EPACK Durable Limited Earnings Summary — Q1 FY2027
EPACK Durable Reports Surge in Revenue Amidst Ongoing Legal Dispute and Incentive Recognition
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹886 Cr is 33.8% higher year-on-year.
- Revenue has compounded at 26.1% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹12 Cr is 48.4% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -38.7% annualised across the period.
- Operating margin stands at 6.0% in Q1 FY2027.
- Operating margin compressed by 226 bps year-on-year.
- Over the last two years operating margin has contracted by 71 bps.
- PBT margin is 2.0%.
- Expenses grew 37.0% against revenue growth of 33.8%.
- Operating profit of ₹53 Cr is 3.0% lower year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 50/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 886 | 591 | 428 | 213 | 662 | 643 | 377 | 377 | 774 | 526 |
| Expenses | Volatile | 833 | 567 | 398 | 214 | 608 | 572 | 354 | 368 | 722 | 471 |
| Operating Profit | Volatile | 53 | 24 | 29 | -1 | 54 | 71 | 23 | 9 | 52 | 55 |
| Operating Margin | Volatile | 6.0% | 4.0% | 6.9% | -0.5% | 8.2% | 11.0% | 6.2% | 2.4% | 6.7% | 10.4% |
| Other Income | Declining | 2 | 3 | 3 | 6 | 6 | 6 | 5 | 5 | 6 | 6 |
| Interest | Improving | 20 | 11 | 13 | 20 | 16 | 14 | 12 | 14 | 14 | 11 |
| Depreciation | Improving | 17 | 14 | 14 | 14 | 13 | 12 | 12 | 12 | 11 | 11 |
| Profit Before Tax | Volatile | 18 | 1 | 5 | -29 | 31 | 50 | 4 | -12 | 32 | 39 |
| Tax | Volatile | 6 | 1 | 2 | -6 | 9 | 13 | 1 | -3 | 9 | 11 |
| Net Profit | Volatile | 12 | 0 | 3 | -22 | 23 | 38 | 3 | -8 | 23 | 28 |
| Net Margin | Volatile | 1.3% | 0.0% | 0.6% | -10.4% | 3.5% | 5.9% | 0.7% | -2.3% | 3.0% | 5.3% |
Key Takeaways
- Revenue from operations grew by 33.76% YoY to ₹88,602.35 Lakhs, driven by seasonal demand in the consumer durable sector.
- Statutory auditors issued a qualified conclusion regarding ₹1,961 Lakhs in disputed trade receivables from a single customer, noting lack of sufficient evidence for recoverability.
- The company recognized incentive income of ₹183.67 Lakhs under the Rajasthan Investment Promotion Scheme (RIPS) 2024 during the quarter.
- Profitability remains under pressure compared to the prior year (YoY) despite a sequential recovery from the low-base Q4 FY2026.
- EPACK failed to meet the incremental sales threshold for the PLI scheme in FY2025-26, leading to a reversal of prior incentives in the previous year and no PLI income this quarter.
- Seasonality significantly impacts quarterly comparability, with Q1 historically being a high-demand period for Room Air Conditioners (RAC).
Management Guidance
Management is focused on navigating the RIPS 2024 portal implementation for subsidy claims and continues to pursue legal remedies for the recovery of disputed receivables totaling ₹1,961 Lakhs.
Sentiment Shift
Improving
While YoY net profit declined sharply, the sequential recovery in both revenue and profit from a near-zero bottom line in Q4 FY2026 suggests a seasonal rebound, though the auditor qualification remains a persistent risk.
Outlook
The company’s outlook is tied to its transition to the RIPS 2024 scheme and its ability to scale volumes to offset the loss of PLI benefits. The resolution of the ₹19.6 Cr disputed receivable remains a key balance sheet monitorable.
From the Annual Report (Key Quotes)
“The business of the Group is seasonal in nature, hence the results for the quarter ended June 30, 2026 is not fully comparable with those for the preceding period.”
“Trade receivables of Holding Company include disputed balance of Rs. 1,961 lakhs... the outcome of these disputes and the ultimate recoverability of the aforesaid receivables, we are unable to determine whether any adjustment is required.”
“During the current period, no PLI income has been recognized.”
Official Quarterly Documents
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This summary is AI-generated from EPACK Durable Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.