Strong order book masks margin recovery gap

Delivered 23.9% YoY (365.8 vs 295 Cr prior year Q1)

Delivered EBITDA margin 9.4% (35 Cr EBITDA on 366 Cr revenue)

Q1 at 9.4% is 110 bps below 10.5% floor; recovery unproven, depends on commodity prices reversing

Confirmed in call; execution on 4.5-month timeline (compressed vs typical 6-8 months)

Stated, internally consistent; not verifiable against delivered results

From ≥20% minimum to explicit 30% target for FY27, backed by ₹1,380 Cr order book and ₹580 Cr Q1 inflows (150% YoY).

Q1 at 9.4% vs 10.5–11.5% guidance; management maintains full-year 10.5–11.5% target, attributing 100 bps Q1 impact to war-driven steel inflation (pre-warned in May call).

Separate subsidiary EPACK Data Center Solutions formed with ₹75 Cr investment; currently 4–5% of order book; 2 major deals lost (design & pricing).

Yes, margins will improve from Q2 onwards. Q1 was impacted by commodity price inflation (pre-warned 200 bps risk, contained to 100 bps). New orders at revised pricing. Full-year guidance 10.5% maintained.

~100% fixed-price. Pass-through doesn't work due to procurement/delivery timing mismatch. Weekly order booking at current prices hedges commodity risk.

Margins should definitely be better, but early days. No quantified guidance offered.

Win rate is 20%. We selectively focus on 30–40% of quotations based on strategic fit, location, capacity, customer seriousness. Repeat customer win rate likely 30–40% (not tabulated).

Clarification: ₹2,000 Cr is NEW orders, not total. Opening order book ₹1,110 Cr + ₹2,000 Cr new = ₹3,100 Cr, less ₹1,950 Cr revenue = closing ₹1,250 Cr orders (still strong coverage).

Lost on design and pricing. Still learning how to price and optimize designs for data centers. Hopeful to book one data center deal by quarter-end.

Too early. Will have numbers by end of Q2. Data center is nascent for us.

₹2,700–2,900 Cr peak revenue (blended PEB + sandwich panels) post-capacity expansion.

Very confident. Orders from old rates either executed or repriced. New orders at revised pricing. Q2 will execute orders taken at new pricing.

4.5 months is good for EPACK design/manufacturing/site execution. Typical 6-8 months, but civil works (customer responsibility) delayed by monsoon. Repeatable if civil works ready.

Backed by ₹1,380 Cr order book + ₹2,000 Cr new order inflows target. Q1 at ₹366 Cr; ~₹400 Cr quarterly run-rate needed to hit ₹1,950 Cr. Current pace supports guidance but no buffer.

Q1 at 9.4% is 110 bps below lower bound. Management confident recovery from Q2 due to (a) old-rate orders either executed or repriced, (b) new orders at revised pricing. Steel price reversal is contingent risk.

Capex for capacity expansion underway; timelines stated; long-term peak revenue ₹2,700–2,900 Cr assumes ramp-up of all new lines.

100% of orders are fixed-price with no pass-through. Recent 12–15% steel price increase led to 100 bps margin hit in Q1. Weekly repricing hedges forward demand but leaves legacy orders exposed.

Q1 at 9.4% is 110 bps below guidance. Management claims Q2 recovery based on repricings, but only one quarter of data. If steel prices remain elevated, margin miss spreads across FY27.

Data center subsidiary capitalized at ₹75 Cr but facility location not finalized. Only 4–5% of current order book; 2 major deals lost on design and pricing. Hot air containment zones, pipe spooling, P&M modules still in design/development phase. Revenue contribution unclear.

Overall win rate 20%; company only focuses on 30–40% of quotations due to capacity and strategic selectivity. Repeat customer win rate estimated 30–40%. If lost deals indicate pricing pressure or design gaps, moat narrative weakens.

Q1 at 23.9% is 600 bps below 30% FY27 target. To hit ₹1,950 Cr, avg quarterly run-rate needs ~₹400 Cr (vs ₹366 Cr in Q1). Order book visibility supports, but execution risk elevated if monsoon delays or deal conversion slows.