Epack Durable Limited has reported a recent change in its promoter shareholding. According to a disclosure made under SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011, the company's promoters have increased their stake through open market transactions.

Key Details of the Transaction

Impact on Share Capital

The acquisition has not affected the company's total equity share capital, which remains unchanged at Rs. 96.22 crores, divided into 9.62 crore shares with a face value of Rs. 10.00 each.

Regulatory Compliance

This transaction demonstrates the promoters' adherence to regulatory requirements, as they have promptly disclosed the acquisition under the SEBI takeover regulations. Such disclosures are crucial for maintaining transparency in the stock market and keeping shareholders informed about significant changes in ownership patterns.

Market Implications

While the increase in promoter holding is relatively small, it could be viewed positively by the market as it may signal the promoters' confidence in the company's future prospects. However, investors should consider this information alongside other financial and operational metrics when making investment decisions.

As always, it's advisable for investors to conduct thorough research and consider seeking professional financial advice before making any investment choices based on such corporate actions.

Epack Durable , India's second-largest ODM for room air conditioners, reported a significant decline in revenue for Q2 FY26, primarily due to challenging market conditions in the air conditioning segment. However, the company's diversification efforts in small domestic appliances (SDA), large domestic appliances (LDA), and components showed strong momentum.

Financial Performance

The company attributed the decline in revenue to unseasonal rains and the timing gap between the GST rate reduction announcement and implementation for air conditioners (from 28% to 18%).

Segment Performance

• Room Air Conditioners (RAC): Witnessed a 76% decline quarter-on-quarter.
• Small Domestic Appliances (SDA): Grew 45% quarter-on-quarter, led by air fryers.
• Components: Saw a robust growth of 73% quarter-on-quarter.
• Large Domestic Appliances (LDA): Reported significant growth of 466% quarter-on-quarter.

Diversification and Expansion

Epack Durable is executing its strategy to diversify beyond core RAC into higher-growth categories. The company has added new products such as air fryers, coffee makers, and nutri blenders to its portfolio. New customer additions include Groupe SEB, V-Guard, Link Lock, Kirlock SLAM, Nuuk, and American Micronic.

Capex and Future Outlook

• Incurred approximately INR 129.00 crores in capex during Q2 FY26 for capacity expansion.
• The Hisense facility is ready, with mass production expected to start by the end of December or the first week of January.
• Management expects the AC industry to be flat for FY26 due to a 35% degrowth in H1 but remains optimistic about calendar year 2026 with strong order books.

Management Commentary

Ajay Singhania, Managing Director and CEO, stated, "The second quarter of FY '26 continued the muted journey for RAC with an overhang from Q1, primarily due to unseasonal rains and especially the time gap between the announcement and implementation of GST rate reduction on air conditioners from 28% to 18%."

He added, "Our focus on diversifying our overall revenue, the three pillars of small domestic appliances, components, and large domestic appliances, demonstrated strong momentum."

Investor Conference Participation

Epack Durable's senior management plans to participate in Anand Rathi's G-200 Summit-Unstoppable Bharat - Decoupled & Dominant (Flagship Annual Conference) on November 14, 2025, in Mumbai.

While the RAC segment faces challenges, Epack Durable's diversification strategy appears to be yielding positive results. The company's focus on expanding its product portfolio and customer base in non-RAC segments may help offset the impact of the sluggish air conditioner market in the short term.