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Eureka Forbes Q3 FY26 Revenue Up 8% to ₹645.4 Cr; Targets 2x Revenue by FY30
Eureka Forbes reported an 8% YoY revenue growth to ₹645.4 crores in Q3 FY26, despite a macro-driven slowdown in the water purifier segment post-festive season. Adjusted EBITDA margins expanded by 57 bps to 11.3%, supported by a significant 331 bps improvement in gross margins to 60.8%. The company recorded a one-time exceptional charge of ₹40.4 crores related to new labor codes, but remains optimistic with a long-term goal to double revenue and triple EBITDA by FY30. Emerging categories like Air Purifiers grew 3x, and AMC bookings saw double-digit growth for the third consecutive quarter.
Key Highlights
Revenue grew 8% YoY to ₹645.4 crores, while YTD growth stands at 11.1% reaching ₹2,026.6 crores.
Adjusted EBITDA margin expanded by 57 bps to 11.3% despite a 23.3% increase in A&SP spends.
Gross margins improved by 331 bps YoY to 60.8% driven by institutionalized COGS optimization programs.
Air Purifier business grew 3x YoY, and emerging categories like Robotics and Softeners sustained strong momentum.
Management outlined a long-term ambition to achieve 2x revenue and 3x EBITDA by FY30.
💼 Action for Investors
Investors should focus on the company's ability to maintain gross margins above 60% while scaling emerging categories. The temporary inventory buildup in e-commerce is expected to normalize in Q4, making it a key quarter to watch for growth recovery.
Eureka Forbes Q3 FY26: Revenue Up 8% to Rs 645 Cr, Adj. EBITDA Margin Expands to 11.3%
Eureka Forbes reported a resilient Q3 FY26 with revenue growing 8% YoY to Rs 645.4 Cr, despite a slowdown in the water purifier segment due to high channel inventory. Adjusted EBITDA margins expanded by 57 bps to 11.3%, supported by strong gross margins of 60.8% and a turnaround in the service business. While reported PAT was hit by a one-time Rs 40.4 Cr charge for new Labour Codes, adjusted PAT grew 11.9% to Rs 39.0 Cr. The company's growth was bolstered by a 3x surge in Air Purifier sales and continued momentum in Robotics.
Key Highlights
Revenue from operations grew 8.0% YoY to Rs 645.4 Cr, led by Robotics and Air Purifiers.
Adjusted EBITDA increased 13.7% YoY to Rs 73.2 Cr with margins expanding 57 bps to 11.3%.
Air Purifier segment witnessed breakout growth, scaling 3x YoY due to high demand.
Service business saw the third consecutive quarter of double-digit AMC booking growth.
Net surplus reached a record Rs 300 Cr, with a credit rating upgrade to CARE AA (Stable).
💼 Action for Investors
Investors should focus on the operational turnaround and margin expansion rather than the one-time exceptional loss related to labor codes. The strong growth in non-water categories like Robotics and Air Purifiers provides a diversified growth cushion against seasonal water purifier slowdowns.
Eureka Forbes Q3 Revenue Up 8% to Rs 645 Cr; Adj. EBITDA Margins Expand to 11.3%
Eureka Forbes reported a resilient Q3 FY26 with revenue growth of 8% YoY to Rs 645.4 Cr, driven by a 3x surge in Air Purifiers and strong momentum in Robotics. While the core Water Purifier segment faced headwinds from high channel inventory, the company expanded its Adjusted EBITDA margin by 57 bps to 11.3% through gross margin improvements. Profitability was significantly impacted by a one-time exceptional charge of Rs 40.4 Cr related to the implementation of new Labour Codes, though PAT before this item grew 11.9% YoY to Rs 39.0 Cr. The company maintains a strong balance sheet with a record net surplus of Rs 300 Cr and a credit rating upgrade to CARE AA.
Key Highlights
Revenue from operations increased 8.0% YoY to Rs 645.4 Cr, with Air Purifier sales growing 3x YoY.
Adjusted EBITDA grew 13.7% YoY to Rs 73.2 Cr, with margins expanding 57 bps to 11.3%.
