1. Opening Hook
Just when investors thought Indian summers would behave normally, unseasonal rains decided to audition for villain of the year. Air-conditioner demand sulked, channel inventories ballooned, and the RAC industry went into a collective sigh. Right in the middle of this meteorological drama, EPACK Durable walked into Q3 FY26 saying, “Relax, we’ve been planning for this.”
Revenue grew, margins improved, and management spent most of the call calmly explaining why depending less on ACs is not a hobby—it’s survival. Washing machines are warming up, components are quietly flexing, and small appliances are no longer just side characters.
But don’t get comfortable yet. Commodity inflation is lurking, BEE norms rewired cost structures, and the industry is still clearing old inventory like a year-end clearance sale.
Stick around—because the real story is not Q3. It’s what EPACK is trying to become over the next three years.
2. At a Glance
- Revenue ₹427.8 cr (+13.5%) – Growth showed up despite ACs ghosting the party.
- EBITDA ₹31.7 cr (+31.5%) – Operating leverage finally clocked in on time.
- EBITDA Margin 7.41% (+102 bps) – Diversification quietly doing the heavy lifting.
- Net Profit ₹2.6 cr (+4%) – Depreciation and interest ate most of the dessert.
- AC revenue -1% YoY – Weather + inventory = seasonal heartbreak.
- Components +61% YoY – The “boring” segment stole the show.
3. Management’s Key Commentary
“EPACK is India’s second-largest ODM in room air-conditioners.”
(Still true, but now they don’t want ACs running the whole household 😏)
“Our revenue mix is becoming more balanced and customer
concentration is reducing.”
(Translation: fewer sleepless nights over top-two customers)
“Small domestic appliances grew 30% YoY.”
(Air fryers doing more work than expected 🍟)
“Components grew 61% YoY driven by PCBs, copper and plastics.”
(ODM’s secret sauce—sell parts when finished goods slow down)
“Large domestic appliances grew 74% YoY.”
(Washing machines entered the chat 🧺)
“Capex of ₹44 cr incurred in Q3, focused on washing machines and components.”
(Money is being spent where margins behave)
“AC industry degrew 25–30% earlier; now degrowth is down to ~10–12%.”
(Things are bad, but at least they’re less bad 😌)
“EBITDA margins to stabilize at 7.5–8% over the medium term.”
(No fireworks promised—just consistency)
4. Numbers Decoded
| Metric | Q3 FY26 | YoY Trend | What It Really Means |
|---|---|---|---|
| Revenue | ₹427.8 cr | +13.5% | Diversification saved the quarter |
| EBITDA | ₹31.7 cr | +31.5% | Operating leverage kicking in |
| EBITDA Margin | 7.41% | +102 bps | Mix improving, AC dependence falling |
| Net Profit | ₹2.6 cr | +4% | Finance + depreciation still heavy |
| Capex (9M FY26) | ₹218 cr | — | Expansion mode fully ON |
AC margins remain lowest; SDA, LDA and components carry better gross profiles.
5. Analyst Questions (Decoded)
- Q: How will SDA & LDA
