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Epack Durable reported healthy revenue growth of ~34% YoY

ICICIdirect Research 12 Aug 2026 DISCLAIMER

News: Epack Durable reported healthy revenue growth of ~34% YoY and 50% QoQ to ₹886 crore led by recovery among summer products. RAC segment grew 44% YoY to ₹622 crore, small domestic appliances (SDA) & large domestic appliances (LDA) grew 69% YoY to ₹131 crore, components de-grew by 23% YoY to ₹85 crore. Gross profit declined by 159 bps YoY to 14.1% owing to input cost inflation amid geopolitical uncertainty however QoQ it expanded by 78 bps. EBITDA came in at ₹55 crore with EBITDA margins of 6.21% which declined 203 bps YoY (up 184 bps QoQ) as PLI is not recorded in this quarter as it changed its accounting to book it at year end. PLI adjusted EBITDA margins remained flat YoY. PAT declined 48% YoY to ₹11.8 crore.

View: Q1FY27 growth remained robust, led by strong demand for summer products and ramp-up in SDA & LDA. Importantly, Epack commenced RAC manufacturing for Hisense during the quarter, with plans to expand into washing machines and refrigerators, providing an additional growth lever going forward. We expect the growth momentum to sustain, supported by new customer additions and product ramp-ups. Adjusted EBITDA (PLI-adjusted) and PAT remained broadly flat YoY while the pace of margin recovery to be watched out. Considering its relative cheap valuation at 1x TTM price to sales vs 2-3x for peers, risk-reward seems favorable. Management commentary is awaited.

Impact: Positive

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