This shift has become necessary because today’s capital-intensive industries can no longer absorb the delays and cost overruns associated with conventional construction methods. They need facilities that can be built quickly, modified easily, and scaled without friction—requirements that PEB technology meets far more effectively.
According to EPack Prefab, a company that manufactures prefabricated structures, PEBs are 40-50% faster to complete, 20-25% cheaper, require 25% less manpower, and produce up to 52% less embodied carbon, which is the total greenhouse gas emissions from the entire lifecycle of a PEB, encompassing raw material extraction, manufacturing, transportation, construction, maintenance and disposal.
These advantages are now driving demand across a wide range of sectors and the PEB industry is entering a phase of meaningful expansion. It still accounts for only 3-5% of India’s total construction market, so there’s plenty of headroom for growth. The numbers already reflect this early transition. The PEB industry was valued at ₹13,000 crore in FY19, is estimated at ₹21,000 crore in FY25, and is projected to touch ₹34,500 crore by FY30.
Behind these figures lies a structural shift toward organised players, whose share is expected to rise from 42-47% in FY25 to 47-52% by FY30. Much of this momentum is driven by high-growth, emerging sectors such as data centres, renewable energy, and semiconductors.
For example, data centres in certain locations are already using PEB technology, causing PEB companies to increase their investment in this segment. Renewable energy is also opening up new avenues as the sector moves into upstream areas such as glass and wafer manufacturing.
Additional demand is coming from semiconductors, automotive, electric vehicle manufacturing, and other industries that need rapid, scalable and adaptable construction.
Two leading PEB companies have emerged as early beneficiaries of this shift. Here’s a closer look at what is driving their momentum.
Epack Prefab Technologies: third-largest player
Epack Prefab is one of the fastest-growing end-to-end prefab solution providers in India and the third-largest by capacity. The prefab business specifically clocked a robust 46% compound annual growth rate (CAGR) over FY22 to FY25, which is roughly six times the overall prefab industry’s CAGR of 8.3% over the same period, positioning Epack as one of the fastest-growing players.
Management believes the industry’s positive momentum will continue, and Epack will continue to outpace the overall industry’s growth of 10-12%. The company also aims to consolidate its position as a leader in the prefab industry over the next three to four quarters.
Epac’s competitive edge comes from its execution speed, which has previously been a pain point for many PEB companies. The company holds the world record for the fastest construction of a pre-engineered factory building (150,000 sq ft completed in 150 hours) in Mambatu, Tamil Nadu. South India is currently experiencing significant growth owing to the increased industrial setup there.
Epack offers an extensive portfolio of prefabricated and packaging solutions, including pre-engineered steel buildings and prefabricated structures, sandwich-insulated panels, and expanded polystyrene packaging products. Sandwich insulated panels offer fire resistance, sound insulation, and thermal resistance—essential components in high-growth sectors such as data centres.
Capacity expansion to capture the next phase of industry growth
As of 30 September, the company’s order book stood at ₹920 crore, equivalent to about seven to eight months of revenue. Epack also received an order worth ₹140 crore in October, taking its order book to ₹1,060 crore. Management said new orders were mostly coming from sunrise sectors with high capital expenditure.
Rapid solar capacity expansion and opportunities in upstream activities such as glass and wafer manufacturing are driving demand. The semiconductor sector is also contributing significantly to order booking. Orders are coming from the automotive industry, including new inquiries for EV manufacturing plants and battery energy storage plants.
Although Epack has not yet built an entire PEB for a data centre, it is executing projects that involve the installation of specialised, fire-rated sandwich panels. It sees the data centre market as promising for future steel structure fabrication and supply.
The company is aggressively expanding its manufacturing capabilities to maintain its growth momentum and meet its 10% market-share goal (from 5% to 5.5% at present). It currently has an annual PEB capacity of 133,922 metric tonnes (MT) and 1.31 million square meters of total sandwich panel capacity.
Utilisation of built-up section capacity was higher at 88% in Q2 FY26, reflecting increased demand. The company is expanding to cater to this rising demand, including a brownfield expansion for structural steel fabrication capacity in Andhra Pradesh. It will increase annual capacity from 25,500 MT to 32,000 MT and is expected to commence commercial operations in Q4 FY26.
