01 — At a Glance
The AC Manufacturer That Can’t Keep Its Stock Cool
- 52-Week High / Low₹421 / ₹216
- Q3 FY26 Revenue₹428 Cr
- Q3 FY26 PAT₹2.59 Cr
- Q3 EPS₹0.27
- Annualised EPS (Q3 × 4)₹1.08
- Book Value / Share₹99.4
- Price to Book2.26x
- Gross NPA~0%
- Debt₹724 Cr
- Equity₹952 Cr
Flash Summary: EPACK just delivered Q3 FY26 revenue of ₹428 crore — up 13.5% YoY — and EBITDA jumped 31.5% to ₹31.7 crore. But the stock is down 35.9% in 6 months, trading at 52.9x P/E on annualised earnings. The company manufactures air conditioners with the efficiency of a window AC in summer heatwave — technically it works, but everything feels hot, contested and confused. And it’s paying zero dividend to console the suffering shareholder.
02 — Introduction
Making Other People’s Air Conditioners, Minus the Respect
Imagine this: you’re Voltas. You want to make air conditioners. But you don’t want to build factories, hire engineers, or deal with manufacturing headaches. So you call EPACK and say, “Build these for us, and we’ll slap our brand on it.” That’s contract manufacturing. EPACK is the invisible hand that keeps millions of Indian families cool every summer — and gets absolutely none of the brand love for it.
Founded in 2003, EPACK Durable Limited is India’s second-largest room air conditioner ODM (Original Design Manufacturer), with 24% market share in H1 FY25. They manufacture complete room ACs, small appliances like induction cooktops and mixer grinders, and components like heat exchangers and copper tubing. Their customers? Blue Star, Voltas, Haier, Havells, Godrej, Whirlpool, Philips. The who’s-who of Indian consumer durables. And yet, most Indians have never heard the name EPACK.
Q3 FY26 was supposed to be triumphant. Revenue grew 13.5% YoY to ₹428 crore. EBITDA soared 31.5% to ₹31.7 crore. But PAT barely budged — just ₹2.59 crore, up 4% YoY. The reason? Finance costs and depreciation hit hard. The company is in full capex mode, building new factories in Sri City (₹30 million investment, commissioned Feb 2026) and Bhiwadi, getting ready for a Hisense JV that launches in Q4 FY26. All while the RAC segment itself had negative growth in Q3. Welcome to the paradox of growth through pain.
ICRA Rating (Jan 2026): A (Stable) / A2+ — reaffirmed and upgraded borrowing limits to ₹1,369.58 crore from ₹1,243.11 crore. The rating agency clearly believes in EPACK’s trajectory. Investors? They seem to be betting the opposite. The 35.9% 6-month decline tells you all you need to know about mood swings in the Indian market.
03 — Business Model: WTF Do They Even Do?
You Make Voltas, We Build It. You Take Credit, We Take Debt.
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