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Weak AC demand may persist into H2
View Risks →EPACK Durable Limited — Q2 FY26
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.
bearish
high
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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.
EPACK Durable का Q2 FY26 कमजोर रहा। कंपनी की कमाई ₹213 करोड़ रही, जो पिछली तिमाही से 43% कम है। मुनाफा कमाने की क्षमता (EBITDA मार्जिन) सिर्फ 0.23% रही। इसकी वजह बेमौसम बारिश और AC पर GST दर कम होने से बाजार में गड़बड़ी थी। कंपनी को ₹22 करोड़ का नुकसान हुआ। प्रबंधन ने कहा कि पहली तिमाही का बचा हुआ माल और कम मांग इसकी वजह है। हालांकि, दूसरे उत्पादों (जैसे SDA, पार्ट्स, LDA) में अच्छी बढ़ोतरी हुई। पूरे साल के लिए अनुमान सावधान है: AC बाजार स्थिर रहेगा, लेकिन दूसरे उत्पाद कमाई बढ़ाएंगे। Haier का नया कारखाना दिसंबर तक तैयार हो जाएगा। खतरा: अगर गर्मी फिर कमजोर रही, तो AC की बिक्री और कारोबारी पूंजी पर दबाव बढ़ सकता है।
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Room AC segment revenue decline QoQ
-76%
-76% QoQ
Room AC segment revenue declined 76% quarter-on-quarter due to inventory overhang and muted demand.
SDA segment growth QoQ
+45%
+45% QoQ
Small domestic appliances grew 45% QoQ, led by air fryer demand and new customer additions.
Component segment growth QoQ
+73%
+73% QoQ
Component segment grew 73% QoQ, driven by non-AC orders including energy meter components.
Channel inventory reduction
~50%
-50% QoQ
Channel inventory of ACs reduced by ~50% from ~5 million units at end-Q1 to ~2.5-3 million at end-Q2.
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Guidance and risk preview
Management expects the AC industry to be at best flattish for FY26 due to 35% degrowth in H1, with recovery unlikely in H2.
Unseasonal rains and La Nina could extend winter, dampening AC demand in Q3 and Q4, making flattish industry outlook optimistic.
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