EPACK Durable reverses ₹32.4 cr in PLI income after missing targets
Revenue fell 8% to ₹591 crore as the company struggled with inventory overhang and unseasonal weather. A new incentive scheme partially offsets the hit.
— 4 earlier stories on EPACK Durable Ltd. →What's new
- EPACK reversed ₹32.4 cr of previously recognized PLI income.
- The company booked a ₹21.8 cr incentive under the Rajasthan Investment Promotion Scheme.
- Hisense JV plant started AC production in late March; washing machine trials are ongoing.
Why this matters
The reversal of PLI income shows the volatility of government-linked incentives when operational targets are missed. While management points to normalized channel inventories for a better FY27, the sharp EBITDA contraction shows how sensitive the business is to demand fluctuations in the room AC market.
What we're watching
- Whether FY27 demand trends sustain the management's optimistic outlook.
- Progress on washing machine production at the Hisense JV facility.
- Any further adjustments to incentive accounting in coming quarters.
The full read
EPACK Durable faced a brutal fourth quarter. Revenue slipped 8% to ₹591 crore while EBITDA cratered 64% as the company struggled against a backdrop of unseasonal weather and high channel inventory.
This forced a reversal of ₹32.4 crore in previously booked PLI income after it became clear that incremental revenue targets would not be met. To soften the blow, the company booked ₹21.8 crore in incentives via the Rajasthan Investment Promotion Scheme. Operational focus remains on the Hisense joint venture, which began air conditioner production in late March, while washing machine trials are now in progress. Management claims that channel inventories have normalized and that early trends for FY27 look more encouraging. The next test is whether this optimism translates into a recovery as the company works through the shifting regulatory landscape for room air conditioners. It won't be easy.
Questions answered
- Why did EPACK reverse its PLI income?
- The company identified a potential shortfall in its incremental revenue targets. As a result, it reversed ₹32.4 crore in PLI incentives that it had previously recognized.
- What offset the impact of the PLI reversal?
- EPACK booked a ₹21.8 crore incentive under the Rajasthan Investment Promotion Scheme. This helped mitigate the financial impact of the PLI reversal.
- How did the Hisense joint venture perform?
- The joint venture plant began producing air conditioners in late March. Trials for washing machine production are currently underway.
- What caused the 8% revenue drop?
- Management blamed a difficult room air conditioner market. Key factors included unseasonal weather, high inventory levels, and changes to BEE efficiency norms.
Story so far
All notes on EPACK →- 27 May 2026 · 3:08 PM IST EPACK Durable reverses ₹32.4 cr in PLI income after missing targets
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- 6d ago EPACK Durable's audited FY26 results confirm steep PAT drop, no fresh surprise
- 6d ago EPACK Durable PAT crashes 70% on disputed receivables, PLI reversal