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.

Epack Durable Limited , a prominent player in the consumer durables sector, has announced the conclusion of search proceedings conducted by the Additional Commissioner of State Tax at its Uttarakhand unit. The company, which faced scrutiny from tax authorities, has emerged from the process with no immediate financial implications beyond precautionary tax deposits.

Search Proceedings Details

The search operation, which commenced on August 29 at the company's Dehradun location, was peacefully concluded on August 30. Epack Durable has reported that no allegations were proven during the search, and the tax authority issued an order for the peaceful completion of the proceedings.

Seized Items and Precautionary Measures

As part of the search operation, the tax authorities seized:

• Two units of goods
• Three registers for general reference purposes

In a proactive move, Epack Durable made a precautionary deposit of ₹50.00 lakh, equally split between CGST and SGST taxes. However, the company emphasized that this amount is not yet confirmed as due and plans to file for a refund in due course.

Financial Impact and Company Statement

Epack Durable has stated that beyond the precautionary tax deposit, no other financial impact is quantifiable at this stage. The company's disclosure, made in compliance with SEBI regulations, indicates that the search was conducted due to an "apprehension of contravention of the provisions of the Act."

Jyoti Verma, Company Secretary & Compliance Officer of Epack Durable, confirmed the conclusion of the search proceedings in a filing to the stock exchanges. The company has assured stakeholders that it will keep them informed of any significant developments related to this matter.

Market Implications

While the immediate financial impact appears limited, investors and market analysts will likely monitor the situation closely for any potential long-term implications on Epack Durable's operations or financial standing. The company's transparent communication about the search proceedings may help in maintaining investor confidence during this period of regulatory scrutiny.

As the situation develops, Epack Durable is expected to provide further updates on any material changes or outcomes resulting from these tax proceedings.