EPACK Durable Limited reported robust financial results for Q3FY26, with revenue from operations growing 13.5% to ₹427.8 crore compared to ₹376.9 crore in Q3FY25. The company's EBITDA surged 31.5% to ₹31.7 crore from ₹24.1 crore in the previous year, while EBITDA margin expanded by 102 basis points to 7.41% from 6.39%. Net profit increased marginally by 4% to ₹2.6 crore, though net profit margin contracted slightly by 5 basis points to 0.61% due to higher depreciation and finance costs. According to company reports, the strong performance was driven by strategic diversification initiatives and operational discipline despite challenging market conditions in the air conditioning industry.
The company's diversification strategy showed impressive results across non-AC segments, with the product business contributing 75% of total operating revenue during the quarter. According to segment-wise performance data, the Components segment emerged as the standout performer with 61% year-on-year growth, supported by robust demand for PCBs, copper parts, and plastic molded components. The Small Domestic Appliances segment grew 30% driven by air fryers and nutri blenders demand, while Large Domestic Appliances surged 74% due to washing machine ramp-up. In contrast, the Air Conditioning segment declined 1% due to industry headwinds and inventory liquidation challenges.
EPACK Durable successfully expanded its customer base by adding two new customers during the quarter, with supplies already commenced. As reported by the company, this brings the total customer base to 67 for the first nine months of FY26, aligning with growth objectives and reducing concentration risk. The company has strategically reduced dependence on top customers from over 70% three years ago to approximately 35-40% currently, with plans to maintain this optimal level while increasing wallet share through cross-selling diverse products to existing marquee clients.
The company maintained its commitment to strategic growth with capex of ₹44 crore in Q3FY26, bringing nine-month capex to ₹220 crore. According to company reports, these investments primarily focused on capacity expansion and equipment installation for washing machine lines and component segment at the new Sricity plant. The company has planned total investment of ₹450 crore over 12-18 months, with additional investments at the JV facility with Hisense and the new greenfield plant in Bhiwadi expected to commence production in coming quarters, positioning the company for future growth across multiple product categories.
Despite air conditioning industry challenges with 25-30% primary sales degrowth in the first half, the sector showed signs of recovery in Q3. As reported by industry data, 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.
