Eureka Forbes (543482) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 11% year-on-year to INR 597.8 crores (₹59,774.35 lakhs), marking the fifth consecutive quarter of double-digit growth, with nine-month revenue at ₹1,82,426.21 lakhs, up 11.5% year-over-year.

• Profit after tax for Q3 FY25 was INR 34.8 crores (₹3,503.36 lakhs), up 53.6% year-on-year, with nine-month PAT at ₹11,493.37 lakhs, up 60.3% year-over-year.

• Premium innovations, such as Blaze Insta, Designo NXT, and robotics, became market leaders, and the launch of India's first IoT-enabled smart water purifier strengthened the innovation pipeline.

• Air purifier business tripled year-on-year in Q3, with strong growth in e-commerce and direct sales channels, while retail growth softened post-festive season.

• Customer service KPIs improved significantly, supported by investments in technology and organizational focus.

Financial highlights

• Q3 FY25 revenue: INR 597.8 crores (₹59,774.35 lakhs), up 11% year-on-year; nine-month revenue: ₹1,82,426.21 lakhs, up 11.5% year-on-year.

• Q3 FY25 Adj. EBITDA margin expanded 94 basis points year-on-year to 10.8%; nine-month Adj. EBITDA margin at 11.3%, up 120 basis points.

• Q3 FY25 PAT: INR 34.8 crores (₹3,503.36 lakhs), up 53.6% year-on-year; nine-month PAT: ₹11,493.37 lakhs, up 60.3% year-on-year.

• Gross margin for Q3 was 57.5%, up 125 basis points sequentially but down 142 basis points year-on-year due to post-festive consumer offers and channel mix.

• Net surplus improved to ₹191Cr in Q3 FY25; credit rating upgraded to CARE AA- and CRISIL AA- (Stable).

Outlook and guidance

• Focus remains on driving growth through sustained investments, innovation, customer experience, digitization, and cost efficiencies despite soft demand conditions.

• Management sees significant headroom for further margin expansion and profitability improvement, with ongoing workstreams in both product and service segments.

• Service revenue expected to gain momentum as recent initiatives and tiered AMC offerings begin to show impact.

• Board has approved voluntary liquidation of Dubai subsidiaries, subject to regulatory approvals.