Can EPack Prefab Technologies sustain its 40% net profit CAGR and continue its growth momentum?

Synopsis:
The company reported strong growth with a 39.92% net profit CAGR, expanding capacity, and a ₹920 crore order book. Backed by marquee clients, solid margins, and strategic expansion plans, it remains well-positioned to sustain momentum across industrial and prefabricated construction segments.

India’s Industrial Products sector is showing strong momentum in 2025, with the Index of Industrial Production (IIP) growing 4.0% year-on-year in August, led by manufacturing and mining. Manufacturing alone contributes over 77% to industrial output, with key segments like basic metals and electrical equipment posting double-digit growth. This sector is vital for India’s economic growth and job creation.

With a market capitalization of Rs 2,538.92 crore, the shares of EPack Prefab Technologies Ltd closed at Rs 252.75 per share, decreased around 6.92 percent as compared to the previous closing price of Rs 271.55 apiece.

CAGR Growth

The company’s consolidated net profit has grown significantly from  Rs 11 crores in FY20 to  Rs 59 crores in FY25, reflecting a remarkable turnaround. Over the past five years, it has achieved an impressive net profit CAGR of 39.92 percent, highlighting strong financial performance and effective growth strategies driving consistent profitability across its business operations.

The company delivered a strong financial performance in Q2FY26, with revenue surging 62% year-on-year to Rs 434 crore from Rs 268 crore. Net profit more than doubled, rising 107% to Rs 29 crore from Rs 14 crore, driven by robust demand, operational efficiency, and higher project execution, reflecting sustained business momentum and improved profitability.

Operational Highlights & Guidance

EPack Prefab maintained its EBITDA margin guidance at 10.5–11.5%, supported by its strategy to double market share to around 10% through expansion into larger, higher-margin projects. H1 margin gains were aided by operating leverage and lower employee costs, with management focusing on growth and market penetration over immediate profitability expansion.

For H2FY26, revenue is expected to exceed H1 levels, backed by seasonal demand, capacity additions, and debottlenecking efforts. Q4FY26 will benefit from 28,000–32,000 tons of new structural steel capacity, taking the total to 170kt. With a ₹920 crore order book providing 7–8 months visibility and utilization at 74–78%, the company is also exploring export markets in the Middle East and Africa.

The company operates three strategically located manufacturing facilities and three design labs across India, ensuring strong regional coverage and quick customer delivery. With a total PEB capacity of 1,33,922 MTPA and 13,10,000 sqm sandwich panel capacity, it’s investing ₹1,600 million in Ghiloth and Mambattu expansions to boost efficiency, export readiness, and product innovation.

The company has built strong trust among marquee clients across diverse sectors, serving major names like Reliance Industries, Aditya Birla Group, Hero, Godrej, Pepsico, Haier, and GMR. Its wide customer base across renewable, FMCG, automotive, and infrastructure industries reflects credibility, execution strength, and consistent delivery of high-quality prefabricated and construction solutions nationwide.

Recently, EPack Prefab Technologies Ltd made its stock market debut on the BSE at ₹183.85 per share, about 9.88% lower than its issue price of ₹204. The ₹504 crore IPO had a price band of ₹194–₹204, with a minimum investment of ₹14,162 for 73 shares, and bidding took place between September 24–26, 2025.

Epack Prefab Technologies operates in the pre-fab business, which provides turnkey solutions for pre-engineered steel buildings and other prefabricated structures. This includes the entire process from design, manufacturing, transportation, and installation to on-site assembly. Additionally, it is involved in the EPS packaging business, where the company produces expanded polystyrene (EPS) sheets, blocks, and molded products. These materials are used

Written by Abhishek Singh

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