Fabtech Technologies Limited — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

Fabtech Technologies Limited reported strong H1 FY26 results with significant year-on-year growth in both total income and net profit, alongside improved EBITDA margins. The company maintains a robust order book, driven by high-value turnkey projects in emerging markets. While acknowledging quarter-on-quarter margin fluctuations and ongoing efforts to optimize working capital, management remains focused on sustained growth and profitability.

Highlights

  • Total income for H1 FY26 was INR193.23 crores, reflecting a 109.9% year-on-year growth.

  • Net profit for H1 FY26 reached INR21.98 crores, up 101.6% year-on-year.

  • EBITDA for H1 FY26 stood at INR28.40 crores, with margins improving significantly to 14.7%.

  • The order book remains strong at INR904.42 crores as of July 31, 2025, providing clear visibility for sustained revenue momentum.

  • Secured several high-value turnkey projects across MENA, GCC, and ECO Zone regions.

Concerns

  • EBITDA margin fluctuates quarter-on-quarter due to the lumpy nature of project-based business, with Q1 showing a loss and Q2 a profit.

  • Working capital management, particularly receivable cycles, is an area management is actively working to improve.

Key financials

  1. Total Income ₹193.228 Cr +109.9%YoY
  2. Net Profit ₹21.98 Cr +101.6%YoY
  3. EBITDA ₹28.4 Cr
  4. EBITDA Margin 14.7%

What they filed

Q1 FY27: revenue up 10.2%, net profit up 168.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue59 104 135 68 121 +107%63 −40%159 +18%75 +10%
EBITDA5 23 18 -6 30 +564%-12 −151%22 +21%4 +168%
Net profit5 20 15 -6 28 +449%-6 −128%22 +46%4 +169%
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

₹904.419 Cr

as of 2025-07-31 quantified

9% QoQ

Execution

18 to 24 months

Pipeline

deal pipeline tcv

hot pipeline with projects submitted for negotiation

The order book is strong and growing, providing clear revenue visibility for the coming quarters, with projects typically executed over 18-24 months.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    Actually, as we said that we are not capital-intensive group. Our revenue base is on project. So for example, today, for this revenue, we are buying X equipment. So in case if you want to double, so you can say, okay, X plus Y, we are going, and the same team can multiply because these are all buying and supplying and doing the engineering, the same team can do the double revenue as well.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · Yearly · Medium confidence Sustain and grow, better than last year
    Currently, I would like to say that the EBITDA margin is focused on structural efficiencies which are driving it, which are being run by our purchase teams, sales teams and the high margin capex projects that we are currently concluding. I would say we are forward looking, we are focusing on ensuring that these margins sustain and grow.

    — Aman Anavkar

Order Book

  • Order Book Growth Order Book · Quarterly · Medium confidence 7-9%
    So, the growth percentage of our order book is around 7% to 9% at this time.

    — Ashwani Singh

Revenue

  • Revenue Growth Revenue · Year-on-year · Medium confidence 20-25%
    As Aman just mentioned, from last H1 to this H1 and last year to this year, we always look for a sustained growth from 20% to 25%.

    — Ashwani Singh

What to watch in Q3 FY26

EBITDA Margin Trajectory

Next quarter / Yearly
Current 14.7% for H1 FY26
Target Sustained and growing, better than last year

Why it matters

Tracking if management can achieve its goal of improving and sustaining margins despite the lumpy business nature.

Currently, I would like to say that the EBITDA margin is focused on structural efficiencies which are driving it, which are being run by our purchase teams, sales teams and the high margin capex projects that we are currently concluding. I would say we are forward looking, we are focusing on ensuring that these margins sustain and grow.

Risks & concerns

  • EBITDA Margin Volatility

    medium

    EBITDA margins fluctuate significantly quarter-on-quarter due to the lumpy nature of project-based business, making Q-o-Q comparisons less relevant.

    Analyst acknowledged

  • Working Capital Management

    medium

    There is room for improvement in reducing receivable cycles and enhancing collection procedures to optimize working capital.

    Management acknowledged

Q&A highlights

7 direct
EBITDA Margin Fluctuation and Sustainability Partial
Yes, Mr. Sushant, this is Ashwani. Sushant, we are into a project company where our business and projects go as per the client readiness. So sometimes our business is lumpy in some quarters and we do not measure our EBITDA quarter on quarter. Generally, we focus only on the yearly model.

Analyst questioned the high fluctuation in EBITDA margins and management clarified their focus on yearly performance for project-based business, but did not give specific numerical guidance for future margins.

Asked by Sushant Shah

Order Book Pipeline and Growth Direct
Currently, there is a hot pipeline that is ongoing and projects that we have already submitted for under negotiation. If I would say there is a 9% growth per quarter that we are looking at in terms of the order conversions. This year it was 90,441.87 lakh order book as of July 2025 and we have seen a 9% growth as of September 2025, which you will also see from the press release that we will do shortly.

Provides specific details on the current order book value, its growth trajectory, and the nature of the pipeline, indicating future revenue visibility.

