Financial Performance and Audit Qualification
EPACK Durable Limited reported challenging FY26 results with revenue declining 12.7% to ₹18,945 million and net profit plummeting 69.8% to ₹33 million (0.17% margin). The company faced significant headwinds in the RAC industry, PLI scheme reversals, and operational challenges. Deloitte Haskins & Sells issued a qualified audit opinion due to disputed trade receivables of ₹196.1 million from one customer and identified a material weakness in internal financial controls over recoverability assessment and ECL provisioning.
7th Annual General Meeting Details
The company will convene its 7th AGM on September 18, 2026 via video conference to consider several resolutions including adoption of FY26 financial statements, re-appointment of Mr. Ajay DD Singhania as Managing Director, and ratification of Deloitte as statutory auditors for a second five-year term. Shareholders as of September 11, 2026 are eligible to vote through NSDL's e-voting platform from September 14-17, 2026.
Strategic Developments and Expansion
Despite financial challenges, EPACK pursued strategic diversification into energy meter components through new joint ventures with Bumjin Electronics (smart audio products) and EPAVO. The company launched new products including Infrared Cooktop and Nutri Blender, expanded manufacturing capacity with ₹2,971 million CAPEX, and increased its customer base from 55 to 72 clients, reducing top customer concentration from 72% to 37%.
Financial Position and Borrowings
The company's balance sheet showed significant changes with total borrowings increasing 88.6% to ₹6,436 million and current liabilities rising 33.5% to ₹12,988 million. Key financial ratios deteriorated with debt-equity ratio increasing to 0.66 from 0.39, return on equity falling to 1.82% from 6.29%, and inventory turnover declining to 2.29 from 3.79.
Regulatory and Legal Challenges
EPACK faces multiple regulatory challenges including a customs duty demand of ₹810.1 million on imports from Vietnam under ASEAN-India FTA (currently before Supreme Court), GST disputes with ₹52.25 lakhs deposited under protest, and income tax contingent liabilities of ₹53.04 million. The company also received a qualified secretarial audit report with observations on deviation statement filing and SDD maintenance.
Corporate Governance and Shareholding
Promoter shareholding stands at 47.18% with key individuals including Ajay DD Singhania (8.83%), Sanjay Singhania (8.83%), and Bajrang Bothra (7.04%). Institutional holdings include Augusta Investments Zero Pte. Ltd (6.10%). The Board held 8 meetings during FY26 with various committees meeting regularly. The company spent ₹15.62 million on CSR activities focused on healthcare and women empowerment.
Outlook and Implications
The FY26 performance reflects challenging industry conditions while strategic investments position the company for diversification beyond RAC business. The qualified audit opinion and material weakness in controls require immediate remediation, while ongoing tax disputes present contingent liabilities. The AGM outcomes will determine leadership continuity and auditor appointments critical for restoring investor confidence.