Eureka Forbes (543482) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw challenging market conditions with soft consumer demand, but revenues grew 9.9% year-over-year, driven by double-digit growth in water purifiers (EWPs) and vacuum cleaners (VCs), especially robotics.

• Service business achieved a decisive turnaround with double-digit growth in fresh service bookings and increased share of multi-year AMC mix.

• Innovations in EWPs (two-year filter life, IoT-enabled products) and robotics in VCs contributed significantly to growth.

• PAT grew 24.1% year-over-year, with overall revenue growth of 9.9% in a challenging market.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board on August 11, 2025.

Financial highlights

• Q1 revenue reached INR 607.7 crores (₹60,774.07 lakhs standalone, ₹60,786.94 lakhs consolidated), up 9.9% year-over-year.

• Profit after tax was INR 38.5 crores (₹3,852.22 lakhs standalone, ₹3,869.91 lakhs consolidated), up 24.1% year-over-year.

• Adjusted EBITDA margin stood at 11% for Q1, after absorbing higher service charge payouts and growth investments.

• Gross margin was 59.7%, slightly down from 60.5% last year but up 20 bps sequentially.

• Net surplus at Rs. 254 Cr, maintaining a healthy cash balance.

Outlook and guidance

• Management expects double-digit growth in service bookings to sustain, with revenue impact from these bookings to be reflected meaningfully from Q4 FY26.

• Full-year margin improvement remains a key ambition for FY26, with operating leverage and cost efficiencies as primary drivers.

• Focus on expanding category penetration, especially with new 2x water purifier range targeting non-users.

• Continued investments in product innovation, digitization, and R&D, with capex guidance of Rs. 50–60 Cr annually.

• The company continues to focus on health and hygiene products and services, with no separate reportable segments.