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Revenue
₹213 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹0.5 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
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What the record says.
EPACK Durable reported a weak Q2 FY26 with revenue of ₹213 crore, down 43% QoQ, and an EBITDA margin of just 0.23%, reflecting the severe impact of unseasonal rains and GST rate cut disruption on the room AC segment. The company posted a net loss of ₹22 crore. Management attributed the decline to inventory overhang from Q1 and muted demand, though diversification into SDA (+45% QoQ), components (+73% QoQ), and LDA (+466% QoQ) provided some offset. Guidance for FY26 is cautious: AC industry likely flattish, but non-AC segments are expected to drive overall revenue growth. The new Haier facility is ready for mass production by end-December. Key risk: a potential second consecutive weak summer could further pressure AC volumes and working capital.
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Guidance to track
- Management expects the AC industry to be at best flattish for FY26 due to 35% degrowth in H1, with recovery unlikely in H2.
- SDA, LDA, and component segments are expected to grow strongly, offsetting AC weakness and ensuring overall revenue growth over last year.
- The dedicated Haier facility is ready; mass production for ACs is planned to start by end-December 2025 or first week of January 2026.
- Total planned capex of ~₹450 crore for Sri City, Bhiwadi, and Haier facilities; ₹175 crore already spent in H1 FY26.
Risks flagged
- Unseasonal rains and La Nina could extend winter, dampening AC demand in Q3 and Q4, making flattish industry outlook optimistic.
- Expected 5-7% price increase due to new energy norms and higher copper costs could offset GST benefit and reduce consumer affordability.
- Inventory overhang led to increased working capital and debt; net debt stood at ~₹500 crore, and recovery may take time.
- The industry faces retrospective duty demands on copper tube imports from FTA countries; outcome uncertain.
Key quotes
- Our revenue guidance for the current financial year will continue to grow with our diversification efforts... for AC yes we are little pessimistic about the growth of AC and we believe that the industry at best could be flattish.
- The festive season particularly during Diwali saw a surge in customer durable sales especially air conditioners and expecting the momentum to continue.
- We have added several key new customers like groups, Voltas, Lloyd, Flipkart, Nan, MicroMax... there's been addition of at least six-seven new customers of which four or five are really big and significant.
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