Profit After Tax (PAT): ₹37 crores, representing 22.3% growth year-on-year.
This marks the seventh consecutive quarter of year-on-year revenue growth.
Segment-wise Performance
Battery Business
Revenue growth of 11.9% year-on-year.
Alkaline Batteries: Volume growth of approximately 48%; market share within the alkaline segment expanded to 18%.
Carbon Zinc Batteries: Delivered volume growth commensurate with the industry; profitability protected through calibrated pricing and scale efficiencies.
Flashlight Business
Overall segment revenue declined by 6.7% due to delayed monsoon affecting conventional battery-operated flashlight demand.
Rechargeable Flashlights: Delivered over 20% revenue growth, supported by product innovation and premium offerings.
Introduced a hybrid flashlight (patent-applied) and the SHOR model with an animal alarm feature (100-decibel alarm with red UV strobe light) for farm protection.
Lighting Business
Revenue growth of 13.7%.
Benefited from strong demand and a stabilizing pricing environment after prolonged price erosion.
Healthy volume growth in higher-margin categories: emergency LED bulbs and electrical accessories (including wires and MCBs).
Operational and Strategic Updates
Jammu Facility: Commenced commercial production on 29th May 2026. The plant strengthens alkaline battery manufacturing capacity, improves operating leverage, and supports expansion into white labelling and export markets. Plant and machinery investment is approximately ₹90-95 crores.
GST Incentives: The company is in advanced discussions with the industries department for GST incentives under the NCSS scheme in Jammu. The scheme offers a GST refund equivalent to 3x the eligible plant and machinery investment over 10 years. Formal approval is pending.
Innovation: Launched India's first portable liquid mosquito vaporizer (patent-applied) and the Xtrabright emergency LED bulb offering double illumination during power cuts.
Market Share: Overall dry cell market share is 58% (primarily in carbon zinc). Alkaline market share is 18%, with a target to reach 25-30% in two years.
Raw Material and Cost Environment
Zinc prices remained elevated at around $3,500 per ton (compared to below $3,000 per ton for most of last year).
Other key raw materials (electrolytic manganese dioxide, electrodes, acetylene black, lighting components) also witnessed inflationary trends.
Management cited calibrated pricing actions and operational efficiencies as key to protecting margins.
Capital Structure and Debt
Debt stands at approximately ₹165 crores.
The company expects to become debt-free in the next 4-5 quarters, aided by operating cash flow and potential asset sales.
Noida Plant Sale: One plot sold; sale of the second plot is expected to close shortly. This is part of a manufacturing footprint rationalization strategy.
Regulatory and Compliance Matters
BIS Norms: Flashlight BIS implementation is complete on paper; full market adoption and compliance by non-branded players is ongoing. Eveready's production is fully BIS compliant.
Extended Producer Responsibility (EPR): Engaged in advanced dialogues with the Ministry of Environment and Climate Change and the Pollution Control Board regarding operational and pricing challenges. Initiatives include promoting used battery collection and awareness sessions.
CCI Matter: Next hearing scheduled for the last week of September 2026. Management cannot estimate a potential financial impact at this time.
Management Commentary and Outlook
Management remains optimistic about sustaining growth momentum through premiumization, distribution expansion, and innovation.
Commodity prices (especially zinc) and currency movements remain key watch areas; further price actions may be taken if needed to protect margins.
The company is internally deliberating its long-term strategy (including potential M&A) and plans to share a firm long-term plan in the next 2-3 quarters.
Q&A Highlights
Jammu Plant Margins: Expected to deliver a 10% gross margin improvement on alkaline products once stabilized.
Cannibalization: Minimal immediate cannibalization of carbon zinc by alkaline batteries is expected, as growth is driven by new high-drain devices (e.g., smart remotes, toys, medical devices).
Lighting Business Strategy: Focus on specific states and channels (general trade, electrical); leveraging synergies with battery distribution; hero products include emergency bulbs.
Competition: Key competitors in batteries include Panasonic, Nippo, and Duracell (in alkaline).
Corporate Governance
A director (unnamed) continues to receive a consulting fee of ₹2 crores, approved by the NRC and Board for strategic contributions.
