EPACK

Epack Durable Limited (EPL) demonstrated robust growth in line with our expectations in Q4FY25, reflecting the benefits of strategic diversification and continued investment in capacity and capabilities. Strong traction was visible across all key verticals, with growth being led by expansion in newer product categories and improved localization. The LDA segment, in particular, is on a clear growth path with the washing machine portfolio set to ramp up meaningfully by Q3FY26E. SDA continued to gain scale with the introduction of new high-margin products, which are expected to contribute significantly to volumes and margins going forward. Outlook We anticipate EBITDA margins to improve to 7.5% in FY26E, driven by better absorption of fixed costs and incremental contribution from higher-margin businesses. Post our earnings revision, we arrive at a TP of ₹454, valuing the company at 40x FY27E EPS of ₹11.