EPack Prefab shares tank 10%, back at IPO price after Q3 earnings miss

Shares of EPack Prefab Technologies Ltd. declined as much as 10% to hit a lower circuit of ₹205.30 on Thursday, January 22, after the company reported its December quarter results.

On a year-on-year basis, the company reported a strong improvement in profitability, largely aided by a sharp jump in other income. Profit after tax surged 45% year-on-year to ₹16.8 crore, backed by other income of ₹5.9 crore, compared with just ₹4 lakh in the year-ago quarter.

Revenue rose 22.1% to ₹325.3 crore from ₹266.4 crore, while EBITDA increased 21.7% to ₹32.7 crore. EBITDA margins remained flat at 10.1%.

However, on a sequential basis, performance weakened during the quarter. Revenue declined 25% quarter-on-quarter from ₹433.9 crore, while EBITDA fell 34.6% from ₹50 crore.

Margins contracted to 10.1% from 11.5%, and profit after tax dropped 43% from ₹29.5 crore. Other income increased sequentially to ₹5.9 crore from ₹2.8 crore.

Despite the near-term pressure, the company referred to the improvement in its order book and execution outlook. The order book stood at ₹1,216 crore, up 32% quarter-on-quarter, compared with ₹920 crore a year earlier.

Capacity expansion plans remain on track, with the company acquiring 39 acres of land in Gujarat, while the Mambattu brownfield facility is expected to shut by the end of FY26.

Speaking to CNBC-TV18, Sanjay Singhania of EPack Prefab Technologies said the second half of the year is expected to be stronger than the first. He said execution was impacted in Q3 due to prolonged monsoon conditions and site unavailability, but added that revenues are expected to rebound sharply in Q4.

The company expects its Q4 revenue in the range of ₹450-500 crore and reiterated its full-year FY26 revenue guidance of ₹1,500-1,550 crore.

A pending order book of ₹350-400 crore provides revenue visibility for the next 7-8 months.

Singhania added that design work for large projects that were delayed in Q3 has now been completed, with production underway, setting the stage for a much stronger Q4.

EPack Prefab Technologies operates across two business verticals. Its pre-fab business undertakes turnkey projects including design, manufacturing, installation and erection of pre-engineered steel buildings and prefabricated structures in India and overseas.

The company also has an EPS packaging business, which manufactures expanded polystyrene sheets and blocks used across construction, packaging and consumer goods.