EMS stock jumps 3% after reporting 101% QoQ increase in revenue

Synopsis: Epack Durable Limited reports 100.58% QoQ revenue growth and a 3.19% YoY net profit surge in Q3 FY26 results.

This EMS Stock, engaged in manufacturing room air conditioners (RACs), small domestic appliances like induction cooktops, mixer grinders, and water dispensers, plus components such as heat exchangers and fans, jumped 3.10 percent after the company reported December quarterly results with a 100.58 percent QoQ increase in revenue.

With a market capitalization of Rs. 2,529.85 crores, the share of Epack Durable Limited has reached an intraday high of Rs. 269.35 per equity share, rising nearly 3.10 percent from its previous day’s close price of Rs. 261.25. Since then, the stock has retreated and is currently trading at Rs. 263.40 per equity share. 

Q3 FY26 Result Walkthrough

Coming into the quarterly results of Epack Durable Limited, the company’s consolidated revenue from operations increased by 13.51 percent YOY, from Rs. 376.84 crore in Q3 FY25 to Rs. 427.75 crore in Q3 FY26, and grew by 100.58 percent QoQ from Rs. 213.26 crore in Q2 FY26.

In Q3 FY26, Epack Durable Limited’s consolidated net profit increased by 3.19 percent YOY, reaching Rs. 2.59 crore compared to Rs. 2.51 crore during the same period last year. As compared to Q2 FY26, the net profit has converted from a loss to a profit, from a net loss of Rs. 22.25 crore.

The basic earnings per share increased by 3.85 percent and stood at Rs. 0.27 as against Rs. 0.26 recorded in the same quarter in the previous year, FY2025. Epack Durable Limited’s revenue and net profit have grown at a CAGR of 32.99 percent and 47.90 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 9.70 percent and 5.98 percent, respectively. Epack Durable Limited has an earnings per share (EPS) of Rs. 4.27, and its debt-to-equity ratio is 0.76x.

Revenue Mix

In Q3 FY26, EPACK Durable reported operating revenue of Rs. 427.8 crore. AC revenue stood at Rs. 243.6 crore, contributing 56.94 percent of the total. SDA & LDA accounted for Rs. 79.2 crore (18.51 percent), while Components & Others contributed Rs. 83.5 crore (19.52 percent). Others added Rs. 21.5 crore (5.03 percent).

For 9M FY26, the company’s total operating revenue stood at Rs. 1,303.4 crore. Air Conditioners (AC) were the largest contributor at Rs. 738.0 crore, accounting for 56.62 percent of revenue. SDA & LDA generated Rs. 264.2 crore (20.27 percent), while Components contributed Rs. 227.0 crore (17.42 percent). Other products added Rs. 74.1 crore, forming the remaining 5.69 percent, reflecting an AC-led yet diversified revenue mix.

Client Base

EPACK Durable has built a strong and diversified client base, working with well-known home appliance brands such as Haier, Voltas, Daikin, Blue Star, Whirlpool, Panasonic, LG, Samsung, Godrej, Carrier, Hitachi, and Crompton.

Customer concentration has also improved clearly over time. Top-2 customer dependency has reduced from 72 percent in FY23 to 58 percent in FY24, 46 percent in FY25, and further to 38 percent in 9M-FY26, reflecting healthier revenue diversification and lower business risk compared to earlier years.

Future Outlook

EPACK Durable’s future growth will be driven by the SDA, LDA, and Components segments, covering products like air fryers, mixer grinders, nutri blenders, vacuum cleaners, and washing machines. The company is strengthening existing client relationships and expanding in the ODM segment, while the RAC business continues to grow steadily.

Growth will be supported by NCNP, NCEP, and ECNP strategies in FY26, along with the addition of Genus (Energy Meters) as a new client. A planned Rs. 450-500 crore capex to be completed by Q2 FY27 will expand capacity and enable new product launches from FY27 onwards.

Company Overview

EPACK Durable Limited was founded in 2003 and is a leading Indian OEM/ODM manufacturer focused on room air conditioners and small domestic appliances such as induction cooktops, mixer grinders, and water dispensers. The company has grown into India’s second-largest RAC ODM, with a 24 percent share of the domestic market, backed by strong manufacturing scale and client relationships.

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