EPACK Durable Reports Q2 Loss and Management Changes

Net Loss: Rs 25.07 crore | Revenue: Rs 439.33 crore

Reader Takeaway: Asset divestment and management exits introduce transition risk, while auditor qualifications on receivables require close monitoring.

What just happened

EPACK Durable has reported a consolidated net loss of Rs 25.07 crore for the quarter ended September 30, 2026. This follows a profitable Q1 where the company recorded Rs 11.82 crore in profit. Revenue from operations for the quarter stood at Rs 439.33 crore. Alongside the financial results, the board confirmed the resignation of CFO Rajesh Kumar Mittal, effective October 31, 2026, citing personal reasons.

Why this matters

The company is realigning its business focus by divesting its 50% stake in joint venture Epavo Electricals Private Limited to Ram Ratna Wires Limited for approximately Rs 15 crore. As part of this deal, EPACK Durable has agreed to a non-compete clause, refraining from manufacturing BLDC motors for three years. Investors should note that the company is also streamlining its corporate structure by initiating the voluntary strike-off of two non-operational subsidiaries.

Risks to watch

A significant concern for stakeholders is the qualified opinion issued by the statutory auditor regarding Rs 19.61 crore in disputed trade receivables. While management maintains that these funds are recoverable, the auditors have noted a lack of sufficient evidence regarding the customer's payment capability. Additionally, the departure of the CFO, coupled with the internal inquiry regarding a former senior management personnel, underscores a period of administrative transition.

What to track next

Watch for the completion of the Epavo Electricals divestment, expected by November 30, 2026. Shareholders should also monitor any official updates regarding the resolution of the disputed trade receivables, as this remains a key point of contention in the company's financial reporting.