EPACK Durable lands ₹1,084 cr Andhra Pradesh incentives
The state approves a 50% capital subsidy and land allotment for a combined investment by EPACK and its subsidiary, boosting the company's expansion plans.
— 6 earlier stories on EPACK Durable Ltd. →What's new
- Andhra Pradesh approved a tailor-made incentives package for EPACK and subsidiary EMTPL.
- Package includes 50% capital subsidy on eligible fixed investment and 36.41 acres in Sri City at ₹60 lakh/acre.
- EPACK's own ₹314.31 cr investment for an AC, components and small appliances facility is covered.
Why this matters
For a small-cap with a market cap of ₹2,253 cr and weak financials (trailing PAT down 94%), the government support materially improves project viability. The formal approval de-risks the expansion, though it was anticipated after the November 2025 intimation.
What we're watching
- Execution pace of the ₹314 cr facility and total capital outlay.
- Whether the incentives offset the recent PLI income reversal and weak profitability.
- Any further state or central policy support for the EMS sector.
The full read
EPACK Durable has been under pressure. Trailing PAT is down 94%, and the company recently reversed ₹32.4 cr in PLI income. Now Andhra Pradesh has stepped in with a tailormade incentives package for ₹1,084.31 cr of combined investment. EPACK's own ₹314.31 cr AC and appliances facility gets a 50% capital subsidy and 36.41 acres at a concessional ₹60 lakh/acre in Sri City. For a ₹2,253 cr market cap company, that is material. The approval was flagged in November 2025, so the market likely expected it. Still, formal ratification de-risks the project and gives the state's backing. The next test is whether EPACK can execute profitably after years of falling sales and margins. Hardly a sure bet.
Questions answered
- What is the total investment covered by the incentives?
- The combined investment by EPACK and its subsidiary EMTPL is ₹1,084.31 crore. EPACK's own portion is ₹314.31 crore for an AC and appliances facility.
- What incentives does EPACK get?
- The package includes a 50% capital subsidy on eligible fixed investment, other policy incentives, and allotment of 36.41 acres in Sri City at ₹60 lakh per acre.
- Was this incentives approval expected?
- Yes, EPACK had intimated its intent to apply in November 2025. The current government order formalises the approval, so it is not a sudden surprise.
- How does the investment compare to EPACK's size?
- EPACK's market cap is about ₹2,253 crore. The combined investment of ₹1,084 crore is nearly half its market cap, making it a large scale relative to the company.
- What is EPACK's recent financial performance?
- In the latest quarter (Mar 2026), EPACK reported sales of ₹591 crore and net profit of only ₹2 crore. Trailing PAT fell 94.3% and revenue declined 8.1%.
- Why is this incentives package important for EPACK?
- Given weak profitability and previous issues like PLI income reversal, the capital subsidy and land allocation improve the economics of its expansion and reduce financial strain.
EPACK Durable Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on EPACK →- 30 Jun 2026 · 5:52 PM IST EPACK Durable lands ₹1,084 cr Andhra Pradesh incentives
- 24d ago EPACK's tax demand cut to ₹5.89 cr from ₹29.03 cr after IT dept rectification
- 40d ago EPACK Durable reverses ₹32.4 cr in PLI income after missing targets
- 46d ago EPACK Durable E-pavo profitability delayed to FY28, revenue slips 12.7%
- 46d ago EPACK's RAC sales drop 24.7%; SDA and components fill the gap