Reported PAT fell 74.2% YoY to Rs 9.0 Cr due to a one-time Rs 40.4 Cr exceptional charge for new Labour Codes.
Service business achieved its third consecutive quarter of double-digit AMC booking growth.
Net surplus reached a record high of Rs 300 Cr, and credit rating was upgraded to CARE AA (Stable).
💼 Action for Investors
Investors should look past the one-time accounting charge for labour codes and focus on the strong operational performance and margin expansion. The successful scaling of Robotics and Air Purifiers demonstrates a healthy diversification of growth drivers beyond the core water business.
Eureka Forbes Q3 Revenue Up 8% YoY; PAT Impacted by ₹40.4 Cr One-time Labour Code Provision
Eureka Forbes reported a steady 8% YoY growth in revenue from operations to ₹645.4 crore for Q3 FY26. However, Net Profit (PAT) saw a significant decline to ₹9.0 crore compared to ₹34.8 crore in the previous year, primarily due to a one-time exceptional charge of ₹40.4 crore related to the new Labour Codes. Excluding this exceptional item, the operational Profit Before Tax grew by 12.5% YoY to ₹52.8 crore, reflecting improved underlying business performance.
Key Highlights
Revenue from operations grew 8% YoY to ₹645.4 crore, though it declined sequentially from ₹773.4 crore in Q2.
Profit Before Exceptional Items and Tax increased 12.5% YoY to ₹52.8 crore, showing operational resilience.
A one-time exceptional expense of ₹40.4 crore was recognized for incremental retiral benefits under new Labour Codes.
9M FY26 revenue reached ₹2,026.6 crore, marking an 11% growth over the corresponding period last year.
Employee benefit expenses for the nine-month period include a non-cash ESOP charge of ₹17.1 crore.
💼 Action for Investors
Investors should focus on the 12.5% growth in operational profit rather than the headline PAT, which was distorted by a non-recurring regulatory provision. The underlying revenue growth remains healthy, making the current dip a potential point to monitor for long-term recovery.
Eureka Forbes Receives Interim Relief from MP High Court in ₹16.22 Crore GST Dispute
Eureka Forbes Limited has obtained an interim stay from the Madhya Pradesh High Court regarding a tax demand of ₹16.22 crore plus penalties. The demand, issued by the CGST & Central Excise Bhopal, relates to alleged excess Input Tax Credit and short payment of taxes for the period FY 2018-19 to FY 2022-23. The court has ordered that no coercive action be taken against the company, provided they deposit 10% of the tax demand. The company is currently in the process of depositing this amount and does not expect a material impact on operations at this stage.
Key Highlights
Madhya Pradesh High Court stays coercive action against a ₹16.22 crore GST demand.
Dispute involves alleged excess Input Tax Credit and short tax payments from FY 2018-19 to FY 2022-23.
Company is required to deposit 10% of the tax demand (approximately ₹1.62 crore) to maintain the stay.
Management states no material impact on financials or operations is currently anticipated.
💼 Action for Investors
Investors should monitor the final outcome of the writ petition as the ₹16.22 crore liability remains a contingent risk, though the interim stay is a procedural positive.
CRISIL Revises Eureka Forbes Outlook to Positive; Reaffirms 'AA-' Rating
CRISIL Ratings has revised the outlook for Eureka Forbes Limited from 'Stable' to 'Positive', signaling a potential for a credit rating upgrade in the near future. The agency also reaffirmed the company's Corporate Credit Rating at 'CRISIL AA-'. This revision suggests an improvement in the company's financial profile and creditworthiness. A positive outlook typically indicates that the company's operational performance and debt-servicing capabilities are strengthening.
Key Highlights
CRISIL Ratings revised the outlook to 'Positive' from 'Stable'
Corporate Credit Rating reaffirmed at 'CRISIL AA-'
Intimation issued under Regulation 30 of SEBI Listing Regulations
Reflects improved financial stability and credit profile for the company
💼 Action for Investors
Investors should view this as a positive signal regarding the company's balance sheet strength. Monitor for a formal rating upgrade in the coming quarters which could lower future borrowing costs.