EPACK's tax demand cut to ₹5.89 cr from ₹29.03 cr after IT dept rectification
The Income Tax Department reduces a previous demand, but the dispute isn't closed. The remaining ₹5.89 cr is 33% of FY26 PAT, a notable overhang for the small-cap EMS firm.
— 6 earlier stories on EPACK Durable Ltd. →What's new
- IT Department reduces EPACK's tax demand from ₹29.03 cr to ₹5.89 cr for AY23-24.
- Rectification order follows company's appeal; dispute not fully resolved.
- Remaining demand is 33% of FY26 PAT of ₹17.6 cr, material but not game-changing.
Why this matters
The reduction provides incremental relief, but the tax matter remains open. With EPACK's PAT down 94% trailing and just ₹2 cr in the latest quarter, a 33%-of-PAT liability is a real overhang. The stock's 672x P/E prices a turnaround story that the tax relief does not alter.
What we're watching
- Resolution of the appeal; full closure would remove the entire ₹5.89 cr liability.
- Cash flow impact if the ₹5.89 cr demand is eventually paid.
- Management commentary on other regulatory risks in upcoming concalls.
The full read
EPACK's tax saga has taken a positive turn. The Income Tax Department has cut its demand from ₹29.03 cr to ₹5.89 cr for assessment year 2023-24. The rectification order follows an appeal the company had already filed, but the dispute is not closed: ₹5.89 cr remain, equal to about 33% of FY26's full-year profit of ₹17.6 cr. For a company whose latest quarter net profit was just ₹2 cr, that is a material liability. The stock's high P/E of 672x has been pricing a turnaround story that the tax relief does not change. The stock gets a clean-up, but not a clean slate.
Questions answered
- What was the original tax demand and what is the new amount?
- The IT Department originally raised a demand of ₹29.03 cr for AY23-24. After rectification, the demand has been reduced to ₹5.89 cr.
- Why did the Income Tax Department reduce the demand?
- The filing does not specify the reason for the rectification. It is likely a correction based on company representations or review of the assessment.
- Does this settle the tax dispute for EPACK?
- No. The company has already filed an appeal against the original demand, and the rectification order does not fully resolve the dispute. The remaining ₹5.89 cr demand is still contested.
- How does the remaining demand compare to EPACK's profits?
- The remaining ₹5.89 cr represents about 33% of FY26 PAT of ₹17.6 cr. For the latest quarter ended March 2026, net profit was just ₹2 cr.
- Could EPACK have to pay the ₹5.89 cr eventually?
- Yes, if the appeal is not successful, EPACK may need to pay the reduced demand. The outcome depends on the appellate process.
EPACK Durable Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on EPACK →- 12 Jun 2026 · 6:19 PM IST EPACK's tax demand cut to ₹5.89 cr from ₹29.03 cr after IT dept rectification
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- 46d ago EPACK Durable E-pavo profitability delayed to FY28, revenue slips 12.7%
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