Fabtech Technologies Cleanrooms Limited reported a challenging H1 FY26 with subdued standalone financials, as revenue and profit declined due to a strategic focus on reference creation and market penetration in new sectors. The company experienced margin compression and lost significant projects to competition. However, Fabtech demonstrated strong order inflow in the latter part of Q2, building a consolidated order book of 168 crores and a robust pipeline. With planned capacity expansions and a target of 30-40% revenue growth, management anticipates normalized margins and improved performance from FY27.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| FTCL Standalone Revenue | ₹50 Cr | -12.3% YoY |
| FTCL Standalone Profit | ₹2.9 Cr | -43.1% YoY |
| EBITDA Margin (H1 FY26) | 6.5% | — |
| Kelvin Revenue (H1 FY26) | ₹26 Cr | — |
| Kelvin PAT (H1 FY26) | ₹1.62 Cr | — |
| Altair Loss (H1 FY26) | ₹0.7 Cr | — |
Segment Breakdown
Share of Revenue
Total Value
₹ 168 crores
as of 2025-09-30
Inflow this qtr
₹ 110 crores
Execution
Pharma projects typically take 6-9 months, while non-pharma projects take 4-6 months.
Composition
Pipeline
deal pipeline tcvStrong active leads, with a significant portion being 'very hot'.
Cancellations / Deferrals
"The company is building a strong order book and pipeline, focusing on reference creation in new sectors, despite initial margin pressure."
| Category | Headline | |
|---|---|---|
Capex | ₹100 crores | |
Debt | Debt disclosed | |
M&A | Aart Integrated Projects Private Limited Other · integrated | |
M&A | Kelvin Air Conditioning & Ventilation Systems Private Limited Other · integrated | |
M&A | Altair Other · integrated |
| Category | Target | Priority |
|---|---|---|
| Revenue | Revenue Growth→30-40% | High |
| Revenue | Revenue Growth→40% | High |
| Revenue | Kelvin Full Year Revenue→80 crores | High |
| Order Book | Order Book Position→200-250 crores | High |
| Profitability | PAT Margin→7-8% | Medium |
| Capacity | Capacity Addition→100-120 crores | High |
| Market Share | Market Share in Cleanrooms→20% | Medium |
| # | Metric | |
|---|---|---|
| 01 | Kelvin PAT for stake increase | |
| 02 | New Hyderabad unit operationalization | |
| 03 | Order book position | |
| 04 | Normalized PAT margins | |
| 05 | Trade receivables reduction |
| Severity | Risk |
|---|---|
medium | Internal moonlighting problem A deep dive into project losses revealed a moonlighting problem, leading to employee terminations and tightened controls. Management |
medium | Loss of big-ticket projects to competition Lost 208 crores of business due to marginal price differences, indicating intense competition. Management |
low | Delayed pharma projects due to tariff war Some pharma projects were delayed due to ongoing tariff wars, impacting execution pace. Management |
low | Labour shortages Faced issues with severe labour shortages, though management claims to have cracked the issue. Management |
medium | Underperformance of subsidiary (Altair) Altair's 70 lakh loss impacted the consolidated balance sheet, and its performance is slower than expected. Management |
medium | Competition from Japanese and Chinese imports The company is competing with established Japanese and Chinese players, requiring strategic pricing and PLI qualification efforts. Management |
Fabtech Technologies Cleanrooms Limited designated H1 FY26 as an 'inflection year,' prioritizing growth and reference creation across new sectors such as solar, data centers, and semi-cons. This strategic shift involved making business decisions over short-term commercial gains, resulting in a temporary margin compression to 6.5% from the previous 10-10.5%. Despite this, the company successfully closed 110 crores worth of projects in the last 45 days of Q2, signaling growing client confidence in its capabilities.
The company's consolidated order book stands at 168 crores, evenly split with a 50-50 mix between pharma and non-pharma segments. Fabtech also boasts a strong pipeline of 800 crores in active leads, with 225 crores identified as 'very hot' and nearing final stages. Management projects an order book of 200-250 crores by March 2026, with execution timelines for projects ranging from 4-6 months for non-pharma and 6-9 months for pharma.
To support its ambitious growth targets, Fabtech is undertaking substantial capacity expansion, aiming to add 100-120 crores in capacity by Q1 FY27. This includes the procurement and installation of two new roll forming machines and an automatic panel assembly line. Additionally, the company is establishing a new manufacturing unit in Hyderabad, which will further enhance its production capabilities. Current capacity utilization is reported at approximately 60%.
Kelvin, a key subsidiary, contributed 26 crores in revenue and 1.62 crores in PAT during H1 FY26, and is on track to achieve an 80 crore full-year revenue for FY26. Fabtech's 28% investment in Aart has proven valuable for technical expertise in solar and semi-con cleanrooms. While Advantek (26% stake) and Altair (80% stake) are progressing slower than expected, with Altair incurring a 70 lakh loss, management plans to increase its stake in Kelvin from 51% to 76% once Kelvin achieves a PAT of 7 crores.
Fabtech is aggressively expanding into non-pharma sectors, securing significant projects in solar (e.g., Sangam Solar, Gopin Solar), data centers (Nextra, NSE), and electronics. The company is developing import-substitute T-grids, securing a 20 crore order for a solar company, and is actively pursuing PLI qualification with government ministries to enhance its competitive position against Japanese and Chinese imports. This strategy aims to leverage local manufacturing and execution capabilities.
The company maintains banking limits of ₹22 crore, with minimal utilization, and has secured an additional ₹15 crore sanction, bringing total limits to ₹30-35 crore. While consolidated trade receivables increased from 53 crores in March 2025 to 65 crores in September 2025, management is committed to reducing this to within three months of total turnover by the year-end. This focus on working capital optimization is crucial for managing cash flow in long-cycle projects.