Epack Durable Ltd

- EPACK Durable Limited is funding its INR450 crores capex through a mix of sources: - INR230 crores from IPO proceeds (already raised and unutilized). - Around INR70 crores to INR80 crores through new term loans (debt). - INR100 to 150 crores through internal accruals. - The company does not mention any immediate plans for fresh equity fundraising beyond the IPO proceeds. - Average cost of borrowing is around 7.9% to 8%. - The focus is on utilizing internal funds, IPO proceeds, and limited debt, indicating no large-scale new equity raise planned in the near term.

- EPACK Durable Limited has planned a capex of INR 450-500 crores over the next 12 to 18 months. - INR 100 crores investment in a wholly owned subsidiary (EPACK Manufacturing) setting up a facility for Hisense products. - About INR 150 crores allocated for ramping up capacities in the new Sri City plant focusing on washing machines and component manufacturing. - INR 125 crores earmarked for a new greenfield facility construction in Bhiwadi, targeting new product categories like RAC, SDA, and LDA, to be completed by end of FY '26. - Smaller INR 20 crore investment for fine-tuning capacities at the current Dehradun facility. - Total gross block expected to increase from INR 850 crores (FY '25) to approximately INR 1,050 crores by end of FY '26. - The capex will be funded through IPO proceeds (INR 230 crores), new term loans (around INR 70-80 crores), and internal accruals.

- EPACK Durable Limited targets over 35% revenue growth for FY '26. - Room AC market expected to grow 15-20%, with EPACK planning to surpass this industry growth. - Small domestic appliances and components are expected to grow multifold. - Washing machine category ramp-up starting Q2 FY '26, with current capacity of 30,000 units/month and plans to expand portfolio by FY '27. - Air cooler revenue projected to double in FY '26 compared to FY '25 (INR60 crores last year). - Broad-based growth across segments, including RAC, SDA, components, and large domestic appliances. - Increasing customer base from 55 to 70 in the current financial year. - Expansion of manufacturing capacity through new and existing plants to support growth. - Medium-term EBITDA margin guidance around 8%, supporting profitable growth.

- EPACK Durable Limited projects revenue growth of over 35% for FY '26 while maintaining EBITDA margins around 7.5% plus and stable PAT levels. - Medium-term target (2-3 years) is to achieve EBITDA margins around 8% plus/minus with an aim to improve further beyond 8% in the next 3-4 years. - The company plans to ramp up new product categories like SDA and LDAs, and expects multifold growth in these segments alongside the core room AC category. - With new plants (e.g., Sri City and Epavo) reaching optimal capacity utilization, operating efficiencies and asset turnover ratios are expected to improve, targeting a net asset turn of approximately 4x by FY '27. - Investments of INR 450-500 crores over the next 12-18 months aim to expand manufacturing capabilities, supporting sustained top-line and profit growth. - Overall, the company expects sustainable and profitable growth driven by new customers, product diversification, and increased capacity utilization.

- The current order book remains healthy as per management comments. - Despite some Q1 demand slowdown and inventory buildup, large customers have not indicated substantial concerns affecting the full financial year. - Orders from new customers, especially for washing machines, are expected to start gradually from June (Q2 FY '26), with significant ramp-up anticipated from Q3 onwards. - Field trials for new customers have been completed, and orders have been received. - The company is confident about sustained order inflows in AC and other categories given the diversified customer base. - Customers are optimistic about inventory movement improving in Q2 FY '26. - No specific quantitative value of the order book was disclosed in the call transcript.