Fabtech Techn. — Q4 FY26 earnings call

Call held 12 May 2026

Management summary

Fabtech Technologies Cleanrooms reported strong consolidated growth in FY26, with total income up 46.93% and PAT up 18.95%, driven by strategic expansion into new high-growth sectors like solar and data centers. The company's order book stands at ₹199 crores with a significant pipeline, indicating future growth. However, standalone performance saw declines, and the company faced one-time write-offs and rising working capital due to investments.

Highlights

  • Consolidated total income grew 46.93% YoY to ₹221.72 crores in FY26, up from ₹150.90 crores.

  • Consolidated EBITDA increased 28.31% YoY to ₹23.16 crores in FY26, up from ₹18.05 crores.

  • Consolidated PAT rose 18.95% YoY to ₹15.82 crores in FY26, up from ₹13.3 crores.

  • Current order book of ₹199 crores, with a robust pipeline of ₹480 crores, providing strong future visibility.

  • Successful strategic repositioning into high-growth sectors like data centers, solar, and semiconductors, with a key milestone being a ₹68 crore solar project.

Concerns

  • Standalone EBITDA declined 21.5% YoY to ₹12.96 crores in FY26, down from ₹16.51 crores.

  • Standalone PAT decreased 24.75% YoY to ₹9.06 crores in FY26, down from ₹12.04 crores.

  • One-time write-off of ₹0.84 crores (84 lakhs) in sundry debtors due to an NCLT order.

  • One-time legacy impact of ₹1 crore from the strategic merger of Altair into Advantek.

  • Working capital and debt are rising due to increased demand and investments for future growth, stressing working capital.

Key financials

  1. Consolidated Total Income ₹221.72 Cr +46.9%YoY
  2. Consolidated EBITDA ₹23.16 Cr +28.3%YoY
  3. Consolidated PAT ₹15.82 Cr +18.9%YoY
  4. Standalone Total Income ₹143.39 Cr +2.4%YoY
  5. Standalone EBITDA ₹12.96 Cr -21.5%YoY
  6. Standalone PAT ₹9.06 Cr -24.8%YoY

What they filed

Q4 FY26: revenue up 146.6%, net profit up 160.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue58 62 88 76 143 +147%
EBITDA7 7 9 5 17 +143%
Net profit5 5 8 4 13 +160%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹199 Cr

as of 2026-05-12 quantified

Execution

₹200 crore order book to be executed within six months

Pipeline

other

Pipeline of potential orders

Management expects the order book to jump to ₹275-300 crores within 15-20 days and is confident in executing ₹200 crores within six months.

Source: Prepared remarks

Capital allocation

medium confidence
  • Debt Debt disclosed
    for the moment the debt rising, the working capital rising, because we have borrowed to meet the... Fantastic demand which is emerged
  • M&A Altair into Advantek Merger · Integrated

    Strategic change to plug losses from Altair and enhance capabilities, increasing stake in Advantek.

    Resulted in a one-time legacy impact of about ₹1 crore, but is expected to be beneficial going forward.

    Additionally, the strategic merger of Altair into Advantek resulted in a one-time legacy impact of about 1 crore. while also increasing our stake in Advantek to 34.99%.

Guidance & targets

Order Book

  • Order Book Value Order Book · within 15-20 days (from May 12, 2026) · High confidence ₹275-300 crores

    From ₹199 crores today

    We are entering the new year with 199 and in 15 days time you will see the numbers going to upwards of 275 to 300 crores.

    — Aasif Khan

  • Order Book Execution Order Book · within six months · High confidence ₹200 crores
    Otherwise, this 200 for sure will be definitely within six months.

    — Aasif Khan

Stake Holding

  • Kelvin Stake Stake Holding · very soon · Medium confidence 70-72%

    From 60.53% today

    Kelvin, we have gone to 60 and we are going to, we're going to enhance the stake very soon there to 70 to 72%

    — Aasif Khan

Top Line

  • Top Line Growth Top Line · FY27 · Medium confidence Fantastic top line
    So as of now, we are very confident of giving of doing a fantastic top line.

    — Aasif Khan

Margins

  • Margin Maintenance Margins · FY27 · Medium confidence Maintaining the margins
    Maintaining the margins, and after a reference commissioning, I don't think so. We will need to then take business decisions on the on the on the new projects that has largely been taken care of.

    — Aasif Khan

What to watch in Q1 FY27

Order Book Value

within 15-20 days (from May 12, 2026)
Current ₹199 crores
Target ₹275-300 crores

Why it matters

To verify the immediate growth in the order book as projected by management, indicating strong near-term business momentum.

