Management

• Bajrang Bothra (Chairman and Non-Executive Director)
• Sanjay Singhania (Managing Director and Chief Executive Officer)
• Ajay DD Singhania (Non-Executive Director)
• Nikhil Bothra (Whole Time Director)
• Manorama Nagarajan (Independent Director)
• Dharam Chand Jain (Independent Director)
• Ram Grovher (Independent Director)
• Bipin Garg (Independent Director)
• Manuj Agarwal (Independent Director)
• Krishnan Ganesan (Non-Executive Nominee Director)
• Rahul Agarwal (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 504 cr which comprises fresh issue (Rs.300cr) and offer for sale (Rs.204cr). Company intends to use Net Proceeds from the issue towards financing the capital expenditure requirements for setting up new manufacturing facility at Ghiloth Industrial Area, Shahjahanpur, Alwar in Rajasthan for manufacturing of continuous Sandwich Insulated Panels and pre- engineered steel building (Rs.102.97cr), financing the capital expenditure towards expansion of existing manufacturing facility at Mambattu (Unit 4) in Andhra Pradesh for increasing the pre- engineered steel building capacity (Rs.58.17cr), repayment and/or pre-payment, in full or part, of certain borrowings availed by the company (Rs.70cr) and general corporate purposes.

Competitive Strengths

Strong Market Position and Comprehensive Offerings The company holds the third largest production capacity in the Indian pre-engineered steel buildings (PEB) industry, underscoring its scale and execution strength. Pre-Fab Business delivered a robust CAGR of 55.48% between FY22–24, outpacing overall industry growth. Top seven players, including the company, have grown faster than the broader industry, driven by strong reliability, use of high-quality raw materials, proven execution track record, and ability to deliver innovative solutions. With a diversified market presence and an extensive portfolio, the Company is well-positioned to cater to industrial, infrastructure, and commercial segments. Its expertise in offering cost-effective, high-quality PEB solutions has strengthened its reputation as a trusted partner, enabling it to benefit from the sector’s sustained growth momentum.

Strategically Located Facilities with Strong Design and Execution Capabilities Company benefits from strategically located manufacturing facilities across Greater Noida, Ghiloth, and Mambattu for its Pre-Fab Business, and an EPS Packaging facility at Greater Noida, ensuring proximity to key markets and efficient delivery. With an aggregate installed capacity of 133,922 MTPA in PEB and 8,400 MTPA in EPS as of FY25, it ranks as the third largest player in the PEB industry. Its diversified facilities, supported by three in-house design and detailing centres and advanced software tools, enable customized, cost-efficient solutions. A dedicated project execution team of 252 professionals further strengthens delivery capabilities. The Company’s footprint spans 30 Indian states and union territories, with projects also executed in Nepal and Bhutan, while its Mambattu facility offers export potential. This integrated infrastructure and wide presence enhance flexibility, reduce costs, and reinforce strong customer relationships.

Long-Standing Customer Relationships Driving Growth The company has established enduring relationships with a diverse customer base, built on quality, cost efficiency, and timely execution. Between FY23–25, it successfully catered to over 2,020 customers in the Pre-Fab Business and completed 4,410 projects across industrial, commercial, infrastructure, and residential sectors. Marquee clients include Havells India, JK Tyre, Haier Appliances, Asahi India Glass, and Avaada Electro, among others, while its EPS Packaging Business also serves leading consumer durables companies. Recognition such as the “Emerging Star Performer Award” from Tata Steel highlights its credibility and strong execution track record. The Company nurtures customer confidence by beginning with smaller projects and scaling as trust deepens, supported by compliance with stringent audits and approval processes. These long-term partnerships reinforce market presence, ensure repeat business, and provide a strong foundation for sustainable growth.

Strong Financial Growth The Company has delivered consistent financial growth, supported by operational efficiency, capacity utilization, customer outreach, and expansion across India. It is the fastest-growing among peers, with revenue from operations posting a CAGR of 41.79% between FY22–24, led by the Pre-Fab Business at 55.48%. EBITDA grew at a CAGR of 56.45% during the same period, while returns remained strong with RoE of 29.12% and RoCE of 27.21% in FY24. With the third largest production capacity in the PEB industry, the company has scaled rapidly alongside favorable industry growth. Its strong balance sheet supports strategic initiatives, access to performance guarantees, and resilience against cash flow fluctuations. Backed by a growing order book and diversification opportunities, the Company is well positioned to capture future demand in the expanding PEB and EPS packaging markets.

