Shares of EPACK Durable Ltd. jumped 7.62% on Thursday following the announcement of significant government incentives for its Bhiwadi manufacturing facility. According to reports from CNBC TV18, the stock is retesting its IPO price of ₹230, having made an intraday low of ₹233 on Thursday. The stock, which made its market debut in January 2024, is currently trading at ₹240, down 7.4% for the day.
The company received Entitlement Certificates from the Government of Rajasthan under the Rajasthan Investment Promotion Scheme (RIPS-2024) for its Bhiwadi manufacturing facility. Under the approved incentives, EPACK Durable will receive a turnover-linked incentive at an effective rate of 1.32% of eligible net sales turnover for 10 years. The package also includes 100% electricity duty exemption for seven years and reimbursement of 50% of eligible skilling and training expenditure. The incentives are applicable for the company's Bhiwadi facility with effect from 15 February 2022 and are subject to scheme provisions, annual ceilings and claim approvals.
The company reported a significant deterioration in financial performance for the quarter ended March 2026. As reported by CNBC TV18, revenue declined by 8% to ₹591 crore compared to the same period last year, while profits shrunk to as low as ₹2 lakh from ₹37.7 crore in the previous year. Earnings Before Interest, Tax, Depreciation and Amortisation fell 64% to ₹25.8 crore, with margins narrowing to 4.4% from 11.2% a year earlier. The company's net profit dropped by 70% to ₹17.6 crore from ₹58.2 crore in the corresponding quarter of the previous financial year.
The company's business mix has undergone significant transformation, with the Non-AC portfolio contribution increasing from 20% in financial year 2023 to 42% in financial year 2026. As reported by CNBC TV18, AC sales were down 25% in the March quarter and declined by 33% for the full year, primarily due to temporary demand softness and market normalization. However, the LDA and SDA segment grew by 32% for the quarter and 35% for the year, while the components business grew 50% during the quarter and 102% for the full year. The RAC business still contributed 58% to the overall topline for the full year.
According to CNBC TV18, the management highlighted encouraging demand for air fryers and indicated the company is gaining good traction with customers in this segment. The company's diversification strategy appears to be showing results in non-AC segments, though the overall financial performance remains under pressure from the traditional AC business challenges. The latest government incentives provide additional support for the company's expansion plans and operational efficiency.
