EPACK Durable Limited — PPTs, 28-05-2025: Investor Presentation

1. Financial Highlights:

EPACK Durable reported operating income of INR 21,709 Mn for the quarter and half-year, up 53% YoY. EBITDA rose 36% YoY to INR 1,576 Mn with 7.26% margins, down 93 bps due to ramp-up costs. Net profit surged 56% YoY to INR 551 Mn, with stable PAT margins at 2.54%. Q4 saw operating income of INR 6,432 Mn (+22% YoY) and EBITDA of INR 721 Mn (+30% YoY) with margins improving to 11.21%. The balance sheet reflects increased inventory and trade payables; net debt rose to INR 3,555 Mn, with a net debt-to-equity ratio of 0.37. RoCE and RoE modestly improved to 10.8% and 6.0%.

2. Strategic Initiatives & Growth Drivers:

The company is scaling its RAC segment (+50% YoY) and rapidly growing SDA (+20%) and LDA (+1,172%) businesses. A capex of INR 4,500–5,000 Mn is planned by FY26-end to expand capacity at Dehradun, Bhiwadi, Sricity, and a new Sri City plant (production from Q3FY26). New product launches including air fryers, nutri blenders, and washing machines aim to diversify revenue streams and maintain growth momentum.

3. Business Developments:

EPACK strengthened its partnership with Hisense to produce ACs and appliances in India, targeting $1 billion incremental revenue over five years. It increased its stake in EPAVO Electricals JV to 50%, enhancing capabilities in BLDC motors and HVAC products. Collaborations with Panasonic and Daikin to manufacture PCB controllers and copper components mark expansion into the EMS business. The greenfield Bhiwadi plant is set to start production in Q2FY26.

4. Market Position & Competitive Advantage:

EPACK is India’s 2nd largest ODM in RACs with a 24% market share, benefiting from strong unit manufacturing leadership. Backward integration—producing heat exchangers, copper tubing, and PCBAs in-house—drives cost efficiency. Long-term ties with marquee clients like Voltas, Haier, and Panasonic ensure stable revenue. Expansion into newer appliance categories and components further solidifies its competitive moat.

5. Investor Implications:

Strong top-line growth, margin improvement in key segments, and strategic capex with new partnerships signal positive growth potential. Execution risk lies in new plant ramp-up and rising debt levels. Diversification across RAC, SDA, LDA, and components mitigates client concentration risk and supports steady earnings growth. Investors should track capex progress and integration of new ventures for value creation.