EPACK Durable: record ₹886 Cr revenue (+34% YoY), but consol PAT falls 48% to ₹11.8 Cr

EPACK Durable's consolidated revenue for Q1 FY27 (quarter ended June 30, 2026) came in at ₹886.0 Cr, up 33.8% YoY from ₹662.4 Cr and up 49.9% QoQ from ₹591.0 Cr — a record quarterly print that management's press release attributes to broad-based growth led by the core RAC business alongside a scale-up in the SDA and LDA businesses. Consolidated PAT, however, fell 48.4% YoY to ₹11.82 Cr from ₹22.89 Cr, even as it rebounded sharply QoQ from a near-zero ₹0.02 Cr base in Q4 FY26 — a base itself distorted by a large PLI-incentive reversal that quarter, so the QoQ jump is not a clean signal of underlying momentum. Standalone PAT of ₹22.01 Cr is nearly double the consolidated figure; the gap stems from subsidiary-level losses and a ₹2.29 Cr share of joint-venture loss (Epavo Electricals) that only shows up at the group level — readers tracking standalone alone would see a materially better quarter than the consolidated numbers support, and consolidated is the basis that matters here.

Margins explain the profit decline. Consolidated EBITDA margin (OPM) was 6.21%, up sequentially from 4.37% in Q4 FY26 but down from 8.25% a year ago, and still short of the ~7% EBITDA margin management guided to on the FY26-Q4 call. Gross margin of ~14.1% sits within the company's guided 13-14% band. Two one-off items complicate the YoY read: the current quarter carries a modest ₹1.84 Cr RIPS incentive within other income, while the year-ago quarter's base included a larger ₹13.31 Cr PLI accrual that was later reversed and never actually recognized as FY26 income. Adjusting both periods for these one-offs narrows the YoY PAT decline to roughly 20% rather than the raw 48% — still a decline, but a materially less severe one than the headline number implies.

The stock went into the print at ₹227.27, down 6% over the past month of trading.

No third-party consensus estimates for this specific quarter turned up in search, so the print cannot be benchmarked against Street numbers. Against management's own prior guidance — a ₹5,000 Cr revenue ambition within two to three years and outperformance versus an estimated 15% industry growth rate in FY27 — the 33.8% YoY revenue growth is consistent with that trajectory, but the EBITDA margin miss versus the ~7% target is the gap still to close. The quarter's other corporate developments — a ₹1,084 Cr AP government investment approval and 36.41 acres of incentivized land, alongside CIO Mohammed Kaishulla's resignation and the appointment of Adfactors PR for investor relations — point to continued capacity expansion but are not yet reflected in this quarter's P&L. The auditor's review carried a qualified conclusion on both standalone and consolidated statements, unchanged from the prior quarter, over ₹19.61 Cr of disputed trade receivables from one customer that remains unprovided for.