Q2 FY27 Financial Performance (Standalone Basis)

Revenue Performance:

  • Revenue from operations grew by 15.0% YoY to Rs. 889.6 Cr from Rs. 773.4 Cr in Q2 FY26
  • Product business revenue grew in high teens YoY, led by strong growth in Water Purifiers and Emerging Categories
  • Water Purifiers saw high-teens growth that was well ahead of category growth, leading to significant market share gains
  • Emerging categories of Robotics, Softeners and Air Purifiers continued their high growth trajectory on the back of new launches and category investments

Profitability Metrics:

  • Adjusted EBITDA grew 18.8% YoY to Rs. 120.7 Cr from Rs. 101.6 Cr in Q2 FY26
  • Adjusted EBITDA margin expanded by 43bps YoY to a lifetime high of 13.6% (from 13.1% in Q2 FY26)
  • Adjusted PBT (Profit Before Tax excluding exceptional items and ESOP charges) grew by 17.8% YoY to Rs. 104.7 Cr from Rs. 88.9 Cr
  • Reported Profit After Tax (PAT) grew by 19.1% YoY to Rs. 73.3 Cr from Rs. 61.6 Cr
  • Reported PAT margin came in at 8.2%

Expense Analysis:

  • Employee Benefit Expenses increased 13.7% YoY to Rs. 91.0 Cr from Rs. 80.0 Cr
  • Service Charges increased 12.8% YoY to Rs. 95.6 Cr from Rs. 84.8 Cr
  • Other Expenses increased 7.3% YoY to Rs. 183.1 Cr from Rs. 170.6 Cr
  • Total Expenses as percentage of Revenue improved by 181bps YoY to 41.6%
  • Gross margin declined by 138 basis points YoY to 55.1%, primarily due to significant increase in commodity costs

Other Financial Items:

  • ESOP Charge: Rs. 6.6 Cr (up 15.5% YoY from Rs. 5.7 Cr)
  • Finance Cost: Rs. 2.1 Cr (down 6.4% YoY from Rs. 2.2 Cr)
  • Depreciation: Rs. 11.2 Cr (up 25.0% YoY from Rs. 8.9 Cr)
  • Amortization: Rs. 8.8 Cr (up 19.1% YoY from Rs. 7.4 Cr)
  • Other Income: Rs. 6.1 Cr (up 4.1% YoY from Rs. 5.9 Cr)

H1 FY27 Financial Performance (Standalone Basis)

Revenue Performance:

  • Revenue from operations growth stepped up to 15.1% YoY to Rs. 1,590.4 Cr from Rs. 1,381.2 Cr
  • Driven by high-teens growth in products business

Profitability Metrics:

  • Adjusted EBITDA increased by 15.5% YoY to Rs. 194.6 Cr from Rs. 168.5 Cr
  • Adjusted EBITDA margin remained flat YoY at 12.2%
  • Adjusted PBT increased by 13.6% YoY to Rs. 166.2 Cr from Rs. 146.2 Cr
  • PAT (pre-exceptional items) grew by 14.1% YoY to Rs. 114.2 Cr from Rs. 100.1 Cr
  • Reported PAT increased by 28.6% YoY to Rs. 128.8 Cr from Rs. 100.1 Cr
  • Reported PAT margin at 8.1%

Exceptional Item:

  • Q1 FY27 included one-time pre-tax gain of Rs. 19.5 Cr due to reversal of gratuity expense

Balance Sheet and Liquidity Position

  • Net Cash position: Rs. 254 Cr
  • Net Surplus: Rs. 304 Cr
  • ROCE: >350%
  • Credit Rating upgraded by Crisil from Crisil AA-/Positive to Crisil AA/Stable

Management Commentary

Mr. Pratik Pota, MD and CEO, Eureka Forbes Limited commented: \"We delivered another strong quarter in Q2 FY27 with a revenue growth of 15.0% YoY. Growth was broad-based across all channels and categories. Water Purifiers continued their strong performance with high-teens growth and healthy market share gains, while our emerging categories sustained their growth momentum.\"

\"Our focus on stepping up growth is translating into results. Revenues grew 15.1% YoY in H1 FY27 accelerating from 12.7% in H1 FY26. Importantly, we delivered this strong growth along with continued improvement in profitability. Despite significant inflationary pressures, EBITDA margins reached a lifetime high of 13.6%, expanding by 43 bps YoY. This reinforces the strength of our operating model and our ability to balance investments for growth with disciplined execution and operating leverage.\"

\"Our strong H1 performance strengthens our confidence in delivering a meaningful step-up in growth in FY27. More importantly, the broad-based momentum across our core business, emerging categories and channels gives us increasing confidence in our ability to sustain a higher growth trajectory over the medium term. With continued discipline on execution, we remain focused on delivering sustainable profitable growth over the long term.\"

Strategic Initiatives

Product Portfolio Expansion:

  • Launch of Industry-First 4X-Product Range in Water Purifiers
  • Several new launches under the brand Aeroguard for Air Purifiers
  • Growth in Emerging Categories (Robotics, Water Softeners, Air Purifiers)

Marketing and Distribution:

  • New Influencer Led Marketing Campaign launched for the first time
  • Elevated brand visibility across modern retail
  • Omni-channel presence across direct sales, general trade, modern trade, digital and e-commerce channels

Service Network:

  • Service availability across more than 19,500 pin codes
  • Digitally enabled service ecosystem
  • Driving filter awareness and service levels

Industry Outlook

The presentation highlighted supportive macro factors and growth potential:

  • Growing incomes with middle class as fastest growing segment
  • Urbanization increasing from 31% in 2011 to 40% by 2036
  • Female labor force participation rate increased from 33% in 2022 to 42% in 2024
  • Piped water coverage increased from 16.8% in 2019 to 77.2% households in 2024
  • 99.5% population has access to electricity

Market Growth Projections (2023-2030E):

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

Company Overview

Eureka Forbes Limited is India's leading health and hygiene brand with over four decades of existence. The company's product portfolio encompasses water purification, vacuum cleaning and air purification. It has direct, retail, e-commerce and institutional sales channels, an inventive business partner network and one of the most expansive service networks across India.