India’s leading manufacturer of consumer durables, with strong capabilities in room air conditioners and a growing presence in small domestic appliances, is making it a player worth watching closely.
We’re talking about EPACK Durable Limited, a company engaged in the business of manufacturing consumer durable electronics, and its expertise lies in manufacturing a diverse portfolio of Room Air Conditioners (ACs) and Small Domestic Appliances (SDAs).
Additionally, the government has proposed a new two-rate GST structure of 5 percent and 18 percent, replacing the existing 12 percent and 28 percent slabs, as per sources. At present, electronics and services are taxed at 18 percent. Under the proposed system, most goods currently under the 12 percent slab would move to 5 percent, while nearly 90 percent of items from the 28 percent slab would be shifted to 18 percent. In this article, we’ll take a closer look at the company’s financial performance, management guidance, strategic diversification, and other details.
With a market cap of Rs. 3,629.5 crores, shares of EPACK Durable Limited hit an intraday high at Rs. 387.55 on Monday, up by around 7 percent on BSE, as against its previous closing price of Rs. 363.15. The stock has delivered positive returns of nearly 54 percent over a one-year period, as well as over 8 percent returns in the last six months.
Strategic Diversification Update
In line with its strategy to scale and diversify, EPACK Durable expanded its components segment during the quarter by entering the energy meter sector through the supply of critical components. This strategic move marks a step beyond the consumer durables space, designed to reduce concentration risk and tap into adjacent, high-growth industries. The company considers this diversification a long-term growth driver, strengthening its portfolio and creating new opportunities across multiple sectors.
Financial & Segment Performance
In Q1 FY26, EPACK Durable reported a consolidated revenue from operations of Rs. 662.4 crores, a marginal growth of around 3 percent QoQ but a decline of about 14 percent YoY. Meanwhile, its net profit for the quarter stood at Rs. 22.8 crores, representing a fall of nearly 40 percent QoQ and 3 percent YoY.
The first quarter was a bit subdued due to headwinds in the market, primarily driven by unseasonal rains and surplus finished goods inventory in the industry carried over from Q4 FY25. Between FY22 and FY25, revenue grew at a 3-year CAGR of around 33 percent, while the net profit surged at a CAGR of nearly 48 percent over the same period.
In Q1, the company’s Room Air Conditioner (RAC) business recorded a 34 percent YoY decline, primarily due to suboptimal seasonal demand arising from unseasonal rains and elevated channel inventory carried over from Q4 FY25.
Small Domestic Appliances (SDA) segment delivered 16 percent YoY growth, supported by robust order inflows and encouraging preseason demand, particularly for air fryers.
Large Domestic Appliances (LDA) – comprising washing machines and air coolers – grew 29 percent YoY, driven by an expanding customer base and successful new product launches. Meanwhile, the Components segment posted steady growth of 5-6 percent YoY, underpinned by a healthy order pipeline for printed circuit boards (PCBs), copper parts, and plastic molded components.
Notably, the product business accounted for 77 percent of total operating revenue in the quarter, underscoring strong market adoption and reaffirming customer confidence in the company’s core portfolio.
Management Guidance & Capex
For FY26, management has guided to an EBITDA margin of 7.5 percent or higher, with a medium-term target of 8 percent, supported by a growing contribution from higher-margin segments such as components, SDA, and LDA.
The company also aims to diversify its product sales mix while sustaining growth across all categories. The expected revenue mix for FY26 is RAC at 60-65 percent, SDA at 10-15 percent, components at 20-25 percent, and LDA up to 10 percent, with further scaling anticipated.
Looking ahead, the company remains committed to delivering 30-35 percent topline growth while maintaining profitability, reiterating confidence that the overall outlook for the year remains intact.
Management expects the RAC industry to return to growth in FY26 with an estimated 10-15 percent increase for the year, and continues to see a strong long-term trajectory of over 20 percent CAGR in the next four to five years.
During Q1, capex stood at around Rs. 50 crore, primarily directed towards expanding the washing machine line, enhancing component capabilities at Sri City, and building infrastructure for the Hisense JV and a new greenfield plant in Bhiwadi. For the full year, total capex guidance is expected in the range of Rs. 450-500 crore, including the capex at subsidiary levels.
Written by Shivani Singh
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