Company Overview

EPACK Durable Limited, incorporated in 2019, has rapidly emerged as a significant player in India's consumer durables sector, particularly as an Original Design Manufacturer (ODM) of room air conditioners (RAC). While incorporated in 2019, its operational roots trace back to 2003 when it began as a contract manufacturer of consumer durables. The company transitioned to an ODM model for air conditioners and small appliances in 2012. EPACK Durable Limited now stands as India's 2nd largest room air conditioner ODM, holding a substantial 24% domestic market share in H1FY25. This strong market position is a testament to its robust manufacturing capabilities and enduring customer relationships cultivated over two decades.

Business Operations and Manufacturing

The company's core business involves the design and manufacturing of complete room air conditioners (RAC). This includes window air conditioners (WACs), split air conditioners (SACs) comprising indoor units (IDUs) and outdoor units (ODUs), with capacities ranging from 0.75 ton to 2 ton across various energy ratings and refrigerant types. EPACK also produces split inverter air conditioners. Beyond its primary focus on air conditioners, the company designs and manufactures other consumer appliances such as induction cooktops, mixer-grinders, and water dispensers.

A key strength of EPACK Durable is its high degree of vertical integration. The company manufactures critical components like heat exchangers, cross-flow fans, axial fans, sheet metal press parts, injection-molded components, copper-fabricated products, universal motors, and induction coils. These components are utilized for captive consumption and also offered to its customers, ensuring stringent quality control and cost efficiencies throughout its value chain.

Market Position and Growth Strategy

EPACK Durable has successfully cemented its position in the Indian market through strategic partnerships and significant capacity expansions. The company showcased strong financial performance in FY '25, achieving a remarkable 53% revenue growth to INR 2,171 crores. This growth was complemented by improved EBITDA margins, driven by enhanced operational efficiencies. Despite navigating challenges such as inventory management and supply chain disruptions (notably concerning copper quality), the company maintains a positive outlook. It targets a top-line growth exceeding 35% for FY '26.

Strategic investments amounting to INR 450 to 500 crores are earmarked to further bolster production capacities and diversify its product portfolio. This includes the development of a new greenfield manufacturing facility in Bhiwadi. Additionally, EPACK is strategically capitalizing on the escalating demand for air coolers and BLDC motors, positioning itself competitively against imported alternatives.

Financial Performance and Key Metrics

FY25 Annual Results:

- Revenue: INR 2,171 Crore

- Profit: INR 55.1 Crore

- Net profit for the full year rose 55.89% to INR 55.14 crore in the year ended March 2025, compared to INR 35.37 crore in the previous year ended March 2024.

- Sales increased by 52.93% to INR 2,170.87 crore in the year ended March 2025, versus INR 1,419.56 crore during the previous year ended March 2024.

Q4 FY25 Results:

- Revenue saw a 22% year-on-year increase, reaching INR 643.2 crore in Q4 FY25.

- Net profit rose 36% year-on-year to INR 37.7 crore.

- EBITDA stood at INR 72.1 crore, a 30% year-on-year growth.

- Room Air Conditioners accounted for 64% of EPACK Durable's total revenue in Q4 FY25.

Stock Performance and Market Valuation

The company commands a market capitalization of ₹3,586 crores, reflecting a significant 116% increase in market value over the past year, as per the latest available data. Shares of EPACK Durable debuted on the stock market on January 30, 2024. The scrip was initially listed at INR 225, representing a discount of 2.17% to its issue price of INR 230.

Key financial ratios are as follows:

- Stock P/E: 64.8

- Book Value: ₹ 99.2

- ROCE (Return on Capital Employed): 9.70 %

- ROE (Return on Equity): 5.98 %

- Promoter Holding: 48.0%

Corporate Structure and Leadership

EPACK Durable Ltd was originally incorporated on April 20, 2019, as `EPACK Durables Solutions Private Limited` in Greater Noida, Uttar Pradesh. Following the conversion of M/s E-Vision, a Partnership Firm, into a Private Limited Company, the company's name was changed to `EPACK Durable Private Limited` on September 17, 2021. Subsequently, it was converted from a Private Limited Company to a Public Limited Company, and its name was changed to `EPACK Durable Limited` via a fresh Certificate of Incorporation dated June 28, 2023.

The main management comprises BAJRANG BOTHRA as Chairman, and Jyoti Verma serves as the Company Secretary for EPACK Durable Ltd.

Future Outlook

"Q4 FY25 has been a strong quarter backed by customer additions, an optimized product mix, and strategic planning. Our Sricity plant will reach full utilization in the upcoming quarters, driving margin improvements. Our JV with EPAVO and the expanding SDA and Components pipeline will further elevate our market positioning," stated Ajay DD Singhania, Managing Director & CEO of EPACK Durable.

The company is committed to expanding its manufacturing capabilities and diversifying its product portfolio to capitalize on emerging opportunities within the Indian consumer durables market. With a foundation of robust financial performance and strategic investments in capacity expansion, EPACK Durable is well-positioned to sustain its growth trajectory in the coming years.