Epack Durable Ltd (EPACK)
🎯 Key Takeaways
- EPACK Durable is in a strategic transition phase, shifting from reliance on the RAC segment toward higher-margin SDA/LDA products amid declining profitability in its core business. Despite strong top-line growth in Q1 FY27, profitability remains under pressure due to margin compression and rising costs, with management betting on scale and product diversification to drive future margin recovery.
- Revenue grew 49.9% QoQ to ₹886 in Q1FY27.
- ⚠️ Persistent margin compression despite revenue growth — EBITDA margin has declined 203 bps YoY and net profit margin by 213 bps, with no clear inflecti
📖 The Story
EPACK Durable is in a strategic transition phase, shifting from reliance on the RAC segment toward higher-margin SDA/LDA products amid declining profitability in its core business. Despite strong top-line growth in Q1 FY27, profitability remains under pressure due to margin compression and rising costs, with management betting on scale and product diversification to drive future margin recovery.
📰 What's Happening
In Q1 FY27, EPACK Durable achieved a record revenue of ₹8,860 Mn, up 33.8% YoY, driven by 43.8% growth in RAC and 68.9% growth in SDA & LDA segments. However, EBITDA margin declined 203 bps to 6.21% and PAT fell 48.5% YoY to ₹118 Mn due to input cost pressures, higher depreciation (+30.7%), and finance costs (+27%). The company is executing a ₹4,700 Mn strategic capex program to boost backward integration and capacity, with ₹102 Mn spent in Q1 FY27. Management reaffirmed confidence in long-term growth and margin recovery through scale and new product launches, while continuing diversification into non-RAC categories.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 213 | 428 | 591 | 886 |
| Operating Profit | -13 | 18 | 12 | 38 |
| OPM % | -6.1% | 4.2% | 2.0% | 4.3% |
| Net Profit | -22 | 3 | 0 | 12 |
| EPS | ₹-2.32 | ₹0.27 | ₹0.00 | ₹1.23 |
The company's financial trajectory shows a clear inflection point: revenue growth is accelerating (33.8% YoY in Q1 FY27), but profitability is being deliberately suppressed by aggressive reinvestment and cost pressures. Quarterly operating margins remain volatile — 4.3% in June 2026 but negative in September 2025 — indicating operational instability despite top-line gains. The consistent rise in depreciation and finance costs, coupled with declining net profit margins, suggests that current investments are capital-intensive and not yet yielding returns. Management attributes this to a deliberate phase of scaling non-RAC segments and reducing customer concentration, which is reflected in the balance sheet's growing asset base and capex spend.
🔮 Management Outlook & What's Next
Management explicitly stated that margin recovery will be achieved through scale and new product launches in the upcoming quarters, signaling confidence in the ongoing diversification strategy. They highlighted broad-based momentum across the portfolio and reaffirmed long-term growth confidence despite near-term margin pressure. The ₹4,700 Mn capex program is positioned as a foundational investment to reduce dependency on RAC and build sustainable margins, with no indication of immediate profitability improvement — only a forward-looking commitment to structural transformation.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 96 | 96 | 96 | 96 |
| Reserves | 815 | 856 | 861 | 864 |
| Borrowings | 488 | 370 | 724 | 739 |
| Total Liabilities | 1,784 | 2,013 | 2,016 | 2,506 |
| Fixed Assets | 673 | 691 | 744 | 908 |
| Investments | 22 | 20 | 18 | 12 |
| Total Assets | 1,784 | 2,013 | 2,016 | 2,506 |
The balance sheet reveals a company actively investing in structural transformation: total assets grew from ₹2,013 Cr in FY25 to ₹2,506 Cr in Mar 2026, driven by rising borrowings (₹739 Cr as of Mar 2026 vs ₹370 Cr in FY25) and equity reserves. While debt has increased, it is still modest at a D/E of 0.39, suggesting financing is being used for growth, not distress. Equity remains stable at ₹96 Cr, but reserves have risen to ₹864 Cr, indicating retained earnings are being reinvested rather than distributed. The ₹4,700 Mn capex program is being funded through a mix of internal cash flow and debt, signaling a deliberate shift from passive growth to active capacity building.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +31 |
| Investing | -95 |
| Financing | -29 |
| Net Cash Flow | -93 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 47.9% | 47.2% | 47.2% | 46.5% |
| FII | 1.5% | 0.3% | 0.3% | 0.3% |
| DII | 5.9% | 7.1% | 6.6% | 5.3% |
| Public | 31.1% | 32.5% | 32.5% | 34.8% |
| # Shareholders | 1,32,719 | 1,35,977 | 1,30,580 | 1,37,211 |
Institutional interest is rising, with FII holdings increasing from 0.26% in Q3FY26 to 0.34% in Q1FY27, and DII growing from 6.57% to 7.06% over the same period, indicating growing confidence among sophisticated investors. Promoter holding remains stable at ~47%, with no signs of dilution or sell-down. The sharp rise in public shareholders (from 31.15% to 34.77% in Q1FY27) and the large base of 1,37,211 shareholders suggest retail interest is expanding, possibly driven by ESG positioning and retail investor engagement via digital platforms.
