Eureka Forbes (543482) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue grew 14.9% year-over-year, surpassing INR 100 crore incremental revenue for the first time, with healthy growth across all categories and channels.

• Adjusted EBITDA margin reached a record 13.1%, crossing INR 100 crore for the first time, and PAT margin stood at 8%, up 32% year-over-year.

• Product business achieved high-teens growth for the eighth consecutive quarter, with robotics and cleaning categories driving segment gains.

• Service business accelerated with double-digit AMC bookings and filter revenue growth, and over 60% of AMC bookings from online channels.

• Customer service KPIs reached all-time highs, reflecting improved customer experience.

Financial highlights

• Q2 FY26 revenue was INR 773 crores (Rs. 773.4 Cr), up 14.9% year-over-year; PAT for Q2 was INR 61.6 crores, up 32% year-over-year.

• Adjusted EBITDA for Q2 was INR 101.6 crores, margin 13.1%, up 162 bps year-over-year.

• Gross margin for Q2 was 56.5%, up 25 bps year-over-year, though down sequentially due to seasonality.

• H1 FY26 revenue reached INR 1,381 crores, up 12.7% year-over-year; H1 PAT was INR 100.1 crores, up nearly 29%.

• Net surplus at quarter-end was Rs. 228 Cr.

Outlook and guidance

• Management expects sustained double-digit growth and year-on-year margin expansion, supported by robust category performance and transformation strategy.

• Focus remains on category creation, premiumization, and driving growth through awareness, affordability, and availability.

• Service revenue growth is expected to continue, leveraging both AMCs and filters.

• Anticipation of GST 2.0 has led to some postponement of purchases by consumers and channel partners.

• The company continues to invest in employee stock options and product innovation, adapting to changing economic and technological conditions.