Conference Call with Eureka Forbes Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Consumer Electronics company Eureka Forbes announced Q1FY26 results Revenue from operations grew 9.9% YoY to Rs 607.7 crore in a soft demand environment. Double-digit volume and value growth powers product portfolio; product business has now grown in double-digits for 7 successive quarters. Broad-based water purifier growth in both economy & premium segments. Vacuum cleaner performance led by 52% YoY growth in Robotics. Service business saw a turnaround with double-digit growth in service bookings, driven by volume & ASP. Robust Adj. EBITDA margin at 11.0% (11.5% in Q1FY25) despite continuing growth investments; operating leverage benefit of 183bps YoY, funded increase in service charge, and growth spends. Adj. PBT (before exceptional items and ESOP) increased 14.2% YoY to Rs 57.3 crore from Rs 50.2 crore in Q1FY25. Profit After Tax increased 24.1% YoY to Rs 38.5 crore from Rs 31.0 crore in Q1FY25. Pratik Pota, MD, and CEO, Eureka Forbes, said: “In an extremely challenging demand environment, we are proud of the solid, all-around performance delivered by EFL. Revenues grew by 9.9% on the back of double-digit growth in our product portfolio, in both volume and value. Profitability continued to improve, and Profit After Tax grew by 24.1%. Our Water Purifiers category saw strong growth in both the Economy and Premium segments. The horizontal deployment of Water Purifiers with 2-year filter life is a game-changer as it reduces lifetime ownership cost, we are confident that this will drive help penetration and growth. The Vacuum Cleaner category also saw strong growth driven by a surge in the sales of our Robotics portfolio. Our early conviction and bet on this category is now yielding strong results, and we believe that this segment will continue to scale in the future. One emerging bright spot last quarter was that our Service business turnaround picked up pace with a double-digit growth in service bookings. We have taken many initiatives in Service which are now beginning to bear results, and we are confident of sustaining this growth in the periods ahead. As we look forward to the third year of our transformation, we could not be more excited about what lies ahead. Our categories have low penetration and offer immense potential, and we are confident that we have the right strategy and set of plans to win in the market and deliver sustained and profitable growth in the future.” Result PDF
Consumer Electronics company Eureka Forbes announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue from operations grew 10.8% YoY to Rs 612.5 crore. Continuing businesses grew marginally higher at 10.9% YoY. Adjusted (Adj.) EBITDA increased 28.8% YoY to Rs 79.7 crore from Rs 61.9 crore in Q4FY24; Adj. EBITDA margin improved 183bps YoY to 13.0%. Margins improved YoY in every single quarter of FY25. Adj. PBT (before exceptional items and ESOP) increased 39.9% YoY to Rs 68.0 crore from Rs 48.6 crore in Q4FY24. Profit After Tax increased 137.5% YoY to Rs 50.8 crore from Rs 21.4 crore in Q4FY24. (Adj. PAT pre-ESOP increased 77.3% YoY to Rs 52.3 crore from Rs 29.5 crore in Q4FY24) FY25 Financial Highlights: Revenue from operations grew 11.3% YoY to Rs 2,436.1 crore. Continuing businesses grew higher at 12.0% YoY. (FY24 growth : 7.9% and FY23 growth : 2.2%) Adjusted (Adj.) EBITDA increased 25.9% YoY to Rs 285.0 crore from Rs 226.3 crore during FY24; Adj. EBITDA margin improved 136bps YoY to 11.7%. (FY24 margin : 10.3% and FY23 margin : 6.3%) Profit After Tax increased 78.4% YoY to Rs 163.3 crore from Rs 91.5 crore during FY24. (FY23 : Rs 17.1 crore) PAT up ~10x in 2 years Adj. PAT (pre-ESOP) increased 52.4% YoY to Rs 179.8 crore from Rs 118.0 crore in FY24 Commenting on the Q4FY25 & FY25 performance, Pratik Pota, MD, and CEO, Eureka Forbes said, “We are pleased to exit the second full year of transformation with yet another quarter of double-digit growth and lifetime high profitability. In Q4, continuing business revenue grew by 10.9% YoY, and this was the sixth successive quarter of double-digit growth. Led by operating leverage, EBITDA margins touched 13% for the first time. The momentum in our product business sustained and our innovations and growth investments helped the products grow in high teens. Stepping back and looking at the full year picture, the impact of transformation initiatives is now visible on multiple fronts. Growth stepped up from 2.2% in FY23 to 7.9% in FY24 and now to 12.0% in FY25 on the back of strong growth in our product business. Margins have expanded from 6.3% in FY23 to 10.3% in FY24 and now to 11.7% in FY25. The FY25 margin expansion is after a 25% YoY increase in growth investments. Net surplus is at Rs 284 crore. In terms of capabilities, we have reclaimed thought leadership on innovations, our customer metrics are at an all-time high and our cost program is generating fuel for growth. Looking ahead, our focus will be on driving service revenue. Several transformation initiatives have been under way, and I am pleased to report that we are seeing green shoots in our service revenue. At the same time, we will stay the course on innovations, step up our growth investments further, and drive margin improvement. The progress we have achieved in two years of our transformation and with the momentum of sustained double-digit growth and lifetime high margins in Q4 give us the confidence and the energy to drive sustained profitable growth in the year ahead.”. Result PDF