Epack Durable is gearing up for a transformative growth phase despite recent headwinds in the air-conditioner segment. According to Nirmal Bang’s latest conference update, Q2 FY26 performance was hit by a sharp slowdown in room AC sales due to GST-related disruptions, which led to nearly six weeks of zero sales. However, management remains optimistic, projecting mid-teen growth for FY26 and a robust 18–20% CAGR over the next three to five years.
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Nirmal Bang Report
We maintain our Buy rating on Epack Durable Ltd. with a revised target price of Rs 413, valuing the stock at 30x Sep-27E EPS, a multiple we consider fair given its strong growth visibility.
With the Hisense facility set to begin mass production by Q4 FY26, the company is well-positioned for a sharp rebound in FY27E.
We expect a 28% revenue CAGR over FY25–28E, supported by an improving product mix, better operating leverage, and sustained momentum in the SDA, LDA, and components segments.
The Hisense JV, focused on exports, further strengthens Epack’s growth profile by reducing dependence on the domestic market, thus reinforcing our positive view on its medium-term outlook.
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