Peer Comparison

Key Risks & Concerns

Potential Conflict of Interest with Group Companies The company faces potential conflicts of interest due to promoter and director involvement in group entities like Epack Durable Limited and East India Technologies Private Limited. Although a Non-Compete Agreement, amended in January 2025, grants the company exclusive rights in EPS Shape and Block Molding businesses within defined territories for 30 years, overlaps in business interests could still create operational challenges. Such related-party dynamics may influence strategic decisions and pose risks to independent growth.

Dependence on Key Customers and Single Supplier in EPS Business The Company’s EPS Packaging Business is highly dependent on its top ten customers, including group entities, which contributed 70.97%–80.13% of segment revenue during FY23–25. Loss of any major customer could significantly impact revenue, profitability, and cash flows. Additionally, the business relies on a single raw material supplier, creating vulnerability to supply disruptions or delays. While no such issues arose in recent fiscals, this concentration risk remains a potential challenge for sustained growth.

Risk of Sustained Negative Cash Flows from Investments The company has reported negative cash flows from investing activities in FY23–25, primarily due to continuous capital expenditure on expanding PEB capacity at Ghiloth and Mambattu. While operating cash flows remained positive, prolonged or significant negative investment cash flows could strain liquidity, limit financial flexibility, and impact the ability to fund growth initiatives. Such trends may adversely affect future operations, profitability, and overall financial performance if not balanced with sustainable returns.

Geographical Concentration Risk The Company’s business operations are largely concentrated in North, Central, and West India, with major facilities at Greater Noida and Ghiloth. In FY25, these regions together contributed over 64% of Pre-Fab Business revenue. Such concentration exposes the Company to risks from regional economic fluctuations, regulatory changes, political instability, natural disasters, or infrastructure disruptions. Limited geographic diversification increases vulnerability, as adverse developments in these regions could disproportionately affect revenue, supply chains, profitability, and long-term financial stability.

Outlook and Valuation

The company is strategically positioned to benefit from the strong growth prospects of India’s pre-engineered steel buildings (PEB) and sandwich insulated panel markets, both expected to grow at 9–11% CAGR through FY30, driven by urbanization, industrial expansion, logistics demand, and adoption of modern construction techniques. Planned capacity expansions at Ghiloth (Rajasthan) of 800,000 SQM for manufacturing Sandwich Insulated Panel and Mambattu (Andhra Pradesh) of 24,000 MTPA for pre-engineered capacity are critical growth levers, enhancing the company’s ability to serve high-demand regions in North, West, and South India while also tapping export opportunities given Mambattu’s proximity to ports. This increased scale, coupled with entry into high-potential end-use industries like cold storage, cleanrooms, and healthcare, strengthens long-term demand visibility.

Geographical diversification remains a key priority as the company scales operations beyond its current concentration in North, Central, and West India. With sales footprints expanding from 8 in FY23 to 10 in FY25 and sales representatives rising to 43, the company has already demonstrated consistent growth in market reach. It now plans to deepen penetration domestically and expand internationally across markets like Nepal, Oman, Bangladesh, and Southeast Asia, targeting the $32–35 billion global prefabricated buildings market by CY2029. The company’s customer-centric approach, supported by business development initiatives and a dedicated sales and marketing team, is expected to drive new customer acquisition while improving wallet share from existing clients through complementary product offerings and tailored solutions.

Technology investments and a strong emphasis on eco-friendly construction will further enhance competitiveness. With a dedicated in-house design and detailing team, the company is leveraging advanced software like Tekla and AutoCAD, supported by automation scripts to reduce errors, shorten design cycles, and improve project execution. This technological edge, combined with PAC and GRIHA certifications for its green building products, positions the company well to capture growing demand for sustainable construction solutions. However, risks remain from customer concentration in EPS packaging, reliance on a single raw material supplier, and negative cash flows from continuous capital expenditure. Overall, the company’s integrated approach of capacity expansion, geographic diversification, customer engagement, and technology-driven efficiency, supports a strong growth trajectory, underpinned by favorable industry trends and rising adoption of pre-engineered, eco-friendly construction methods. Epack Prefab Technologies is valued at 35x based on FY25 EPS, calculated based on the upper price band. We recommend a SUBSCRIBE rating for long-term investors.