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Earnings Call Transcript

Eureka Forbes Earnings Call Transcript: Key Takeaways

Eureka Forbes delivered 15.3% revenue growth in Q1 FY27, led by water purifiers, but margins were squeezed by higher commodity costs and aggressive ad-spends.

Guidance and delivery
Management target Revenue 100.0% FY30
Highlights
Revenue growth15.3% YoY growth to ₹701 crore; product business grew in late teens.
MarginsEBITDA margin fell to 10.5% due to higher input and ad costs.
Demand visibilityPositive momentum across all product categories supported by low penetration levels.
Management confidenceBalanced; focused on aggressive execution despite inflationary and currency volatility pressures.

Growth

Product business grew in late teens with double-digit volume growth in water purifiers and robotics.

Outlook

Management aims for 2x revenue and 3x EBITDA by FY30, expecting margins to stabilize YoY.

Risks

AMC renewals saw deferrals following price hikes; gross margins fell 131 bps due to currency/commodity headwinds.

Last quarter's promises, checked

Delivered

  • Guided double-digit product growth → delivered late teens (= BEAT)
  • Guided 6-7% price hike implementation → delivered 15.3% revenue growth (= BEAT)
  • Guided step-up in service revenue → delivered growth in line with AMC bookings (= BEAT)

Partly delivered

  • Guided volume-led growth → delivered volume growth but offset by margin squeeze (= PARTIAL)

Missed

  • Guided to hold margins at least → delivered 10.5% vs 13.2% prev quarter (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: EUREKAFORB. Summary written with AI assistance from the document.

Read the document ↗

Eureka Forbes Ltd: key numbers

Share price
₹370.85
Market cap
₹7,181 Cr
Revenue (annual)
₹2,709 Cr
Net profit (annual)
₹162.6 Cr
P/E (TTM)
39.7×Sector 45.9×
Promoter holding
62.55%-0.01% QoQ
FII holding
13.24%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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