Asked by Sushant Shah

KP Group MOU Details Direct
Currently, we have signed a positive MOU for sustainable energies with KP Group and we are looking at entering new projects with our partnership in MOU terms with KP Group so that we can broaden our services, go after sustainable offering in the projects that we currently do and increase our product profile also by offering these sustainable solutions to our existing and new clients, which increases our positioning in the market positively.

Highlights a new strategic partnership aimed at expanding service offerings into sustainable solutions, potentially opening new revenue streams and enhancing market position.

Asked by Sushant Shah

Working Capital Requirements and Improvement Direct
So basically, yes, on the working capital number, we are definitely working on to further reduce our receivable cycles, working on more efficiently and improving our collection procedures with terms of timely completions of project. So yes, there is a margin of improvement, which we are working on. And there will be some improvement seen in that. Yes.

Addresses a key operational efficiency area, indicating management's focus on improving cash flow and financial health, which is critical for a project-based business.

Asked by Agastya Dave

Company's Core Business Explanation Direct
Sir, in simple words, let me tell you what we do. If a client wants to make medicines, medical products, devices in the pharma, healthcare, biotech industry, then we design those plants and we build those plants. End to end turnkey project management, design and build.

Clarifies the company's fundamental business model as a turnkey solution provider for the life sciences and healthcare sectors, emphasizing their comprehensive service offering.

Asked by Sushant Shah

MENA Region Market Opportunity and Project Complexity Direct
So to put into perspective, globally, all the pharmaceutical emerging markets, everyone is moving towards medicinal independence. We've uploaded this in our DRHP and mentioned this during our calls with investors that we operate in the pharmaceutical emerging markets, primarily being Middle East, Africa and any other geography like the Persian Gulf, GCC. We know that there is a hot project pipeline that we've already submitted to our clients there.

Provides strategic context for the company's focus on high-growth emerging markets and the underlying drivers (medicinal independence), confirming a strong project pipeline in these regions.

Asked by Agastya Dave

Differentiation from Competitors Direct
Number one, the in-house manufacturing of process air and water, the criticalities is what makes us positioned better than competitors from the West, which is European mostly. Number two, experience that Fabtech already has in over 62 countries up to now in the design and build space.

Explains the company's competitive advantages, particularly its in-house manufacturing of critical components and extensive global experience, which are crucial for securing projects in a regulated industry.

Asked by Heer Haria

Execution Capacity and Growth Constraints Direct
Actually, as we said that we are not capital-intensive group. Our revenue base is on project. So for example, today, for this revenue, we are buying X equipment. So in case if you want to double, so you can say, okay, X plus Y, we are going, and the same team can multiply because these are all buying and supplying and doing the engineering, the same team can do the double revenue as well.

Clarifies the company's scalable business model, indicating that capacity is not a major constraint for growth, with working capital being the primary limiting factor.

Asked by Agastya Dave

2 min read 6 chapters

Detailed narrative

Strong H1 FY26 Financial Performance

Fabtech Technologies Limited delivered a robust financial performance in H1 FY26, with total income reaching INR193.23 crores, marking a substantial 109.9% year-on-year growth. Net profit also saw a significant increase of 101.6% year-on-year, totaling INR21.98 crores. The company's EBITDA for the period stood at INR28.40 crores, with margins improving to 14.7%, reflecting effective cost management and project execution.

Robust Order Book and Future Visibility

The company reported a strong order book of INR904.42 crores as of July 31, 2025, which provides clear revenue visibility for the upcoming quarters. Management indicated a consistent 7-9% growth in the order book by September 2025 and expects a similar quarterly growth in order conversions. Projects undertaken by Fabtech typically have an execution timeline ranging from 18 to 24 months, ensuring a steady pipeline of work.

Strategic Focus on Emerging Markets and Turnkey Solutions

Fabtech operates across 22 countries, specializing in end-to-end turnkey engineering solutions for the life sciences and healthcare sectors, including critical process, air, and water systems. The company is strategically focused on high-growth emerging markets such as MENA, GCC, and ECO Zone regions, driven by the global trend towards medicinal independence. Its in-house design, engineering, and manufacturing capabilities provide a competitive edge, ensuring precision, speed, and compliance for clients globally.

EBITDA Margin Management and Working Capital Initiatives

Management acknowledged the quarter-on-quarter fluctuations in EBITDA margins, attributing them to the lumpy nature of their project-based business, with Q1 showing a loss and Q2 a profit. However, the focus remains on yearly performance, with a goal to sustain and grow margins, aiming for better performance than the previous year. The company is also actively working to improve working capital by reducing receivable cycles and enhancing collection procedures.

Partnership for Sustainable Offerings

Fabtech has entered into a Memorandum of Understanding (MOU) with KP Group to explore opportunities in sustainable energies. This partnership aims to broaden Fabtech's service portfolio, integrate sustainable solutions into its existing and new projects, and enhance its market positioning. This strategic collaboration is expected to cater to the growing demand for environmentally conscious engineering solutions within the life sciences sector.

Non-Capital Intensive and Scalable Business Model

The company clarified that its business model is not capital-intensive, with revenue primarily driven by projects rather than large fixed asset investments. Fabtech's existing team and infrastructure are capable of handling increased project volumes by acquiring necessary equipment, allowing for scalability. Management indicated that working capital, rather than fixed capacity, is the primary constraint for accelerating growth.

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