News Earnings EPACK Durable Reports Strong Q3FY26 Performance with 13.5% Revenue Growth and Margin ExpansionEPACK Durable Reports Strong Q3FY26 Performance with 13.5% Revenue Growth and Margin Expansion
EPACK Durable delivered strong Q3FY26 results with revenue growing 13.5% to INR427.8 crores and EBITDA surging 31.5% to INR31.7 crores, expanding margins to 7.41%. The company's diversification strategy proved effective with Components segment growing 61% YoY, Small Domestic Appliances up 30%, and Large Domestic Appliances rising 74%, offsetting a 1% decline in AC business. The company added two new customers, bringing total base to 67, while investing INR44 crores in capacity expansion for washing machines and components at Sricity plant.
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EPACK Durable Limited showcased resilient performance in Q3FY26, delivering strong financial results despite challenging market conditions in the air conditioning industry. The company's strategic diversification initiatives and operational discipline enabled sustained growth across multiple business segments.
Financial Performance Highlights
The company reported robust financial metrics for the third quarter, demonstrating the effectiveness of its diversification strategy and operational improvements.
| Metric: | Q3 FY26 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations: | INR427.8 crores | INR376.9 crores | +13.5% |
| EBITDA: | INR31.7 crores | INR24.1 crores | +31.5% |
| EBITDA Margin: | 7.41% | 6.39% | +102 bps |
| Net Profit: | INR2.6 crores | INR2.5 crores | +4.0% |
| Net Profit Margin: | 0.61% | 0.66% | -5 bps |
The company's net profit margin contracted slightly by 5 basis points to 0.61% due to higher depreciation and finance costs, despite the overall improvement in operational performance.
Segment-wise Performance Analysis
EPACK Durable's diversification strategy delivered impressive results across non-AC segments, offsetting challenges in the core air conditioning business. The company's product business contributed 75% of total operating revenue during the quarter.
| Business Segment: | Q3 FY26 Growth (YoY) | Key Drivers |
|---|---|---|
| Air Conditioning: | -1% | Industry headwinds, inventory liquidation |
| Small Domestic Appliances: | +30% | Air fryers, nutri blenders demand |
| Large Domestic Appliances: | +74% | Washing machine ramp-up |
| Components: | +61% | PCBs, copper parts, plastic components |
The Components segment emerged as a standout performer with 61% year-on-year growth, supported by robust demand for PCBs, copper parts, and plastic molded components. This segment benefits from cross-industry applications beyond air conditioning, including electrical meters, coolers, and washing machines.
Strategic Expansion and Customer Diversification
The company successfully expanded its customer base by adding two new customers during the quarter, with supplies already commenced. This brings the total customer base to 67 for the first nine months of FY26, aligning with growth objectives and reducing concentration risk.
EPACK Durable has strategically reduced dependence on top customers from over 70% three years ago to approximately 35-40% currently. The company aims to maintain this optimal level while increasing wallet share through cross-selling diverse products to existing marquee clients.
Capital Investments and Capacity Expansion
The company maintained its commitment to strategic capital investments, incurring INR44 crores of capex in Q3FY26. These investments primarily focused on capacity expansion and equipment installation for washing machine lines and component segment at the new Sricity plant.
| Investment Focus: | Details |
|---|---|
| Q3 FY26 Capex: | INR44 crores |
| Nine-month Capex: | INR220 crores |
| Planned Investment: | INR450 crores over 12-18 months |
| Key Areas: | Washing machines, components, Hisense JV |
Additional investments at the JV facility with Hisense and the new greenfield plant in Bhiwadi are expected to commence production in coming quarters, positioning the company for future growth across multiple product categories.
Market Outlook and Industry Dynamics
Despite air conditioning industry challenges with 25-30% primary sales degrowth in the first half, the sector showed signs of recovery in Q3. The implementation of new BEE norms from January 2026 created production ramp-up opportunities, with industry players planning 15-20% growth over FY25 numbers.
The company expects commodity and BEE-related cost increases of 8-10% to be passed through to customers, maintaining margin protection while supporting industry recovery. Channel inventory levels of approximately 4-4.5 million units are expected to normalize post Q4 FY26, supporting healthier demand patterns going forward.
Historical Stock Returns for Epack Durable
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.03% | -13.82% | -20.41% | -36.63% | -51.34% | +6.91% |
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