Fabtech Technologies Limited: Engineering Life Sciences for a Sustainable Future

Fabtech Technologies Limited, a prominent player in providing turnkey solutions for the life sciences and healthcare sectors, has reported a robust performance for the first half of FY26. The company, known for its comprehensive engineering excellence, delivered a total income of INR 193.23 crore, marking an impressive 109.9% year-on-year growth. Net profit more than doubled, reaching INR 21.98 crore, up by 101.6% compared to the previous year. The EBITDA also saw a significant improvement, standing at INR 28.40 crore with margins expanding to 14.7%.

Fabtech's integrated operating model, efficient cost structure, and disciplined project management have been instrumental in this strong financial showing. The company's asset-light approach, combined with extensive in-house manufacturing capabilities for critical process, air, and water systems, allows it to deliver GMP-compliant, energy-efficient, and contamination-controlled environments across 62 countries. This end-to-end control minimizes third-party dependency, ensuring speed, quality, and consistency in project execution. The company's focus on emerging markets, particularly the MENA, GCC, and ECO Zone regions, has been a key growth driver, fueled by these regions' accelerated push for pharmaceutical self-reliance post-COVID.

Strategic Alliances and Market Focus

A significant strategic move for Fabtech is its recently announced global alliance with KP Group. This Memorandum of Understanding (MoU) aims to develop and implement next-generation green infrastructure across the pharma, biotech, and healthcare sectors. Under this partnership, KP Group will integrate solar, wind, hybrid, Battery Energy Storage System (BESS), and green hydrogen-based power solutions into Fabtech's projects. This initiative is set to create sustainable, low-carbon digital ecosystems worldwide, broadening Fabtech's service offerings and enhancing its market positioning by providing eco-friendly solutions to its clients.

The company's leadership highlighted that this collaboration is not just a partnership but a convergence of energy and innovation, establishing a framework to explore opportunities in India, the Middle East, and Africa, with a focus on sustainability and digitalization. This aligns with Fabtech's commitment to building resilient, sustainable, and future-ready healthcare manufacturing ecosystems globally.

Fabtech's order book remains robust, standing at INR 904.42 crore as of July 31, 2025. This strong pipeline provides clear visibility for sustained revenue momentum in the coming quarters. The company secured several high-value turnkey projects across its key growth regions, further solidifying its position as a preferred partner for critical facility infrastructure. The management indicated an order conversion growth of approximately 9% per quarter and aims for a sustained year-on-year revenue growth of 20-25%.

Navigating a Lumpy Business Model

During the earnings conference call, management addressed investor queries regarding the fluctuation in quarterly EBITDA margins, which have varied significantly. They clarified that Fabtech operates in a project-based industry where business can be 'lumpy,' meaning quarter-to-quarter results often show considerable variation. Therefore, the company emphasizes yearly guidance over quarterly performance, focusing on sustaining and growing margins over the long term through structural efficiencies and disciplined project management.

Another point of discussion was the company's working capital days, which are currently in the range of 120-150 days. Management acknowledged that there is room for improvement in receivable cycles and collection procedures and is actively working on these aspects. Despite these operational characteristics, Fabtech's integrated design-to-delivery model helps reduce project cost overruns and safeguards long-term operational efficiency, ensuring regulatory confidence by meeting global standards like cGMP, WHO, EU-GMP, USFDA, and ISO.

Fabtech Technologies Limited continues to strengthen its leadership as a global turnkey engineering solution provider. The company's strategic focus on high-growth international markets, coupled with its commitment to sustainable solutions through partnerships like the one with KP Group, positions it well for continued growth. The management's emphasis on execution excellence, expanding global footprint, and driving sustainable profitability underscores a clear vision for the future, aiming to create long-term value for its stakeholders.