EPACK Prefab Q2 revenue hits Rs 501.1 crore, margins fall

EPACK Prefab Technologies Limited reported record revenue from operations of Rs 501.1 crore in Q2 FY27, up 15.5% year on year, while EBITDA margin fell 143 basis points to 10.1% as steel-price volatility and higher expanded polystyrene costs affected profitability. EPACK Prefab’s pending order book rose 59% to Rs 1,462.5 crore at September 30, 2026.

How did EPACK Prefab perform in Q2 FY27?

EPACK Prefab recorded its highest quarterly revenue from operations at Rs 501.1 crore for the quarter ended September 30, 2026, compared with Rs 433.9 crore in Q2 FY26. Revenue was also 37% higher quarter on quarter, while total income increased 15.6% year on year to Rs 504.7 crore from Rs 436.7 crore.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 1.2% to Rs 50.6 crore in Q2 FY27 from Rs 50 crore a year earlier. Profit before tax declined 0.8% to Rs 38.7 crore, while profit after tax, or PAT, was Rs 29.6 crore against Rs 29.5 crore in Q2 FY26, showing that profit growth lagged revenue growth.

EPACK Prefab also expanded in the first half of FY27, with revenue from operations rising 18.9% to Rs 867 crore from Rs 729.3 crore in H1 FY26. H1 EBITDA rose 5.1% to Rs 85.1 crore and PAT increased 5.0% to Rs 47.8 crore, both growing more slowly than sales.

Why did EPACK Prefab’s margins decline?

EPACK Prefab’s Q2 FY27 EBITDA margin declined to 10.1% from 11.5% in Q2 FY26, while PAT margin fell to 5.9% from 6.8%. In H1 FY27, EBITDA margin was 9.8% versus 11.1% a year earlier, and PAT margin was 5.5% compared with 6.2%.

Management attributed the H1 gross-margin reduction to steel-price volatility and higher input costs in its expanded polystyrene, or EPS, packaging business. EPS input costs rose faster than EPACK Prefab could pass them through on orders already under execution, even as EPS Packaging revenue grew 19.1% year on year in H1 FY27.

Other expenses provided a partial offset, declining to 12.1% of H1 revenue from 13.1% in H1 FY26 as operating leverage improved. Management said it has revised pricing on new orders and implemented long-term sourcing arrangements, and expects gross margins to recover over coming quarters as those orders are executed.

Which business drove EPACK Prefab’s first-half growth?

EPACK Prefab’s Prefab Business was the larger reported contributor to H1 revenue, rising 18.8% year on year to Rs 774.5 crore in H1 FY27. This segment provides turnkey design, manufacturing, installation and erection services for pre-engineered steel buildings, prefabricated structures and components in India and overseas.

EPS Packaging grew slightly faster, with H1 FY27 revenue up 19.1% year on year, although EPACK Prefab did not disclose the segment’s revenue amount in the release. The business manufactures EPS block-moulded and shape-moulded products for construction, packaging and consumer-goods uses, and its higher input costs were specifically cited in the margin decline.

Built-up pre-engineered buildings, or PEB, capacity was fully utilised across units during the period, according to EPACK Prefab. The Ghiloth, Rajasthan sandwich-panel line began commercial production in November 2026, lifting total sandwich-panel capacity to 2.1 million square metres.

What do orders and working capital indicate for EPACK Prefab?

EPACK Prefab had a pending order book of Rs 1,462.5 crore at September 30, 2026, up 59% year on year. H1 FY27 order inflow rose 71% from H1 FY26 to Rs 1,124.3 crore, with major orders from Emmvee, HEC, SAEL and United Breweries Limited.

The order book represents work awaiting execution rather than revenue already recognised. Against the Rs 867 crore of H1 FY27 revenue, the Rs 1,462.5 crore pending order book provides a disclosed measure of scheduled work, while delivery and billing will determine the timing of revenue recognition.

Working capital increased during H1 FY27 as EPACK Prefab executed large renewable-energy and industrial projects with milestone-based billing. The company said a significant part of related receivables is backed by letters of credit and expects realisation in coming months; management has set a target of returning net working capital to around 40 days in H2 FY27.

EPACK Prefab remained net cash positive, reporting net cash of approximately Rs 25.4 crore at September 30, 2026 after funding capacity expansion and higher working capital. Its long-term credit rating remained ICRA A+ with a stable outlook and its short-term rating remained ICRA A1.

What is EPACK Prefab targeting for FY27?

EPACK Prefab has maintained management’s FY27 outlook of Rs 1,900 crore to Rs 1,950 crore of revenue, EBITDA margin of about 10.5%, PAT margin of 6.0% to 6.5%, capital expenditure of approximately Rs 150 crore and net working capital of around 40 days. These are management targets rather than reported outcomes, compared with H1 FY27 EBITDA margin of 9.8% and PAT margin of 5.5%.

The company said Gujarat Phase 1 is progressing on track for commencement in January or February 2027, following the November 2026 commercial start at Ghiloth. Of the Rs 300 crore initial public offering proceeds, EPACK Prefab had used Rs 208.5 crore at September 30, 2026, including Rs 70 crore to repay borrowings and spending on Ghiloth and Mambattu.

Conclusion

EPACK Prefab combined record Q2 FY27 revenue of Rs 501.1 crore with a 59% year-on-year increase in its pending order book to Rs 1,462.5 crore. However, EBITDA rose only 1.2% in the quarter and margin fell to 10.1% because steel volatility and EPS input-cost increases affected orders under execution.

The next disclosed items to watch are the effect of revised prices and long-term sourcing arrangements on margins, progress towards the around-40-day working-capital target in H2 FY27, and the expected January or February 2027 commencement of Gujarat Phase 1. Management has also maintained its FY27 revenue target of Rs 1,900 crore to Rs 1,950 crore and EBITDA-margin target of about 10.5%.