EPACK Durable LimitedConsumer GoodsEPACK
Q1 FY27 earnings callEPACK Durable Limited
EPACK delivered record quarterly revenue of INR 886 Cr, up 34% YoY, driven by strong growth in its core RAC business and a 68% surge in small and large domestic appliances as its diversification strategy gains traction.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations | INR 886 crores | 34% | |
| EBITDA | INR 55 crores | 0.70% | |
| EBITDA Margin | 6.21% | — | |
| Net Profit | INR 11.8 crores | — | |
| RAC Growth (YoY) | 44% | — | |
| SDA/LDA Growth (YoY) | 68% | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹376.84 Cr+35% YoY-0.1% QoQ | ₹2.51 Cr-48.7% YoYTurned profitable QoQ | ₹0.26-58.1% YoYTurned positive QoQ |
| Q2 FY25 | ₹377.10 Cr— YoY-51.3% QoQ | ₹-8.49 Cr— YoYTurned loss-making QoQ | ₹-0.89— YoYTurned negative QoQ |
| Q1 FY25 | ₹773.68 Cr— YoY+47.2% QoQ | ₹23.41 Cr— YoY-15.9% QoQ | ₹2.44— YoY-20.8% QoQ |
| Q4 FY24 | ₹525.70 Cr— YoY+88.4% QoQ | ₹27.83 Cr— YoY+469.1% QoQ | ₹3.08— YoY+396.8% QoQ |
| Q3 FY24 | ₹279.06 Cr— YoY— QoQ | ₹4.89 Cr— YoY— QoQ | ₹0.62— YoY— QoQ |
TL;DR
- Revenue hit a quarterly high of INR 886 Cr, growing 34% YoY.
- RAC business grew 44% YoY (30% volume, 14% value).
- SDA/LDA business grew 68% YoY, now serving 72+ customers across 19 product categories.
- EBITDA margin was 6.21%; excluding prior-year PLI, underlying margin improved ~15 bps.
- Management focuses on scaling higher-margin categories and converting scale into operating leverage.
- Partnership with Hisense contributed INR 65 Cr revenue in Q1 from ACs; washing machine production to ramp up.
Said on the call
“We are winning share, scaling the top line strongly and near-term profitability is being held back by the investment cycle and increase in input costs rather than by weakening in demand or competitiveness.”
From the Q&A
| Topic | What management said |
|---|---|
| Margin Pressure & Outlook | Management attributed margin pressure to forex losses (~INR 6-7 Cr) and higher depreciation/finance costs from new capacities; they aim to rebuild margins by reversing PLI discounts shared with customers by year-end. |
| RAC Growth Breakdown | The 44% RAC growth comprised ~30% volume growth and 12-15% value growth from price pass-through; most commodity price increases have been passed on, with forex being a key recent impact. |
| Inventory & Working Capital | AC trade inventory is at a comfortable multi-year low (~3.5-4 million units). Company working capital days are ~50-60, with focus on normalizing elevated inventory levels built due to regulatory (BIS) changes. |
| Capacity Utilization & Capex | Dehradun and Bhiwadi plants utilized at >85% in Q1; Sri City utilization improved to ~50%. Total planned capex is ~INR 450 Cr, with ~INR 340-350 Cr already spent and ~INR 60-70 Cr remaining for FY27. |
| Hisense Partnership & Non-AC Ramp-up | Hisense contributed ~INR 65 Cr revenue in Q1 (35,000 ACs). Front-load washing machine pilot production with Hisense is on track for end of October. The partnership is expected to drive significant growth. |
| Path to Profitability in Weak Quarters | Management acknowledged Q2 and Q3 have historically been loss-making due to AC seasonality. The ramp-up of SDA/LDA (like washing machines) aims to reduce this seasonality, with a target to stabilize over the next 4-6 quarters. |
Guidance
- Aiming to reverse the PLI discount passed to brand customers completely by the end of FY27.
- Targeting overall plant utilization (all three plants) to exceed 60% for FY27.
- Expect the AC industry to grow ~20% in FY27, with EPACK aiming to surpass that rate.
- Planning to add more customers and product lines, targeting ~75 customers and 20 product lines by year-end.
- Cumulative revenue from the Hisense partnership is expected to be INR 8,000 crores over five years.
Source
Summary written from the transcript filed by EPACK Durable Limited for the call held on 12 Aug 2026; published 21 Aug 2026, 20:09 IST.