EMS Stock Jumps 5% After Securing Andhra Pradesh Incentives for ₹1,084 Cr Expansion

Synopsis: The Government of Andhra Pradesh has approved a tailor-made incentive package under the Andhra Pradesh Electronics Manufacturing Policy 4.0, comprising allotment of 36.41 acres of land and a 50% capital subsidy on eligible fixed capital investment, for a proposed Air Conditioners, components and small domestic appliances facility at Sri City. 

India’s electronics manufacturing push is getting a significant state-level boost, and one Greater Noida-based home appliance contract manufacturer has just secured a substantial incentive package from Andhra Pradesh, involving land, capital subsidy, and more as it scales up its southern footprint.

With a market capitalization of Rs. 2,293 crore, the shares of EPACK Durable Limited were trading at Rs.243 per share, up by 5 percent from the previous day’s closing of Rs.232.70, and it is trading at a P/E of approximately 703x.

Incentive Update

EPACK Durable Limited has received a Government Order (G.O.MS. No. 49) dated June 29, 2026 from the Government of Andhra Pradesh, approving a tailor-made incentive package under the Mega Category of the Andhra Pradesh Electronics Manufacturing Policy 4.0. The package covers the combined investments proposed by the company and its wholly owned subsidiary, EPACK Manufacturing Technologies Private Limited (EMTPL).

The incentive package includes four key components: allotment of 36.41 acres of land at Rs.60 lakh per acre for an Air Conditioners, components and small domestic appliances facility; a 50% capital subsidy on the Eligible Fixed Capital Investment of the aggregate combined investments; extension of incentives to investments already made at Sri City by the company and EMTPL after November 2024; and all other applicable incentives under the Policy.

The Government Order relates to the company’s proposed investment of approximately Rs.314.31 crore, forming part of a combined investment of Rs.1,084.31 crore together with EMTPL. The financial benefit from these incentives will accrue progressively and is eligibility-linked.

Financial Snapshot & Business Overview

EPACK Durable Limited is a Greater Noida-based Electronics Manufacturing Services (EMS) company and one of India’s leading contract manufacturers for home appliances, primarily room air conditioners and small domestic appliances. 

The company serves as a trusted manufacturing partner to a wide roster of leading brands including Daikin, Haier, Whirlpool, Voltas, Blue Star, Panasonic, Godrej, Hisense and others, with top-2 customer concentration declining steadily from 72% in FY23 to 37% in FY26, reflecting healthy diversification.

On a consolidated basis for FY26, the company reported revenue from operations of Rs.1,894 crore, down from Rs.2,171 crore in FY25, while operating profit contracted to Rs.107 crore from Rs.155 crore, with OPM at 6%. Net profit came in at Rs.3 crore for FY26, sharply lower than Rs.55 crore in FY25, weighed down by higher interest costs of Rs.61 crore and a tax rate of 63%. 

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