EPACK Durable has reported a challenging FY26 with revenue falling to Rs 1,894.46 crore and profit dropping to Rs 3.3 crore, impacted by industry headwinds and the reversal of PLI incentives. The company has scheduled its 7th AGM for September 18, 2026, while shareholders remain focused on a qualified auditor opinion regarding Rs 19.61 crore in disputed receivables.
EPACK Durable FY26 Results and AGM Announcement
Revenue: Rs 1,894.46 crore | PAT: Rs 3.3 crore
Reader Takeaway: Expansion efforts continue despite significant profit margin compression and a new material auditor qualification concern.
What just happened
EPACK Durable Limited has released its FY26 annual results and announced its 7th Annual General Meeting, scheduled for September 18, 2026. The company faced a difficult fiscal year, with revenue declining 12.7% year-on-year to Rs 1,894.46 crore. Profit After Tax (PAT) saw a sharp decline to Rs 3.3 crore compared to Rs 55.1 crore in the previous year.
Why this matters
The bottom-line performance was hindered by a confluence of industry-wide factors, including unseasonal weather affecting Room Air Conditioner demand and inventory adjustments. Additionally, the company recorded a reversal of Rs 32.42 crore in previously recognized PLI income, though this was partially offset by a Rs 21.77 crore incentive under the RIPS 2024 scheme.
Auditor Observations
The statutory auditor has issued a qualified opinion concerning Rs 19.61 crore in disputed trade receivables. The auditor stated there is insufficient evidence to confirm the recoverability of these funds, noting that adjustments to the carrying amount or expected credit loss provisions may be necessary, impacting overall equity.
Business and Operational Update
Despite financial pressures, the company pushed forward with capital projects, investing Rs 297.1 crore in a new greenfield facility in Bhiwadi and a Hisense-dedicated facility in Sri City. EPACK is actively diversifying into the energy meter component and smart audio device markets to reduce reliance on core RAC operations.
Risks to watch
Investors should monitor the rising working capital cycle, which increased to 91 days from 57 days in FY25. The material auditor qualification regarding trade receivables remains a primary risk to asset quality. Margin pressure remains a persistent concern as the company navigates a competitive and regulatory-sensitive appliance market.
What to track next
Shareholders should monitor the upcoming 7th AGM proceedings for clarity on the resolution of the disputed receivables and management's strategy to restore profitability in FY27.