This article first appeared on GuruFocus .
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Revenue:INR427.8 crores, increased by 13.5% year-on-year.
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EBITDA:INR31.7 crores, increased by 31.5% year-on-year.
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EBITDA Margin:7.41%.
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Net Profit:INR2.6 crores, increased by 4% year-on-year.
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Net Profit Margin:Contracted by 5 basis points to 0.61%.
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Customer Base:Increased to 67 customers.
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Small Domestic Appliances Growth:30% year-on-year.
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Components Segment Growth:61% year-on-year.
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Large Domestic Appliances Growth:74% year-on-year.
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CapEx:INR44 crores in Q3 FY26.
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Release Date: January 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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EPACK Durable Ltd ( NSE:EPACK ) reported a 13.5% year-on-year increase in revenue for Q3 FY26, reaching INR427.8 crores.
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The company's EBITDA grew by 31.5% year-on-year, with an EBITDA margin of 7.41%, indicating improved operational efficiency.
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EPACK Durable Ltd successfully added two new customers during the quarter, expanding its total customer base to 67.
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The Small Domestic Appliances segment saw a 30% year-on-year growth, driven by strong demand for air fryers and other new product categories.
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The Components segment recorded a robust 61% year-on-year growth, supported by a strong order pipeline for PCBs, copper parts, and plastic molded components.
Negative Points
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Net profit margin contracted by 5 basis points to 0.61% due to higher depreciation and finance costs.
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The Room Air Conditioner (RAC) segment witnessed a marginal 1% year-on-year decline during the quarter.
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The company faces challenges from rising commodity prices, which could impact product pricing and margins.
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There is a high inventory level in the market, with approximately 4 million to 4.5 million units, which could affect future sales.
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The company anticipates a potential need for further price increases due to ongoing commodity price inflation.
Q & A Highlights
Q: As RAC now contributes less than 60% of the revenue, what specific initiatives are being taken to accelerate scale in SDA and LDA over the next 12 to 18 months? How do you see EPACK positioning itself to capture demand across Tier 2 and Tier 3 markets? A: Ajay Singhania, CEO: We are diversifying by increasing product offerings and acquiring new customers. In small domestic appliances, we've introduced air fryers and nutri blenders, with plans to add coffee makers, tower fans, and air purifiers. For large domestic appliances, we've launched fully automatic top-load washing machines and plan to introduce front-load and semi-automatic machines. This expansion will drive growth in both SDA and LDA categories.
Q: With EBIT margins improving over 100 bps year-on-year, how are you planning to balance cost efficiency with capital requirements for scaling SDA and LDA? A: Narayan Lodha, Group CFO: We deploy capital allocation diligently, monitoring costs and returns on each product. Investments are made only after product validation and customer approval. Despite portfolio expansion, our EBITDA margin is increasing, and we expect further margin improvement with scale.
Q: How do you see the overall AC industry panning out, especially with the new BEE tables and rising commodity prices? A: Bajrang Bothra, Chairman: The industry faced a 25-30% degrowth in primary sales in the first two quarters, but Q3 showed improvement. With new BEE norms, production ramp-up has started, and demand is gradually improving. The cost escalation due to BEE and commodity prices is around 8-10%. For EPACK, commodity costs are passed through, protecting margins.
Q: What is the outlook for EPACK's growth in the coming years, especially in the AC segment? A: Ajay Singhania, CEO: The AC market is expected to grow 15-20% annually over the next four to five years. EPACK aims for a 25-30% growth in AC, with even higher growth in SDA, LDA, and components. We are well-positioned to capitalize on this growth.
Q: Can you provide an update on the CapEx plans and the expected impact on growth? A: Ajay Singhania, CEO: We plan to invest INR 450 crores over the next 12-18 months, with INR 220 crores already spent in the last nine months. This investment focuses on capacity expansion, particularly in washing machines and components, and will support our diversified growth roadmap.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
