Financial Performance Overview

Eureka Forbes Limited reported its standalone financial results for the quarter ended June 30, 2026 (Q1 FY27). The company achieved revenue of Rs 700.8 Cr, representing 15.3% year-over-year (YoY) growth from Rs 607.7 Cr in Q1 FY26 and 2.5% quarter-over-quarter (QoQ) growth from Rs 683.8 Cr in Q4 FY26. This represents the highest ever revenue growth in the company's transformation journey.

Profitability Metrics

  • Adjusted EBITDA: Rs 73.9 Cr, up 10.5% YoY from Rs 66.9 Cr (Q1 FY26) but down 18.0% QoQ from Rs 90.1 Cr (Q4 FY26)
  • Adjusted EBITDA Margin: 10.5%, declined by 46 basis points YoY from 11.0% and by 264 basis points QoQ from 13.2%
  • Adjusted Profit Before Tax: Rs 61.5 Cr, up 7.2% YoY from Rs 57.3 Cr but down 16.3% QoQ from Rs 73.4 Cr
  • Profit After Tax (Pre-Exceptional): Rs 40.9 Cr, up 6.1% YoY from Rs 38.5 Cr but down 19.9% QoQ from Rs 51.1 Cr
  • Reported PAT: Rs 55.4 Cr, up 43.9% YoY from Rs 38.5 Cr and up 8.6% QoQ from Rs 51.1 Cr, including a one-time pre-tax gain of Rs 19.5 Cr due to reversal of gratuity expense

Expense Breakdown

| Particulars (Rs. Cr) | Q1 FY27 | Q1 FY26 | YoY Change | Q4 FY26 | QoQ Change |

| Employee Benefit Expenses | 90.0 | 81.2 | +10.7% | 87.9 | +2.4% |

| Service Charges | 83.4 | 81.4 | +2.7% | 85.2 | -2.1% |

| Other Expenses | 162.0 | 133.5 | +21.4% | 138.0 | +17.4% |

| Total Expenses | 335.4 | 296.1 | +13.3% | 311.1 | +7.8% |

| Total Expenses % of Revenue | 47.9% | 48.7% | -85 bps | 45.5% | +237 bps |

Other Financial Items

  • ESOP Charge: Rs 6.6 Cr, up 16.2% YoY from Rs 5.6 Cr and up 31.7% QoQ from Rs 5.0 Cr
  • Finance Cost: Rs 1.1 Cr, up 9.1% YoY from Rs 1.0 Cr but down 41.1% QoQ from Rs 1.8 Cr
  • Depreciation: Rs 9.8 Cr, up 17.3% YoY from Rs 8.3 Cr but down 16.1% QoQ from Rs 11.7 Cr
  • Amortization: Rs 8.8 Cr, up 19.0% YoY from Rs 7.4 Cr and up 6.3% QoQ from Rs 8.2 Cr
  • Other Income: Rs 7.2 Cr, up 0.7% YoY from Rs 7.1 Cr and up 42.6% QoQ from Rs 5.0 Cr

Business Performance Drivers

Revenue Growth: The 15.3% YoY revenue growth was driven by:

  • Double-digit volume growth and price increases in Water Purifiers
  • Strong growth in Emerging Categories (Robotics, Air Purifiers, Water Softeners)
  • Product business revenue grew in late teens during the quarter
  • High-teens growth in Water Purifiers specifically

Margin Pressure: Adjusted EBITDA margin decline of 46 bps YoY was attributed to:

  • Gross margin decline of 131 bps YoY to 58.4% due to commodity inflation
  • Higher Advertising & Sales Promotion (A&SP) spends during the quarter
  • Growth spends accelerated to strengthen in-store presence

Service Business: The company launched an aggressive multi-media campaign to drive awareness of genuine Aquaguard filters and accelerate their adoption.

Management Commentary

Mr. Pratik Pota, MD and CEO, commented: \"We started FY27 on a solid note with revenue growth of 15.3% in Q1. Growth was broadbased across all our categories and channels. Water Purifiers witnessed revenue acceleration with a high-teens growth in Q1 FY27 coming through a combination of double-digit volume growth and pricing. Our Emerging categories of Robotics, Air Purifiers and Water Softeners sustained their strong growth momentum as well.\"

He further added: \"This growth in the product portfolio was driven by strong product innovation, focused go-to-market interventions including stronger in-store presence in modern retail, improved execution, and continued brand investments.\"

On margins: \"Adjusted EBITDA margins came in at 10.5%, impacted by gross margin reduction owing to commodity inflation and higher A&SP spends during the quarter.\"

Outlook: \"Looking ahead, while the external environment remains uncertain, the fundamentals of our business remain strong. Having built a solid foundation over the last few years, and with a strong start in Q1, we are now focused on stepping up growth and unlocking the next phase of our transformation journey.\"

Strategic Initiatives

The presentation highlighted the company's transformation strategy to \"Re-Imagine EFL As A D2C Health and Hygiene Tech Leader\" and \"Provide Every Indian Access to Safe & Healthy Water, Clean Earth & Pure Air.\"

Key initiatives mentioned:

  • Strengthening in-store presence in modern retail
  • Product innovation including Aquaguard Sure Astor Steel (Stainless Steel RO+UV Water Purifier)
  • Sustained growth momentum in Robotics category
  • Multi-media campaign for genuine filter awareness in service business

Industry Context

The presentation provided industry context showing under-penetrated categories with long runway for growth:

  • Water Purifier (Product): Market expected to grow from Rs 4,350 Cr in FY23 to Rs 10,200 Cr in FY30E (13% CAGR)
  • Water Purifier (Service): Market expected to grow from Rs 3,660 Cr in FY23 to Rs 9,000 Cr in FY30E (14% CAGR)
  • Water Softeners: Market expected to grow from Rs 1,000 Cr in FY23 to Rs 3,000 Cr in FY30E (17% CAGR)
  • Vacuum Cleaners: Market expected to grow from Rs 509 Cr in FY23 to Rs 3,000 Cr in FY30E (29% CAGR)
  • Air Purifiers: Market expected to grow from Rs 230 Cr in FY23 to Rs 1,100 Cr in FY30E (25% CAGR)

Company Overview

Eureka Forbes Limited is India's leading health and hygiene brand with over four decades of existence. The company has a multi-product portfolio encompassing water purification, vacuum cleaning and air purification, with direct, retail, e-commerce and institutional sales channels.

The company has an extensive pan-India service network with service availability across more than 19,500 pin codes and a digitally enabled service ecosystem.

Definitions

  • Adjusted EBITDA: Defined as PBT (before exceptional items) + Finance cost + Depreciation + Amortization + ESOP charge less other non-operating income
  • Adjusted PBT: Defined as Profit Before Tax excluding exceptional items and ESOP charges
  • Reported PAT: Includes one-time pre-tax gain of Rs. 19.5 Cr due to reversal of gratuity expense