EPACK Durable Limited reported a 94.0% decline in net profit to ₹33 Mn for the financial year ended March 31, 2026, down from ₹551 Mn in FY25. The sharp decrease was primarily attributed to a one-time reversal of Production Linked Incentive (PLI) income amounting to ₹324.20 Mn during Q4 FY26, as the company did not achieve the prescribed incremental sales threshold. Total operating revenue for FY26 stood at ₹18,945 Mn, a decline of 12.7% year-on-year. For Q4 FY26, the company recorded a net profit of ₹0.24 Mn, a decrease of 99.9% from ₹377 Mn in Q4 FY25, with operating revenue falling 8.1% to ₹5,910 Mn.

Management attributed the profitability decline to the PLI reversal, noting that while the company met investment criteria, it fell short of the required 5x growth in incremental revenue. Consequently, the company reversed ₹32.42 crore accrued during the first nine months and did not recognize the remaining eligible amount of approximately ₹24 crore. The auditors issued a qualified opinion regarding trade receivables of ₹1,961 lakhs, which are under legal dispute, for which no provision has been recognized. The company recognized an incentive income of ₹217.74 Mn under the Rajasthan State Incentive scheme during Q4 FY26.

Segment-wise performance showed divergence during the year. The Room Air Conditioner (RAC) segment revenue decreased by 33.2% YoY to ₹10,461 Mn, impacted by unseasonal weather and channel inventory recalibration. Conversely, the Small Domestic Appliances & Large Domestic Appliances (SDA & LDA) segment grew by 34.8% YoY to ₹3,889 Mn, and the Components business scaled by 102.8% YoY to reach ₹3,663 Mn. The management noted that FY26 was a transition year impacted by weather-led demand disruption and GST rationalization.

Strategic capital investments totaling ₹2,971 Mn were made during FY26 across manufacturing locations in Dehradun, Bhiwadi, and Sri City. The company incurred a CAPEX of approximately ₹79 crore in Q4 FY26 alone, primarily towards washing machine capacity expansion and component manufacturing capabilities. The new Greenfield facility at Bhiwadi is expected to commence meaningful contribution in the coming quarters. The company's total debt level stands at around ₹700 crore, which includes a term loan of ₹200 crore.

Looking ahead, management stated that early trends for FY27 appear encouraging compared to FY26, supported by improved customer conditions and normalization in industry inventory levels. The company aims to outpace industry growth, which is currently estimated at around 15% for Q1 FY27. Management reiterated its vision to achieve a revenue target of ₹5,000 crore in the next two to three years, driven by diversification and strategic partnerships like the one with Hisense. The Hisense facility, operationalized in Q4 FY26, is expected to contribute to revenues and product mix enhancement as operations scale up.

Financial Performance Summary

Segment Revenue FY26

EPACK Durable Limited announced key management decisions during its Board meeting held on May 20, 2026. The Board approved the re-appointment of Mr. Ajay DD Singhania as Managing Director for a period of five years, effective from November 02, 2026, subject to shareholder approval. Additionally, the Board appointed Ms. Esha Gupta as Company Secretary and Compliance Officer with effect from May 20, 2026.

Board Decisions

The re-appointment of Mr. Ajay DD Singhania is contingent upon approval by the shareholders at the ensuing Annual General Meeting. His tenure as Managing Director will extend from November 02, 2026, to November 01, 2031. The Board also re-appointed M/s Cheena & Associates as Cost Auditors for the financial year 2026-27, with their remuneration subject to ratification by members.

Management Updates

Ms. Esha Gupta, a qualified Company Secretary with over 17 years of experience, has been appointed as a Key Managerial Personnel. She holds membership number A23608 and has previously worked with Hero Motors Limited and Dixon Technologies (India) Limited. Furthermore, the company reported an update in senior management personnel, noting that Mr. Shailendra Kumar, Senior General Manager – Sales & Marketing, will no longer be categorized as Senior Management Personnel due to a change in the organizational reporting structure, though he continues in his current role.