Shares of EPACK Durable Limited slid 10% on 21 May, hitting a day low of Rs 233.30 on the NSE, after the company reported a near-total collapse in quarterly profit driven by a one-time reclassification of government incentive income.

Net profit for Q4 FY26 came in at just Rs 2.4 lakh, down 99.9% from Rs 37.7 crore in the same quarter last year. The primary reason was a one-time reclassification of Rs 32.42 crore in PLI income during the quarter, which sharply reduced reported quarterly profit.

Revenue for the quarter fell 8.1% year-on-year to Rs 591 crore. EBITDA dropped 64% to Rs 25.8 crore, and margins shrank to 4.4% from 11.2% a year ago.

For the full financial year FY26, the picture was similarly weak. Annual revenue declined 12.7% to Rs 1,894.5 crore, net profit fell 94% to Rs 3.3 crore, and EBITDA was down 27.7% compared to FY25.

Not everything went wrong. The components business grew 102.8% for the year, and the small and large domestic appliances segment expanded 34.8%. 

Air conditioner sales, though, dropped 33.2% for the full year as demand softened and inventory normalised across the industry.

The company called FY26 a transition year. AC volumes were hit by weather-led demand disruption and GST changes. 

Management noted that demand for air fryers is gaining traction and that the non-AC share of revenue has grown from 20% in FY23 to 42% in FY26.

The stock was listed in January 2024 at an IPO price of Rs 230. At its intraday low of Rs 233.30, it came within touching distance of that level. 

At 10:47 am on 21 May, shares of EPACK Durable were trading at Rs 238.00, down 8.18% on the NSE. The stock has remained under pressure this year and has declined sharply over the past 12 months.

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