⚖️ Peer Comparison — Consumer Durables
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| LGEINDIA | 1.15 L Cr | 63.1 | 33.0% | 23.8% | 0.00 |
| DIXON | 89,949 | 42.8 | 84.1% | 69.2% | 0.07 |
| HAVELLS | 77,109 | 47.2 | 22.9% | 17.3% | 0.00 |
| VOLTAS | 39,706 | 88.4 | 9.9% | 6.9% | 0.15 |
| BLUESTARCO | 30,172 | 59.3 | 18.7% | 15.0% | 0.18 |
| AMBER | 26,892 | 279.5 | 12.6% | 5.4% | 0.85 |
| KAYNES | 24,676 | 71.3 | 16.7% | 12.2% | 0.31 |
| PGEL | 16,496 | 80.1 | 11.7% | 7.2% | 0.11 |
| AVALON | 15,809 | 118.2 | 26.3% | 21.9% | 0.23 |
| CROMPTON | 15,132 | — | -0.7% | -7.2% | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent margin compression despite revenue growth — EBITDA margin has declined 203 bps YoY and net profit margin by 213 bps, with no clear inflection point yet. 2. High customer concentration risk has reduced from 72% to 37% for top-2 customers, but RAC still contributes 58% of revenue, making the business vulnerable to segment-specific downturns. 3. Rising finance costs (+27% YoY) and depreciation (+30.7%) are eroding profitability, suggesting capital intensity may outpace returns in the near term. 4. No visible path to profitability improvement in FY27 guidance — management only projects recovery 'in upcoming quarters' without specifying timing or metrics, leaving execution risk unquantified.
📋 Recent Filings
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🟡 sustainability report 27 August 2026EPACK Durable Limited submitted its Business Responsibility and Sustainability Report for FY 2025-26 to BSE and NSE on August 26, 2026, as mandated un...
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🔴 annual report 27 August 2026EPACK Durable Limited reported FY2025-26 revenue of ₹18,945 million, down 12.7% YoY, with EBITDA at ₹1,139 million (6.01% margin) and net profit of ₹3...
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🔴 annual report 27 August 2026Epack Durable Limited announced the web-link and access path for its 7th AGM notice and FY2025-26 annual report, directing shareholders to download do...
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Announcement 18 August 2026EPACK Durable reported 34% YoY revenue growth to INR 886 crores in Q1 FY27, driven by strong domestic demand and strategic expansion into higher-margi...
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Announcement 12 August 2026EPACK Durable Limited announced that the audio recording of its investor conference call discussing Q1 FY2026 standalone and consolidated unaudited fi...
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🟡 Board Meeting 12 August 2026EPACK Durable Limited announced the re-appointment of Deloitte Haskins & Sells as statutory auditors for a second consecutive five-year term, effectiv...
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🔴 Financial Results 12 August 2026EPACK Durable reported record quarterly revenue of ₹8,860 Mn in Q1 FY27, up 33.8% YoY, driven by 43.8% growth in RAC and 68.9% growth in SDA & LDA seg...
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🔴 Financial Results 11 August 2026EPACK Durable Limited reported consolidated revenue of **₹8,860 crores** for Q1 FY27, up **33.8% YoY**, driven by strong growth in RAC and SDA/LDA seg...
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🔴 Financial Results 11 August 2026EPACK Durable reported record quarterly revenue of ₹8,860 Mn in Q1 FY27, up 33.8% YoY, driven by strong RAC and SDA/LDA growth, but EBITDA margin fell...
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🟡 Board Meeting 11 August 2026EPACK Durable Limited announced the outcome of its August 11, 2026 board meeting, approving unaudited standalone and consolidated financial results fo...
🧠 Analyst's Read
EPACK Durable is undergoing a high-stakes strategic pivot from a mature RAC-dependent business to a more diversified, potentially higher-margin portfolio, but profitability remains suppressed by investment cycles. The next 6–12 months will be critical to determine whether scale and new product launches can translate into sustainable margins — investors should watch for margin guidance updates, segment-wise profitability trends, and progress in reducing RAC dependency beyond current levels.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
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This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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