The company is investing ₹58 crore of capex for this project and expects to generate revenues of more than ₹300 crore, based on a scheduled asset turnover of about 7 times. Epack is also setting up a continuous insulated sandwich panel line (800,000 square meter capacity) and a pre-engineered capacity of 11,300 MTPA.
The facility is scheduled to begin production in the second quarter of FY27. With an investment of ₹101.6 crore and an asset turnover of 2.5 times, Epack expects to generate up to ₹250 crore of revenue from the panel line alone. It is also expanding outside India, from where it generates most of its revenue.
Financial performance shows strength, operating leverage
Export sales – mainly to SAARC countries such as Bhutan, Nepal, Bangladesh, and Sri Lanka – currently account for only 1.5-2% of revenue. It plans to leverage the Mambattu facility’s port proximity to the Middle East and Africa to evaluate exports to those regions.
The company has reported robust financials. Epack’s revenue rose 35.8% year-on-year to ₹729 crore in the first half of FY26, driven by strong execution of the order book. Operational performance remained strong, with Ebitda growth of 45.6% to ₹81 crore and a margin of 11.1% (higher than competitor Interarch’s 8.4%). Fixed asset turnover in H1 was the highest at 4.8 times, reflecting high capacity utilisation.
Profit after tax (PAT) surged 64.4% to ₹46 crore. The first half accounts for 45% of annual revenue, while the second half accounts for 55%. The company is net-debt-free and generated ₹83 crore in cash from operations. Its return ratios are among the best in the sector, with a return on capital employed (RoCE) of 22% and a return on equity of 23%, higher than Interarch’s 14% and 19%, respectively.
Interarch Building Solutions: second-largest player
Interarch is the second-largest PEB company in India by capacity after private firm Kirby Building Systems. The company positions itself as building-agnostic, capable of constructing everything from warehouses and industrial plants to high-rise buildings, malls, airports, stadiums, houses, villas and resorts.
As of November, the company has five manufacturing facilities in Uttarakhand, Andhra Pradesh and Tamil Nadu. The total annual installed capacity stands at 201,000 MT, with capacity utilisation of about 84%. As of 31 October, the total order book is ₹1,630 crore, which is about one year’s revenue.
Interarch has begun laying the groundwork for two new manufacturing facilities in Gujarat and Andhra Pradesh, which will add a combined 65,000 MT of capacity by Q2 FY27. The Gujarat plant, focused on PEB solutions, will add 40,000 MT, while the Athivaram unit will bring in 25,000 MT for heavy steel structures and multistorey buildings.
The combined outlay stands at about ₹150 crore, to be deployed over the next year, with spending split almost evenly between FY26 and FY27. These locations will strengthen the company’s presence in core industrial clusters, and the expansion will extend its reach into heavier fabrication segments such as semiconductors, electric vehicles, and allied industry clusters.
Management expects revenues of over ₹2,000 crore once this capacity is fully commissioned in FY27, and 20% growth in FY28. The company relies heavily on repeat business, with 80-85% of recent orders coming from existing customers. To acquire new customers, Interarch is expanding its sales network in strategic overseas markets across Central & West Asia, Southeast Asia, and Africa.
Interarch also reported strong financials for the first half of FY26. Revenue rose 39% year-on-year to ₹872 crore as execution stayed firm. Ebitda increased 40% to ₹73 crore, with margins at 8.4% (trailing Epack Prefab’s levels). PAT grew 48% to ₹61 crore, supported by better operating leverage and a near-peak capacity utilisation.
Bottomline
At ₹334 a share, Epack trades at a price-to-earnings multiple of 45, a premium to Interarch’s 34. Although Interarch is larger, Epack’s industry-leading margins, stronger return ratios, and sharper growth trajectory help justify part of this valuation gap. Even so, the stock now looks fully priced and now hinges on bottom-line growth.
Note that the PEB sector comes with its own set of risks. Growth hinges on overall capex momentum, making it vulnerable to shifts in economic activity, policy delays, and private-sector investment sentiment. And volatility in steel prices remains a constant threat to margins.
For more such analysis, read Profit Pulse.
Madhvendra has more than seven years of experience in equity markets and writes detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments.
The writer does not hold the stocks discussed in this article.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.