EPACK Durable Limited — PPTs, 04-11-2025: Investor Presentation

**Business Performance:** EPACK Durable reported H1 operating revenue down 23.9% YoY to INR 875.7 Cr, with Q2 revenue falling 43.4% QoQ to INR 213.3 Cr. The RAC segment contracted significantly (down 45.7% YoY in H1, 76.3% QoQ in Q2) due to unseasonal rains and GST cut delays. In contrast, SDA & LDA segments showed strong growth, up 36% YoY, and Components & Others surged 89.7% YoY. RAC's revenue contribution decreased to 56% of H1, reflecting product diversification.

**Growth Drivers & Strategy:** The company is expanding its SDA, LDA, and Component segments. Strategic partnerships like the Hisense JV (targeting $1 billion incremental revenue) and EPAVO JV (for BLDC motors) are key. EPACK is also entering the EMS business for critical components, leveraging PLI benefits and tie-ups with industry leaders.

**Recent Developments:** The EPAVO JV facility commenced production in Q2 FY26, with the Hisense facility in Sri City targeting Q3 FY26. EPACK added 4 new customers and diversified into the Energy Meter component sector, while the Air Fryer segment showed robust growth.

**Key Financial Metrics:** H1 EBITDA declined 8.3% YoY to INR 56.4 Cr (6.44% margin). Q2 EBITDA was INR 0.5 Cr (0.23% margin), resulting in a net loss of INR 22.2 Cr. Net Debt-to-Equity increased to 0.71, and the Cash Conversion Cycle lengthened to 112 days.

**Management Outlook:** Management sees RAC demand rebounding and expects continued momentum. EPACK plans INR 450-500 Cr in strategic capex by Q1 FY26-27 to significantly boost capacities for future demand.