Remember when AC makers blamed the weather gods for everything? EPACK took it up a notch — this time,monsoon overstay,GST cuts, andBEE rating upgradesall shared the blame. The company’s CEO could well be writing the sequel toThe Perfect Storm, except it’s about inventory piles and dead summers. But hold on — while ACs chilled out, air fryers and vacuum cleaners were busy saving the day. Read on, it gets spicier (and a bit smokier).
At a Glance
- Revenue ₹213 cr –Down 43% QoQ. That’s not a drop; that’s a cliff dive.
- EBITDA ₹0.5 cr –Down 95%. The margin evaporated faster than summer demand.
- Net Loss ₹22 cr –Red ink replacing cool breeze.
- H1 Revenue ₹876 cr –Down 24% YoY. Even the CFO looked hot under the collar.
- SDA up 45% QoQ –Air fryers turned into unexpected heroes.
- Components up 73% –Screws, sheets, and wires doing the heavy lifting.
Management’s Key Commentary
“Muted quarter due to unseasonal rains and GST confusion.”(Translation: Nature and taxmen teamed up against us.)🌧️
“RAC volumes dropped 76% QoQ, but other segments showed strong growth.”(The house burned down, but the kitchen blender survived.)
“Post-GST cut, channel inventories finally started moving.”(A brief festival miracle before reality hit again.)
“Capex of ₹129 cr this quarter toward expansion and Hisense facility.”(Because nothing says ‘tough quarter’ like building new factories.)
“Expect a strong rebound in H2 as festive demand and lower GST kick in.”(Faith, not data, fuels optimism here.)
“We’re diversifying into small appliances and components.”(When in doubt, make coffee makers and vacuum cleaners.)☕
“Calendar year 2026 looks promising.”(Next year will be great — famous last words of every CEO ever.)
Numbers Decoded
| Metric | Q2FY26 | QoQ / YoY | Comment |
|---|---|---|---|
| Revenue from Ops | ₹213 cr | -43% QoQ | GST confusion + bad weather = meltdown. |
| EBITDA | ₹0.5 cr | -95% QoQ | Barely breathing; margin at 0.23%. |
| PAT / (Loss) | -₹22 cr | — | Summer didn’t come; profits didn’t either. |
| H1 Revenue | ₹876 cr | -24% YoY | Industry-wide chill. |
| H1 EBITDA | ₹56 cr | -8% YoY | Surviving on diversification. |
| Capex | ₹129 cr | — | Still building factories mid-slog. |
| Net Debt | ₹500 cr | — | Cash flow gone with the wind. |
| Working Capital Days | Up sharply | — | Inventory doing yoga in warehouses. |
| RAC Segment | -76% QoQ | — | Frostbite level damage. |
| SDA Segment | +45% QoQ | — | Air fryers hot, literally and financially. |
| Components | +73% QoQ | — | The only thing assembling profits. |
| LDA Segment | +466% QoQ | — | Looks big till you see the tiny base. |
(Imagine an AC company powered by coffee makers. That’s 2025 in one line.)
Analyst Questions
Q:What’s your FY26 guidance now?A:“Flattish.” (Corporate speak for:We gave up halfway through Excel modeling.)
Q:How’s the Hisense plant doing?A:Ready for trial production; real output starts January. (Hope it’s cooler by then.)
Q:SDA is growing — what’s driving it?A:Air fryers, vacuum cleaners, coffee makers. (Basically, everything except ACs.)
Q:Working capital’s ballooned — why?A:Because our goods didn’t move, but payments did. (Ouch.)
Q:Any PLI updates?A:ECMS projects coming — audio parts, electronic components, and maybe camera modules. (Government cash, please keep flowing.)
Q:What’s your debt?A:₹500 crore net. (It’s not “leveraged” if you call it “strategic.”)
Guidance & Outlook
Management expects the industry to
