EPack Prefab’s (NSE: EPACKPEB) stock fell 10% as a 43% quarter-on-quarter drop in profit overshadowed a 45% annual increase in earnings. Despite short-term volatility, management maintains full-year revenue guidance supported by a growing order book and infrastructure demand.
EPack Prefab Technologies Ltd. shares hit a 10% lower circuit on January 22, 2026, falling to ₹205.30. The market reaction followed the announcement of third-quarter results that showed strong year-on-year growth but a significant contraction compared to the preceding quarter. Prior to this decline, the company’s market capitalization stood at approximately ₹2,300 crore with a price-to-earnings ratio of 38.63.
Recent Development
The sell-off was triggered by the release of unaudited financial results for the quarter ending December 31, 2025. While the company reported a 45% year-on-year increase in profit after tax, investors focused on a sequential weakening of performance. Specifically, revenue declined by 25% and profit after tax dropped by 43% compared to the second quarter of the 2026 fiscal year.
Financial Highlights
Revenue for the third quarter reached ₹331.18 crore, representing a 22.1% increase over the ₹266.38 crore reported in the same period last year. Profit after tax rose to ₹16.8 crore from ₹11.62 crore on a year-on-year basis. However, on a sequential basis, revenue fell from ₹433.9 crore in the second quarter. EBITDA for the period was ₹32.7 crore, a 34.6% decrease from the ₹50 crore recorded in the prior quarter. EBITDA margins also saw compression, contracting to 10.1% from 11.5% in the preceding three-month period.
Outlook & Strategy
Management has reaffirmed its full-year revenue guidance for FY26 in the range of ₹1,500 crore to ₹1,550 crore. For the upcoming fourth quarter, the company projects revenue between ₹450 crore and ₹500 crore. Growth is currently supported by an order book of ₹1,216 crore, which grew 32% on a quarter-on-quarter basis. To facilitate future scale, the company has completed the acquisition of 39 acres of land in Gujarat for capacity expansion.
Sector and Macro Context
The Indian prefabricated buildings market is expected to grow at a compound annual growth rate of 6.84% to 12.32% between 2026 and 2034. This growth is tied to broader infrastructure development as India is projected to become the world’s third-largest construction market. Within this sector, EPack Prefab is noted for its return ratios and balance sheet strength, though it maintains a smaller operational scale compared to larger industry competitors.