Eureka Forbes Q3 FY26 Earnings Call Transcript Released

Eureka Forbes Limited has released the transcript of its Earnings Conference Call held on February 5, 2026. The call featured insights from Managing Director and CEO, Mr. Pratik Pota, and CFO, Mr. Gaurav Khandelwal.

Mr. Pota highlighted a resilient performance in Q3 FY26 despite a challenging macro environment, with revenue growing 8% year-on-year and adjusted EBITDA margin expanding by 57 basis points to 11.3%. He noted that a post-festive slowdown in consumer demand and elevated trade inventories, particularly in the e-commerce channel and Water Purifier category, weighed on growth. However, the company gained market share in Water Purifiers both sequentially and year-on-year. Emerging categories like Robotics and Air Purifiers showed strong growth, with air purifiers growing threefold. Service business continued its double-digit growth trajectory in AMC bookings.

Mr. Pota expressed confidence that the Q3 growth slowdown was a one-off event due to temporary channel-specific issues and expects growth to normalize from Q4 onwards. The company aims for a longer-term ambition of achieving 2x revenue and 3x EBITDA by FY30. The company is focusing on growing the water category through penetration and premiumization, investing in newer categories, enhancing customer experience in Service, and leveraging its installed customer base for D2C programs.

Mr. Khandelwal provided financial details, stating revenues of ₹645.4 crores, an 8% year-on-year increase. Adjusted EBITDA margins expanded to 11.3%, and pre-exceptional PAT grew by 11.9% to ₹39 crores. He mentioned a one-time pre-tax charge of ₹40.4 crores due to new labor codes, which is not expected to be recurring. Gross margins expanded by 331 basis points to 60.8%, driven by COGS programs and channel mix. Year-to-date FY26 revenue stood at ₹2,026.6 crores, an 11.1% year-on-year growth, with adjusted EBITDA margin at 11.9%. The company continues to invest in Advertising & Sales Promotion (A&SP) spends, which grew by 23.3% year-on-year.

During the Q&A, management addressed the temporary nature of the Q3 slowdown, expected Q4 growth to be ahead of YTD FY26 figures (11.1%), and discussed strategies for service growth, including tapping into the non-AMC filter market. They also elaborated on gross margin drivers, the impact of the economy segment, and capability-building investments in supply chain and IT. The company reiterated its strong market share in Water Purifiers despite new entrants and its commitment to defending and growing market share aggressively.