Please find enclosed Press Release on the Unaudited Standalone & Consolidated Financial Results for the Quarter and Half Year ended September 30, 2025
EPACK · price
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EPACK Durable reported weak Q2 FY26 results with consolidated revenue of INR 2,133 Mn, down 43.4% QoQ. EBITDA collapsed to just INR 5 Mn (margin 0.23%, down 232 bps QoQ) and net profit margin turned negative at -10.41%. The sharp fall was driven by the Room Air Conditioner (RAC) segment, which declined 76% QoQ due to unseasonal rains and a gap between the GST rate cut announcement (28% to 18%) and its implementation, which left excess inventory. However, demand rebounded strongly post-GST cut and festive season. Small Domestic Appliances grew 45% QoQ, Components grew 73% QoQ, and Large Domestic Appliances surged 466% YoY. The company added 4 new customers and remains confident of meeting full-year targets, supported by capacity expansion including the upcoming Sri City Hisense plant.
Short-term sentiment is likely negative given the steep QoQ revenue drop and near-zero EBITDA in RAC, the company's core segment. However, the GST-driven demand recovery, strong growth in non-RAC segments, new customer wins, and management's confidence in meeting full-year targets may provide support for the stock.