EPACK Durable Ltd (NSE:EPACK) Q4 2026 Earnings Call Highlights: Navigating Challenges with ...

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• Q4 Revenue:INR591 crores, declined by 8% year-on-year.

• Q4 EBITDA:INR25.8 crores, decreased by 64.2% year-on-year.

• Q4 EBITDA Margin:4.37%, down from 11.21%.

• Q4 Net Profit:INR2.4 lakhs.

• FY26 Revenue:INR1,894 crores, declined by 12.7% year-on-year.

• FY26 EBITDA:INR113.9 crores, decreased by 27.7% year-on-year.

• FY26 EBITDA Margin:6.01%, down from 7.26%.

• FY26 Net Profit:INR3.3 crores.

• Incentive Income:INR21.78 crores recognized under the risk 2024 scheme in Q4.

• PLI Income Reversal:INR32.42 crores reversed in Q4.

• Customer Base:Added 5 new customers in Q4, total active customer base at 72.

• RAC Segment Decline:Approximately 25% year-on-year decline in Q4.

• Component Business Growth:Approximately 50% year-on-year growth in Q4.

• CapEx in Q4:INR79 crores, primarily for washing machine capacity expansion and components manufacturing.

• Warning! GuruFocus has detected 5 Warning Signs with NSE:EPACK.

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Release Date: May 21, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• EPACK Durable Ltd ( NSE:EPACK ) added five new customers in Q4 FY26, bringing the total customer additions to 17 for the year, reflecting strengthened customer relationships and reduced concentration risk.

• The company's SDA and LDA component business demonstrated robust growth, supported by healthy order inflows across both existing and newly launched products.

• EPACK Durable Ltd's component business delivered approximately 50% year-on-year growth, driven by increasing localization requirements and deeper customer integration.

• Investments in strategic capacity expansion and localization initiatives are expected to support long-term growth, with a CapEx of INR79 crores incurred in Q4 FY26.

• The partnership with Hisense through EPACK Manufacturing Technologies Limited became operational in Q4 FY26, marking a significant milestone in the company's manufacturing expansion journey.

Negative Points

• Revenue from operations declined by 8% year-on-year in Q4 FY26, and by 12.7% for the full financial year.

• EBITDA for Q4 FY26 decreased by 64.2% year-on-year, with the EBITDA margin dropping from 11.21% to 4.37%.

• The company reversed previously recognized PLI income amounting to INR32.42 crores due to evolving assessments and ongoing procedural reviews.

• Net profit for Q4 FY26 was only INR2.4 lakhs, indicating significant profitability challenges.

• The room air conditioning (RAC) segment faced temporary pressure due to revised BEE norms, uneven seasonal uptake, and elevated inventory levels, impacting industry-wide profitability.