We are entering the new year with 199 and in 15 days time you will see the numbers going to upwards of 275 to 300 crores.

Risks & concerns

  • Geopolitical factors and raw material shortages

    medium

    Caused project timeline delays in March 2026 and continue to pose supply chain pressures.

    Management acknowledged

  • Working capital stress and rising debt

    medium

    Debt and working capital are rising due to investments for future growth and meeting increased demand, which is stressing current working capital.

    Management acknowledged

  • Information security issues

    low

    Initial issues identified, but governance framework has since been strengthened to mitigate future risks.

    Management acknowledged

  • One-time financial impacts

    low

    Includes a ₹0.84 crore write-off in sundry debtors due to an NCLT order and a ₹1 crore legacy impact from the Altair-Advantek merger.

    Management acknowledged

Q&A highlights

6 direct
Diversification into high-growth segments (semicon, data center, biotechs) Direct
So these are the, to answer your question, pointedly, you will see semicon happening. But currently, the solar chain which you see in the market, we are about 23 solar active hot leads available... We have Waree reference getting established... We have Satvik and Gupin getting established. IMR will add more to those names. And there is a very beautiful large order which is about to happen.

Highlights the company's strategic shift and early successes in new, high-growth sectors beyond traditional pharma, validating their repositioning efforts.

Asked by Sudhir

Plans to increase stake in Aart and Advantek Partial
Kelvin, we have gone to 60 and we are going to, we're going to enhance the stake very soon there to 70 to 72%... Advantek we have now, we have 80% in Altair, Advantek by twenty-six percent, we amalgamated, and now... Resultant, we are holding 30, 34.99 %... We have to cut short the plan, which was not working... Now that has been plugged, and you will see very critical situation developing in Advantek, where we are going for Euro certification.

Clarifies the current stake in Advantek after the merger and outlines future plans for Kelvin and Advantek (Euro certification), indicating further strategic investments and growth drivers.

Asked by Sudhir

FY27 guidance on margin and top line Partial
I will only tell you why we are conservative and giving you the estimates of 20 to 30 to 40 percent. We are entering the new year with 199 and in 15 days time you will see the numbers going to upwards of 275 to 300 crores... this year we learned A lot. So that learning is now going to help us do better in the next year... Altair, which was draining almost once year, we have converted that. So it's like, you know, you are plugging the losses. And it in effect, it improves the top line as well as the bottom line.

Provides an initial, albeit conservative, outlook for FY27 order book growth and hints at margin improvement due to past learnings and the resolution of the Altair issue.

Asked by Sudhir

Long-term trajectory (2-3 years) and opportunity size Direct
The market is beautiful, fantastic, lovely. There's a lot of water to drink, but do we have the capacity as of not to bring that much water? Number one, we are building a reserves to absorb as much as we can... The next thing is, you will see for the moment the debt rising, the working capital rising, because we have borrowed to meet the... Fantastic demand which is emerged... 27-28 onwards, it will be a beautiful takeoff where we would have had our retention money coming in...

Offers a qualitative but optimistic long-term view, acknowledging the need for capacity building and the short-term impact of rising debt/working capital to fund growth.

Asked by Sanjay Shah

Aart's contribution and import substitution Direct
We have not established ourselves only in photovoltaic or solar disk. We have established ourselves in non-pharma sector... Fabtech is going to be a leading name... what we developed for solar, solar manufacturing... is going to also apply for in incoming future non-pharma, clean room sector... high sensitivity panels or T-grid systems are currently procured internationally, but all the suppliers are talking to us to partner with them...

Details the strategic importance of Aart in non-pharma and microelectronics, emphasizing its role in import substitution and attracting partnerships with international suppliers.

Asked by Sudhir

New products under development Direct
we are working on certain, like for example, one of our client wanted to use the sprinkler suitable to our system... there is some R&D going on for number of products and number of different systems which will can be used in solar, photovoltaic, semiconductor, and other micro industries... we already have booked the pilot projects and it is a parallel thing that while doing the pilot projects, we are also developing the product.

Reveals ongoing R&D efforts for new products and systems tailored for emerging sectors, with pilot projects already secured, indicating future revenue streams.

Asked by Dhruv Bheda

Capability in handling different cleanroom classes Direct
we have class 100, we have class 10, we have class one, we have class 10,000... we are talking about not just HEPA filters, but very large scale integrated filters, which is talking of 0.12 microns... we have done till class 100 till now, but when you and Rajesh has done class 10 + 1 also in simple language...

