Eureka Forbes (543482) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue grew 15.3% year-on-year to INR 701 crore, driven by broad-based growth across product categories, especially water purifiers, robotics, and softeners.

• Water purifiers saw high-teens growth with double-digit volume and pricing gains, outpacing the market and gaining share.

• Emerging categories like robotics, air purifiers, and water softeners delivered strong growth, supported by premiumization and new product launches.

• Adjusted EBITDA margin was 10.5%, impacted by lower gross margin and higher advertising and sales promotion spends.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2026, were reviewed and approved by the Board on August 12, 2026.

Financial highlights

• Revenue for Q1 FY27 was INR 701 crore (Rs. 700.8 Cr), up 15.3% year-on-year.

• Adjusted EBITDA grew 10.5% year-on-year to INR 74 crore (Rs. 73.9 Cr); margin at 10.5%, down 46 bps year-on-year.

• Gross margin stood at 58.4%, down 131 bps year-on-year due to higher commodity costs and currency volatility.

• Reported PAT grew 44% to INR 55 crore (Rs. 55.4 Cr), including a one-time gain of INR 19.5 crore from gratuity expense reversal; pre-exceptional PAT up 6.1% to INR 41 crore.

• Net cash surplus at quarter-end was INR 425 crore.

Outlook and guidance

• Full-year EBITDA margins expected to be broadly in line with last year, despite cost pressures.

• Management remains optimistic, focusing on accelerating growth, transformation, and continued investments in product innovation, in-store presence, and brand building.

• The company continues to monitor regulatory developments, especially regarding new Labour Codes, and will assess accounting implications as guidance evolves.

• A&SP spends to increase ahead of revenue growth, focused on in-store presence and consumer finance adoption.