EPACK Durable Limited, a Greater Noida-based company, is a prominent player in India’s consumer durables sector, specializing as an Original Design Manufacturer (ODM) for room air conditioners (RACs) and small domestic appliances. As of April 5, 2025, the company has been in focus due to its growth in the air conditioning market and strategic expansions. This article explores EPACK Durable’s business model, its financial performance for Q3 FY25 (October-December 2024), and details on its promoters and shareholding pattern, based on available data.
EPACK Durable Business Model
EPACK Durable operates as an ODM, designing and manufacturing products for other brands, with a strong emphasis on room air conditioners and a growing presence in small appliances. Founded in 2003 and incorporated in 2019, the company has evolved from a contract manufacturer to India’s second-largest RAC ODM, holding a 24% domestic market share in H1 FY25.
1. Core Operations: Room Air Conditioners (RACs)
The bulk of EPACK’s revenue comes from RACs, which accounted for approximately 70% of its product revenue in Q2 FY25. The company manufactures both indoor and outdoor units, along with components like sheet metal parts, injection-molded parts, cross-flow fans, and PCBA components. Its clients include major brands like Voltas, and it benefits from India’s rising demand for air conditioners, driven by increasing temperatures and low penetration (8% vs. a global average of 42%).
2. Small Domestic Appliances (SDAs)
EPACK has diversified into SDAs such as induction cooktops, water dispensers, air fryers, and washing machines. Production of washing machines began in October 2024, with plans to scale to 150,000 units monthly within a year. The air fryer segment is also expanding, targeting 1 million units in 2026, reflecting a shift to reduce RAC reliance from 80% to 70% of revenue.
3. Strategic Partnerships and Exports
A key development is EPACK’s October 2024 agreement with Hisense International Singapore to manufacture air conditioners and appliances using Hisense’s technology. This includes a new facility in Sricity, Andhra Pradesh, with a capacity of 1 million RACs by FY28, starting June 2025. Products will serve both domestic and export markets, aiming for $1 billion in additional revenue over five years.
4. Revenue Model and Risks
EPACK’s revenue is project-based, supported by Production-Linked Incentive (PLI) schemes (e.g., Rs 37.5 crore expected in FY25). Its backward integration—producing critical components in-house—enhances cost efficiency but requires significant capital investment. Risks include seasonal demand fluctuations, high competition from players like PG Electroplast, and reliance on a few large clients.
Operational Scale
With facilities in Greater Noida and Sricity, EPACK reported FY24 revenue of Rs 1,428.51 crore. Management targets Rs 2,150 crore in FY25 and $1 billion (Rs 8,300 crore) by FY29, leveraging industry growth (20% CAGR for RACs) and capacity expansion.
Q3 FY25 Earnings: Financial Performance
EPACK Durable’s Q3 FY25 results (October-December 2024), released in late January 2025, reflect its performance amid strong demand and operational scaling. Data is sourced from consolidated figures reported on platforms like Business Standard and Moneycontrol.
Key Financial Highlights
- Revenue: Consolidated revenue from operations reached Rs 376.83 crore, up 35% YoY from Rs 279.05 crore in Q3 FY24. Total income, including other income, was Rs 381.70 crore, a 35.8% YoY increase. Sequentially, revenue was flat compared to Rs 377.10 crore in Q2 FY25.
- Net Profit: Net profit declined 48.86% YoY to Rs 2.5 crore from Rs 4.89 crore in Q3 FY24. However, it rebounded 129.56% from a Rs 8.49 crore loss in Q2 FY25, aided by cost management and PLI incentives.
- Expenses: Total expenses rose 37.73% YoY to Rs 377.28 crore, driven by a 102.09% increase in material costs (Rs 309.04 crore) and a 69.91% rise in finance costs (Rs 13.75 crore). Employee costs grew 61.33% to Rs 16.77 crore.
- EBITDA: Operating EBITDA was Rs 9.6 crore, up 25% YoY, but margins contracted to 2.55% from 4.32% in Q3 FY24, reflecting higher costs outpacing revenue growth.
- EPS: Earnings per share fell to Rs 0.26 from Rs 0.62 in Q3 FY24, based on 9.60 crore outstanding shares.
Performance Drivers
- RAC Demand: Strong RAC sales (70% of product revenue) supported growth, though off-season demand tapered compared to Q2’s 187% YoY surge.
- PLI Support: Rs 14.5 crore accrued in Q1 FY25 under the PLI scheme bolstered profitability, with more expected in Q3.
- New Segments: Early contributions from washing machines and small appliances added to revenue, though low capacity utilization (10% at Sricity in H1 FY25) limited margins.
Challenges and Outlook
Q3 profit decline highlights cost pressures and margin compression, despite revenue growth. Management’s FY25 revenue target of Rs 2,150 crore (45-50% growth) remains intact, supported by a strong order book and Hisense collaboration. However, a weak Q2 and flat Q3 revenue raise concerns about achieving this, with analysts on X noting a need to monitor H2 FY25 execution.
Promoter Details
EPACK Durable’s promoters are linked to its founding leadership, with limited public detail beyond their roles and shareholding.
- Key Figures: Ajay D.D. Singhania (MD & CEO), Sanjay Singhania (Whole-Time Director), and Bajrang Bothra (Director) lead the promoter group. Laxmi Pat Bothra (Director) also plays a strategic role.
- Background: The Singhania family has driven EPACK’s growth since 2003, transitioning it from contract manufacturing to an ODM. Ajay Singhania’s public statements emphasize long-term goals like $1 billion revenue by FY29.
- Management: The board includes independent directors like Priyanka Gulati and Kailash Chandra Jain, balancing promoter influence with governance.
Specific promoter histories are not widely disclosed as of April 5, 2025, but their stake is detailed in the shareholding pattern.
Shareholding Pattern
As of December 31, 2024, EPACK Durable’s shareholding pattern reflects ownership distribution, per data from Economic Times and Angel One:
- Promoter Holding: Promoters held 48.09% (post-IPO dilution from 65.36%), with no significant change reported in Q3 FY25 updates.
- Foreign Institutional Investors (FIIs): FIIs owned 2.15%, a slight increase from earlier quarters, indicating modest foreign interest.
- Domestic Institutional Investors (DIIs): DIIs held 0.25%, down sharply from 7.09% in September 2024, suggesting institutional exits.
- Public/Retail Investors: Public holding was 49.51%, reflecting high retail participation in this small-cap stock (market cap ~Rs 3,663.09 crore as of March 2025).
Analysis
- Promoters retain control, though post-IPO dilution indicates openness to public investment.
- Low institutional holding (FII + DII < 3%) contrasts with high retail ownership, contributing to stock volatility (52-week range: Rs 157.90–Rs 669.95).
- X posts highlight retail enthusiasm, with some calling EPACK a “mini PG Electroplast,” though this reflects sentiment rather than fundamentals.
Conclusion
EPACK Durable’s business model capitalizes on India’s growing RAC market, with diversification into small appliances and strategic partnerships like Hisense enhancing its outlook. Q3 FY25 showed a 35% revenue increase to Rs 376.83 crore but a 48.86% profit drop to Rs 2.5 crore, signaling cost challenges. Promoters, led by the Singhania family, hold 48.09%, with retail investors dominating at 49.51%. As of April 6, 2025, EPACK’s Rs 2,150 crore FY25 target hinges on H2 execution, with long-term potential tied to industry tailwinds and capacity growth. Investors should weigh its niche strengths against competitive and operational risks.
