EPACK Durable Reports 106% Revenue Growth in Q2 FY27

Revenue reached INR 439 crore, while EBITDA improved to INR 7.1 crore compared to INR 0.5 crore in Q2 FY26.

Reader Takeaway: Strong revenue growth from diversification is offset by margin pressure from commodity costs and forex volatility.

What just happened

EPACK Durable posted a significant topline surge for the quarter ended September 30, 2026. The company saw robust growth in its domestic appliance segment, which expanded by 57% and now contributes 63% of total revenue. Simultaneously, the Room Air Conditioner (RAC) business recorded a 61% growth rate during the same period.

Why this matters

The company is successfully pivoting away from total reliance on its traditional RAC business. By diversifying into small and large domestic appliances, EPACK is attempting to build more sustainable revenue streams. The exit from the Epavo Electricals joint venture for INR 15 crore highlights a strategic focus on core operations and shedding non-performing assets.

The backstory

Following significant capital expenditure—INR 370 crore out of a planned INR 470 crore—the company is now focused on operational efficiency. The absence of PLI income this quarter makes the EBITDA improvement to INR 7.1 crore a notable indicator of operational recovery, as the prior year's figure included INR 8 crore in PLI incentives.

Risks to watch

Management highlighted a time lag in passing on commodity price hikes to customers, which continues to impact margins. Furthermore, exposure to USD and CNY currency fluctuations remains a risk factor. Investors should monitor how effectively the company can translate its high gross sales into consistent net profitability as it scales new production lines.

What to track next

The upcoming pilot production of Hisense-branded front-load washing machines, set for late November 2026, is a key milestone. Successful mass production following the pilot will serve as a critical indicator for future volume growth and product mix optimization.