Epack Durable , a leading original design manufacturer (ODM) for room air conditioners and small domestic appliances in India, has unveiled ambitious growth plans aimed at doubling its production capacity by the fiscal year 2027. The company plans to establish new manufacturing plants in Sri City and Bhiwadi as part of its expansion strategy.

Expansion Strategy

The company's growth initiatives include:

• Setting up new manufacturing facilities in Sri City and Bhiwadi
• Expanding its ODM air-conditioner and small appliance manufacturing business
• Increasing export operations
• Implementing backward integration initiatives

Epack Durable expects these scale-driven expansions to potentially result in margin improvements, strengthening its market position in the consumer durables sector.

Financial Performance

While the company has announced these expansion plans, its recent financial results reflect some challenges:

The significant decline in revenue and profitability in Q2 FY26 compared to the same quarter last year underscores the importance of the company's expansion plans to drive future growth.

Segment Performance

Despite overall challenges, some segments showed promising growth:

• SDA (Small Domestic Appliances) Segment: Recorded a 45% quarter-on-quarter growth
• Component Segment: Reported a 73% quarter-on-quarter growth
• LDA (Large Domestic Appliances) Segment: Grew by 466% quarter-on-quarter

These growth areas align with the company's strategy to diversify its product portfolio and expand manufacturing capabilities.

Strategic Initiatives

Epack Durable is also focusing on:

1. New customer acquisition: Secured business with 4 new customers in Q2, with supply expected to commence from Q4 FY26
2. Component segment diversification: Entered the Energy Meter sector, expanding beyond consumer durables
3. Capital investment: Planning strategic investments across multiple locations by the end of Q1 FY26-27

Outlook

The company's expansion plans come at a crucial time, as it faces headwinds in its core air conditioner business. By diversifying its product range and expanding manufacturing capabilities, Epack Durable aims to capitalize on growth opportunities in the consumer durables market.

As the company moves forward with its expansion strategy, investors and industry observers will be keenly watching how these initiatives translate into improved financial performance and market share in the coming years.

Epack Durable Limited (EPACK), a prominent player in the consumer durables sector, has reported a significant increase in its consolidated net loss for the second quarter of fiscal year 2025-26. The company's financial performance reflects the challenges faced in a competitive market environment.

Key Financial Highlights

• Revenue Decline: EPACK's consolidated revenue from operations fell to ₹2,132.63 crore in Q2 FY26, down from ₹3,771.05 crore in the same quarter last year, marking a substantial year-over-year decrease of approximately 43.4%.

• Widened Losses: The company's consolidated net loss expanded to ₹223.00 crore, a considerable increase from the ₹85.50 crore loss reported in Q2 of the previous fiscal year.

• EBITDA Performance: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a sharp decline to ₹5.40 crore, compared to ₹96.10 crore in the corresponding quarter of the previous year.

• Margin Compression: The EBITDA margin contracted significantly to 0.25% from 2.55% year-over-year, indicating increased pressure on profitability.

Operational Overview

The company's performance this quarter reflects the challenging market conditions in the consumer durables sector. The substantial revenue decline suggests potential issues with demand or market share, which may be attributed to factors such as increased competition or changes in consumer spending patterns.

Financial Position

As of September 30, 2025, EPACK Durable's balance sheet shows:

The company maintains a paid-up equity share capital of ₹962.29 crore, with a face value of ₹10 per share.

Investor Considerations

Investors should note that the consumer durables industry often experiences seasonal fluctuations. As stated in the company's notes, "The business of the Group is seasonal in nature, hence the results for the quarter and six months ended September 30, 2025 is not fully comparable with those for the preceding period."

The company has recently incorporated new subsidiaries, including EPACK Electronic Component Private Limited and EPACK Durable Global Sales L.L.C-FZ, which may influence future performance and diversification strategies.

As EPACK Durable works to address the current challenges, investors will be watching closely for signs of recovery and the effectiveness of any turnaround strategies implemented by the management.

Note: All figures are in Indian Rupees (INR) unless otherwise stated.