Eureka Forbes Q1 FY27 Revenue Jumps 15.3% to ₹701 Crore
Eureka Forbes reported Q1 FY27 revenue of ₹701 crore, up 15.3% YoY. Water purifiers grew by high teens, and emerging categories showed strong performance. Adjusted EBITDA margin was 10.5%. The company aims for a significant step-up in FY27 growth and expects full-year EBITDA margins in line with last year.
The announcement details solid revenue growth and a positive outlook, which is significant for investors. However, the slight decline in EBITDA margins and the impact of price increases on service bookings temper the immediate high impact.
The company reported strong revenue growth and positive momentum across key product categories, indicating a healthy start to the fiscal year. Despite margin pressures, the outlook for full-year growth remains confident.
Eureka Forbes Limited reported a strong start to FY27 with a 15.3% year-on-year revenue growth to ₹701 crore in Q1 FY27. This growth was broad-based across product categories, particularly in water purifiers, which saw high teens growth driven by double-digit volume increases. Emerging categories like robotics and water softeners also delivered robust performance. The product business grew in the late teens, with strong contributions from retail, direct sales, and e-commerce channels.
In the water purifier segment, growth was fueled by strong momentum in the economy range, an expanded stainless-steel product line, and premium offerings like Hot, UTC, and IoT. The company gained market share due to its performance outpacing the category.
Robotic vacuum cleaners experienced strong growth, attributed to increasing premiumization and the shift towards fully automatic cleaning products. A new campaign featuring Shraddha Kapoor was launched to boost category adoption. Water softeners also saw significant double-digit growth.
Service revenue growth remained consistent with recent quarters, though price increases on Annual Maintenance Contracts (AMCs) led to some moderation in booking growth. The company continued to focus on awareness campaigns for genuine Aquaguard filters and implemented digital interventions to enhance customer experience.
Adjusted EBITDA margin for the quarter was 10.5%, a decrease of 46 basis points year-on-year, primarily due to moderated gross margins and increased growth investments. However, underlying profitability drivers remain strong. The company expects full-year EBITDA margins to be broadly in line with the previous year and is confident of a significant step-up in FY27 full-year growth, supported by healthy momentum across all product categories and future plans.
Financially, gross margins stood at 58.4%, lower by 131 basis points year-on-year due to higher commodity costs and adverse currency movements. Employee costs increased by 10.7% to ₹90 crore, and ESOP charges rose by 16.2% to ₹6.6 crore. Service charges grew by 2.7% to ₹83 crore. Other expenses, including A&SP, increased by 21.4% to ₹162 crore, largely driven by investments in in-store presence.
Adjusted EBITDA grew by 10.5% to ₹74 crore, with adjusted EBITDA margins at 10.5%. Adjusted PBT was ₹61 crore, and reported PAT grew by 44% to ₹55 crore. Including a one-time gain of ₹19.5 crore from a gratuity expense reversal, pre-exceptional PAT grew by 6.1% to ₹41 crore. The company ended the quarter with a net cash surplus of ₹425 crore.
The company also discussed its long-term vision, aiming for 2x revenue and 3x EBITDA growth from FY25 to FY30. The Direct-to-Consumer (D2C) engine is a key focus area, leveraging its extensive customer data and digital platform to drive cross-selling and faster upgrades.
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Eureka Forbes Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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