Fabtech Cleanrooms H1 FY27 Revenue Up 75%

The company completed 61% of its full-year FY26 performance in the first half of FY27.

The order book as of September 30, 2026, stands at ₹468 crore, more than double the ₹199 crore reported in March 2026.
The order book is well-diversified across sectors:
Pharma and Life Sciences: ₹217 crore (increased substantially from ₹42 crore)
Renewable Energy: ₹195 crore
Data Centers, Semiconductors, and Other Industries: ₹56 crore
The company is working through a ₹600 crore "hot pipeline" out of a total pipeline of ₹1,250 crore in offers.
Management stated they are becoming more selective with new orders to improve margins.
Key order highlights include a ₹92 crore project for Meril Life Sciences, described as the "biggest ticket in the industry for pharma thus far."
Ticket sizes are rising, especially in life sciences and microelectronics.

The first half was challenging due to volatile raw material costs (GI sheets, Rockwool, aluminium, powder coating material) and supply chain delays caused by geopolitical conflicts.
The company prioritized customer commitments over margins on reference projects.
Despite these challenges, EBITDA margin was maintained at 7.67%.
For H2 FY27, management expects margins to improve as:
Larger projects reach billing milestones
Volumes rise
Input costs settle
New orders come with better commercial terms

Receivables stood at ₹129 crore as of September 30, 2026, reflecting milestone-linked payments on reference projects where the company accepted longer payment terms.
The company collected ₹23 crore in October 2026.
Management expects working capital to ease by March-April 2027 as projects complete and new orders carry firmer payment terms.
Borrowings remain modest at ₹40 crore against net worth of ₹112 crore (debt-to-equity ratio of 0.37:1).
Banks have enhanced working capital lines to support H2 execution.

The Hyderabad plant is now operational, adding 50,000 square meters of production capacity on a 2-acre site near Genome Valley.
The facility includes automated roll forming machines, CNC laser cutting machines, vending machines, powder coating plant, and dedicated lines for puff and rockwool panels.
The plant is certified with ISO 9001:2015, FM 4880, FM 4882, and ROHS certifications.
The location provides proximity to customers in southern India and lowers logistics costs.
At the Umbergaon facility, automation is improving output and consistency.
The company is integrating group companies (Kelvin, Advantech, Aart) to deliver a "one-stop shop" concept.

For H2 FY27, management expects PAT to "exceed the first one fairly substantially" and expects to achieve 70-80% revenue growth for full-year FY27.
The company is targeting PAT margins of 8-10% in the future.
Management aims to become among the top three cleanroom players in India by end-FY27 and the largest integrated cleanroom player by 2030.
The current industry leader is a Japanese company with ₹1,300 crore annual revenue.
The company estimates the Indian cleanroom market at ₹5,000 crore annually and targets achieving 25-30% market share by 2030.

Management highlighted several regulatory and market tailwinds:

Pharma: Revised Schedule M requirements and international quality rejections are driving facility upgrades
Renewable Energy: Domestic content requirements are bringing cell manufacturing to India
Data Centers: AI server demand requires precision cooling and clean air; new US regulations may require 50% HEPA filtration
Semiconductors: 12 projects approved under India Semiconductor Mission

Execution timeline: The ₹468 crore order book is expected to see ₹200 crore executed in the coming months, with the remainder carrying forward. The company expects to deliver ₹400-450 crore in FY27.
Competition: The company is competing with multinational players and winning based on subject matter expertise, integrated solutions, and flexibility.
Raw material hedging: The company is not currently hedging raw materials through futures/options but is considering this approach.
Working capital: The company expects cash flows to turn positive in FY28.
Order book reconciliation: The difference between mathematical calculations and reported revenue is attributed to customer readiness delays and design finalization processes.

Management:

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