peak capacity utilization has reached about 83%-84%, with potential peak revenue at INR 2,300-2,400 crores.
- →New age sectors (data centers, EV, renewables) and expanding geographic presence (West India, Gujarat) are growth drivers.
Margin guidance
Category 3- →EPACK Prefab Technologies Limited is targeting a 30% growth in revenue for FY27, aiming for around INR1,920 to INR1,950 crores in the Prefab division.
- →Margins are expected to remain stable in the 10% to 11.5% range, despite some short-term pressure from steel price increases.
- →The company anticipates improved capacity utilization with new capacity additions at Ghiloth, Mambattu, and a greenfield project in Gujarat, boosting PEB capacity to approximately 2,20,000 metric tons by end FY27.
- →Incremental capacities (e.g., 50,000 tons in Gujarat) are expected to generate peak incremental revenues of INR500 to INR600 crores once fully ramped up.
- →Asset turns are high, with expected revenue of 5-6 times the capex; e.g., INR100 crores capex could yield INR500-600 crores in revenue.
- →Interest costs are expected to decline modestly (~20-25 basis points) as debt repayments continue.
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Fundraise plans
- →The company is not planning any new fundraising through debt or equity at the moment.
- →They have already raised money through their IPO, which is being utilized for expansions at Ghiloth and Mambattu plants.
- →The remaining capex, particularly for Gujarat capacity, will be funded mostly from existing cash/ internal accruals (around INR300 crores cash in bank).
- →The company has been actively repaying debt, having repaid about INR107-108 crores in the last year, leading to a reduction in finance costs.
- →Interest cost is expected to decrease further in FY27 due to lower debt levels, indicating no immediate need for additional borrowing.
Order book
Yes- →Current order book stands at around INR 1,100 crores (INR 1,127 crores mentioned).
- →Company is targeting an order book of INR 2,000 crores plus for the current financial year (FY27).
- →The pipeline, including both short-term (1-2 months closure) and long-term orders, is around INR 5,000 crores.
- →Typical win rate on the pipeline is around 15% to 20%.
- →Approximately 35% to 40% of the current order book comprises repeat orders from existing customers.
- →The entire current order book (INR 1,100 crores plus) is expected to be executed within FY27, with most projects completed within 6 to 9 months.
- →Order inflows in the current quarter have been strong with a robust pipeline supporting the growth guidance.
Capex plans
Yes- →EPACK Prefab Technologies Limited is undertaking a capex of INR160 crores, funded partly through IPO proceeds and internal accruals.
- →Capex plans include:
- → - Gujarat capacity expansion of 50,000 metric tons requiring INR100-110 crores capex, with INR38 crores already spent on land and INR60-65 crores to be spent for building capacity.
- → - Ghiloth and Mambattu expansions funded from IPO proceeds.
- →Additional PEB capacity lines:
- → - Mambattu capacity to increase to about 96,000 metric tons by FY27 (from 82,000 currently).
- → - Ghiloth and Mambattu additions expected to raise PEB capacity to about 170,000 metric tons.
- → - Gujarat plant expected to bring total PEB capacity to approximately 220,000 metric tons by end of FY27.
- →Sandwich panel capacity to increase to about 2.11 million square meters after adding 8 lakh square meters at Ghiloth by Q3 FY27.
- →Ramp-up in capacity expected to generate incremental revenues of INR500-600 crores from 50,000 metric tons Gujarat capacity at peak utilization.
How does EPack Prefab Technologies Ltd rank vs peers in Industrial Manufacturing?
Pro feature1EPack Prefab Technologies Ltd
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