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View Promises →EPACK Durable Limited — Q3 FY26
EPACK Durable reported Q3 FY26 revenue of ₹427.8 Cr (+13.5% YoY) and EBITDA of ₹31.7 Cr (+31.5% YoY), with EBITDA margin expanding 102 bps to 7.41%.
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EPACK Durable reported Q3 FY26 revenue of ₹427.8 Cr (+13.5% YoY) and EBITDA of ₹31.7 Cr (+31.5% YoY), with EBITDA margin expanding 102 bps to 7.41%. Growth was driven by strong performance in components (+61% YoY), large domestic appliances (+74% YoY), and small domestic appliances (+30% YoY), offsetting a marginal 1% decline in the AC segment. The company added two new customers, bringing the total to 67. Management guided for AC revenue mix to remain at 60-65%, with SDA and components contributing 12-15% and ~20% respectively. Capex of ₹450 Cr over 12-18 months is underway, with ₹218 Cr already incurred. The washing machine business is ramping up, and the new JV facility with Haier is ready for production. Risks include potential demand slowdown from commodity-driven price hikes and high channel inventory of old BEE-rated ACs.
ईपैक ड्यूरेबल ने वित्त वर्ष 2026 की तीसरी तिमाही में 427.8 करोड़ रुपये की कमाई की, जो पिछले साल से 13.5% ज्यादा है। कंपनी का मुनाफा (EBITDA) 31.7 करोड़ रुपये रहा, जो 31.5% बढ़ा। मुनाफे की दर (EBITDA मार्जिन) 7.41% हो गई, जो पिछले साल से 1.02% ज्यादा है। कंपनी के पुर्जों का कारोबार 61%, बड़े घरेलू उपकरण 74% और छोटे उपकरण 30% बढ़े, जबकि एसी बिक्री में 1% की गिरावट आई। दो नए ग्राहक जुड़े, अब कुल 67 ग्राहक हैं। कंपनी ने 450 करोड़ रुपये का निवेश किया है, जिसमें से 218 करोड़ खर्च हो चुके हैं। वॉशिंग मशीन का काम बढ़ रहा है और हायर के साथ नया कारखाना तैयार है। जोखिम: महंगाई से मांग कम हो सकती है और पुराने एसी का स्टॉक ज्यादा है।
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High channel inventory of old BEE-rated ACs
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Read Transcript →Quarter Snapshot
AC segment revenue growth
-1%
-1% YoY
AC business declined marginally YoY due to industry headwinds, but overall revenue grew due to diversification.
Component segment growth
61%
+61% YoY
Component segment grew 61% YoY driven by strong order pipeline for PCBs, copper parts, and plastic molded components.
Large domestic appliances growth
74%
+74% YoY
LDA segment grew 74% YoY, led by washing machine ramp-up and cooler demand.
Customer base
67
+2 in Q3
Added two new customers during the quarter, with supplies already commenced.
What Changed vs Last Quarter
NEW
AC revenue mix target of 60-65%
Management expects AC to contribute 60-65% of total revenue, with SDA at 12-15% and components at ~20%.
NEW
Capex of ₹450 Cr over 12-18 months
Company has incurred ₹218 Cr in first 9 months and plans additional ₹225 Cr in next 6-9 months for capacity expansion.
NEW
EBITDA margin target of 7.5-8% in medium term
Company confident of maintaining EBITDA margin in the 7.5-8% range over medium to long term.
NEW
AC industry growth of 15-20% over FY25
Management expects AC industry to grow 15-20% in FY27 over FY25, with EPACK growing at 20-30% in AC.
DROPPED
AC industry flattish for FY26
Management expects the AC industry to be at best flattish for FY26 due to 35% degrowth in H1, with recovery unlikely in H2.
DROPPED
Non-AC segments to drive overall revenue growth
SDA, LDA, and component segments are expected to grow strongly, offsetting AC weakness and ensuring overall revenue growth over last year.
DROPPED
Haier mass production start by end-December 2025
The dedicated Haier facility is ready; mass production for ACs is planned to start by end-December 2025 or first week of January 2026.
DROPPED
Capex of ~₹450 crore planned over multiple years
Total planned capex of ~₹450 crore for Sri City, Bhiwadi, and Haier facilities; ₹175 crore already spent in H1 FY26.
NEW RISK
High channel inventory of old BEE-rated ACs
Estimated 4-4.5 million units of old BEE-rated ACs in trade inventory, which may take time to clear and impact new orders.
NEW RISK
Potential margin compression from pass-through pricing
Since margins are on a per-unit basis, percentage margins could appear lower if commodity costs are passed through without markup.
NEW RISK
Ramp-up risk in new product categories
New products like washing machines and SDA items require significant bandwidth and may not scale as expected.
RISK GONE
Weak AC demand may persist into H2
Unseasonal rains and La Nina could extend winter, dampening AC demand in Q3 and Q4, making flattish industry outlook optimistic.
RISK GONE
Working capital strain from high inventory
Inventory overhang led to increased working capital and debt; net debt stood at ~₹500 crore, and recovery may take time.
RISK GONE
Customs show-cause notice on copper tube imports
The industry faces retrospective duty demands on copper tube imports from FTA countries; outcome uncertain.
Fast read
Guidance and risk preview
Management expects AC to contribute 60-65% of total revenue, with SDA at 12-15% and components at ~20%.
Estimated 4-4.5 million units of old BEE-rated ACs in trade inventory, which may take time to clear and impact new orders.
View Risks →