Demonstrates the company's advanced technical capabilities in cleanroom technology, including ultra-critical classes required for semiconductors, positioning them for high-precision projects.

Asked by Hemant

Price revision due to commodity war Direct
our team is approaching all the clients due to force majeure. We are approaching all the clients for a price revision... we started working with cylinders. We started altering our supply chain systems and we are cracking it... whatever we are doing over here, your what's the war has made life complicated for everybody, including us. Eventually, we'll be managing it if it hits us, yes it will hit us.

Addresses the impact of geopolitical events and raw material volatility on project costs and pricing, highlighting the company's proactive approach to price revisions and supply chain innovation.

Asked by Hemant

3 min read 7 chapters

Detailed narrative

Financial Performance Overview for FY26

Fabtech Technologies Cleanrooms Limited reported a strong consolidated performance for FY26. Total income grew by 46.93% year-on-year to ₹221.72 crores, up from ₹150.90 crores in the previous year. Consolidated EBITDA increased by 28.31% to ₹23.16 crores, compared to ₹18.05 crores in FY25. Consolidated PAT also saw significant growth, rising 18.95% year-on-year to ₹15.82 crores from ₹13.3 crores. However, standalone results showed a decline, with EBITDA down 21.5% to ₹12.96 crores and PAT down 24.75% to ₹9.06 crores, reflecting the investments made for future readiness.

Strategic Repositioning and New Market Entry

FY26 was a pivotal year for Fabtech, marked by strategic repositioning for future growth. The company expanded its presence into high-growth sectors such as data centers, solar technology, and semiconductor segments, which are expected to see sustained multi-year investments. These are not opportunistic entries but strategic moves to prioritize capabilities and long-term positioning over near-term margins. A key milestone was the successful execution of a ₹68 crore solar project, which reinforced the company's focus on long-term growth and served as a benchmark for attracting further orders.

Order Book and Pipeline Visibility

The company's current order book stands at approximately ₹199 crores, demonstrating significant growth. This is complemented by a robust pipeline of ₹480 crores, providing substantial future visibility. Management anticipates the order book to jump to ₹275-300 crores within the next 15-20 days. Furthermore, the company is confident in executing ₹200 crores of its current order book within the next six months, indicating a strong conversion rate and execution capability.

Operational Enhancements and Infrastructure

Fabtech continues to strengthen its infrastructure to support future growth, including expanding its Hyderabad facility to 2 acres with a built-up area of 50,000 square feet and a production capacity of 2,000 square meters per day. This facility includes an automatic panel production line. The company has also significantly enhanced and automated its overall manufacturing facility. Internally, Fabtech has formulated 'Vision 2030' to become a powerhouse in cleanroom and engineering precision, focusing on acquiring top talent and establishing world-class logic delivery standards across India.

Capital Allocation and Investments

The company's integrated ecosystem plays a critical role in its expansion strategy. Fabtech holds a 60.53% stake in Kelvin, which strengthens HVAC capabilities and expands presence beyond pharma into data centers and solar sectors. Management plans to increase its stake in Kelvin to 70-72% soon. The strategic merger of Altair into Advantek, increasing Fabtech's stake to 34.99%, was undertaken to plug previous losses and enhance backward integration through in-house AHU manufacturing. These investments, however, have led to rising debt and working capital, which management acknowledges is stressing current capital but is necessary to meet demand and fund future growth.

Challenges and Mitigation

Fabtech faced several challenges during the year, including initial information security issues, which have since been addressed by strengthening governance frameworks. Project timelines experienced delays in March due to global geopolitical factors and raw material shortages. The company also incurred a one-time write-off of ₹0.84 crores in sundry debtors due to an NCLT order and a ₹1 crore legacy impact from the Altair-Advantek merger. Despite these, management emphasized their resilience, innovation in supply chain management, and proactive approach to managing commodity price volatility by seeking price revisions from clients.

Advanced Cleanroom Capabilities

The company highlighted its advanced capabilities in cleanroom technology, capable of handling ultra-critical ISO classes such as Class 100, Class 10, Class 1, and even Class 10+1. This includes managing particle sizes down to 0.12 microns, essential for semiconductor manufacturing. Fabtech's expertise extends to designing and executing complex, high-precision cleanroom systems that can support heavy loads and are highly modular and adaptable, allowing for quick modifications and upgrades to meet evolving technological demands.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls