Eureka Forbes (543482) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 8% year-on-year to INR 645.4 crore (₹64,539.58 lakhs), with adjusted EBITDA margin expanding by 57 bps to 11.3%.

• Growth was impacted by a post-festive slowdown and elevated trade inventory, especially in e-commerce, but Robotics and Air Purifiers delivered strong growth, with air purifiers growing 3x on a low base.

• Water purifiers outperformed the category and gained market share both sequentially and year-on-year, despite high channel inventory.

• Service business saw double-digit AMC bookings growth for the third consecutive quarter.

• Profit before exceptional items and tax for the quarter was ₹5,413.20 lakhs; profit after tax stood at ₹1,002.29 lakhs.

Financial highlights

• Q3 revenue: INR 645.4 crore (₹64,539.58 lakhs), up 8% year-on-year; adjusted EBITDA margin: 11.3%, up 57 bps year-on-year.

• Adjusted PBT grew 11.3% year-on-year; pre-exceptional PAT at INR 39 crore, up 11.9%.

• One-time pre-tax charge of INR 40.4 crore (₹4,044.18 lakhs) due to new Labour Codes, reported as an exceptional expense.

• Gross margin expanded 331 bps year-on-year to 60.8% in Q3.

• YTD revenue: INR 2,026.6 crore (₹2,02,534.46 lakhs), up 11.1% year-on-year; YTD adjusted EBITDA margin: 11.9%.

Outlook and guidance

• Q3 slowdown seen as a one-off; Q4 expected to return to double-digit growth, ahead of YTD growth of 11.1%.

• Ambition to more than double revenue and triple EBITDA by FY30, targeting Rs. 5,400–5,600 Cr revenue and Rs. 800–850 Cr EBITDA.

• Inventory levels are normalizing, with growth trajectory expected to stabilize from Q4 onwards.

• The company continues to monitor regulatory developments, especially regarding the new Labour Codes.