Groups
EPACKPEB
EPACK Prefab Technologies Limited Q3 FY26 Earnings Conference Call Summary 📊
EPACK Prefab Technologies Limited delivered a robust performance in Q3 FY26, showcasing significant year-on-year (YoY) growth.
𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:
– YoY Revenue Growth:
▸ Prefab Division: 31%
▸ Overall Company: 22%
– Nine Months Performance (YoY):
▸ Revenue Growth: 41%
▸ EBITDA Growth: 57%
– Margins:
▸ Q3 FY26: 10.1% (slight dip QoQ)
▸ Nine Months FY26: 10.8%
▸ Guidance maintained at 10.5% – 11.5% for current & next year.
𝗢𝗿𝗱𝗲𝗿 𝗕𝗼𝗼𝗸 & 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻:
– Order Book (as of Jan 1, '26): ₹1,215 Cr 💰
– Provides a runway of 7-8 months.
– Capacity Utilization (last 3 months avg): 74%+
– Q4 is expected to be the best quarter for execution due to favorable site conditions.
𝗖𝗮𝗽𝗮𝗰𝗶𝘁𝘆 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 & 𝗖𝗮𝗽𝗲𝘅:
– 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗮𝗹 𝗦𝘁𝗲𝗲𝗹 𝗙𝗮𝗯𝗿𝗶𝗰𝗮𝘁𝗶𝗼𝗻 (𝗠𝘂𝗺𝗯𝗮𝘁𝘁𝘂, 𝗔𝗣):
▸ Capacity addition of 33,000 tons (part of ₹56-57 Cr Capex).
▸ Commercialization expected in Q4 FY26.
– 𝗦𝗮𝗻𝗱𝘄𝗶𝗰𝗵 𝗣𝗮𝗻𝗲𝗹𝘀 (𝗚𝗵𝗶𝗹𝗼𝘁𝗵, 𝗥𝗮𝗷𝗮𝘀𝘁𝗵𝗮𝗻):
▸ Capacity addition of 8 lakh sq meters (part of ₹101 Cr Greenfield Capex).
▸ Commercialization expected in Q3 FY27 (slight delay due to NGT ban).
– 𝗚𝘂𝗷𝗮𝗿𝗮𝘁 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻: Additional Capex of ₹55-60 Cr for a 50,000-ton capacity plant planned for FY27.
𝗞𝗲𝘆 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗗𝗿𝗶𝘃𝗲𝗿𝘀 & 𝗦𝗲𝗰𝘁𝗼𝗿𝘀:
– 𝗥𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲 𝗦𝗲𝗰𝘁𝗼𝗿: Growing importance, contributing 25-28% of the order book. EPACK is becoming a preferred vendor due to speed & quality.
– 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰𝘀, 𝗦𝗲𝗺𝗶𝗰𝗼𝗻𝗱𝘂𝗰𝘁𝗼𝗿 & 𝗘𝗹𝗲𝗰𝘁𝗿𝗶𝗰𝗮𝗹: ~18% of the order book.
– 𝗢𝘁𝗵𝗲𝗿 𝗦𝗲𝗰𝘁𝗼𝗿𝘀: FMCG, Auto, Pharma, Logistics & Warehousing continue to contribute.
– 𝗥𝗲𝗽𝗲𝗮𝘁 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀: Account for ~40-45% of the business.
𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀:
– 𝗦𝗲𝗮𝘀𝗼𝗻𝗮𝗹𝗶𝘁𝘆: Business is affected by monsoons; YoY comparison is recommended over QoQ.
– 𝗖𝗼𝗺𝗺𝗼𝗱𝗶𝘁𝘆 𝗣𝗿𝗶𝗰𝗲𝘀: Natural hedging through weekly order booking & inventory management protects OPM. No significant impact foreseen.
– 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀: Increased YoY due to rapid company growth & hiring ahead of future ambitions. Guidance of ~9% of revenue maintained.
– 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗖𝗼𝘀𝘁: Reduction in term loans is expected to lower finance cost as a percentage of revenue to ~1.9% by year-end.
– 𝗪𝗼𝗿𝗸𝗶𝗻𝗴 𝗖𝗮𝗽𝗶𝘁𝗮𝗹: Cycle expected to normalize around 35 days.
𝗡𝗼𝘁𝗮𝗯𝗹𝗲 𝗤&𝗔 𝗣𝗼𝗶𝗻𝘁𝘀:
– Company is capable of handling projects in extreme climatic conditions (e.g., Siachen project).
– Focus on embedding prefab technology into overall construction, targeting 25-30% adoption.
– Margins in the renewable sector are slightly better, with a focus on repeat business.
– Realization per ton for structural steel is around ₹1,20,000 – ₹1,25,000.
– Target overall capacity utilization of 80%.
– Debt repayment of ₹70 Cr using IPO proceeds completed.
– Return Ratios: Aiming for ~17-18% ROE & 22-25% ROCE in the steady state.
– Revenue Guidance FY27: Minimum 20% growth over FY26, around ₹1,800 Cr.
