Epack durable Limited has received a significant boost to its manufacturing operations with the receipt of Phase III incentive under the government's electronics manufacturing promotion scheme. The company announced this development through a regulatory filing dated February 06, 2026.

Government Incentive Details

The company has been awarded Phase III incentive of ₹7.36 crore under the Modified Special Incentive Package Scheme (M-SIPS) administered by the Ministry of IT & Electronics, Government of India. This scheme is specifically designed to promote electronics manufacturing in the country and supports the government's strategic initiatives.

Scheme Structure and Alignment

The M-SIPS scheme offers incentives in three phases for investments in capital expenditure for setting up electronic manufacturing units. EPACK Durable had applied and invested in the scheme to align with the Government of India's vision of "Make in India" and "Aatamnirbhar Bharat".

The scheme represents the government's commitment to:

• Promoting domestic electronics manufacturing
• Reducing import dependency
• Creating employment opportunities in the electronics sector
• Supporting the "Make in India" initiative

Regulatory Compliance

The announcement was made through a disclosure under Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. The communication was addressed to both BSE Limited and National Stock Exchange of India Limited, where the company's shares are listed.

The company has also committed to posting a copy of this disclosure on its official website at www.epackdurable.com , ensuring transparency and accessibility for all stakeholders. This incentive receipt marks a significant milestone in EPACK Durable's journey toward expanding its electronics manufacturing capabilities under government support schemes.

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.

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.

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.

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.