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Earnings Call Transcript

Eureka Forbes Earnings Call Transcript: Key Takeaways

Q2 revenue +15% to ₹890 Cr; adj. EBITDA margin up 43bps to 13.6% on operating leverage. Management flags Q3 margin dip from commodity inflation, with price hikes post-Diwali.

Highlights
Revenue growthQ2 revenue +15% YoY to ₹890 Cr; H1 +15.1% to ₹1,590 Cr.
MarginsAdj. EBITDA margin 13.6%, +43bps YoY; gross margin down 138bps.
Demand visibilityFestive sell-out strong; water purifier QoQ growth over 30%.
Management confidenceBalanced-to-optimistic; flags commodity pressure and Q3 margin dip.

Growth

Revenue +15% YoY, volume-led; adj. EBITDA +18.8% via opex leverage, gross margin down 138bps.

Outlook

Calibrated 3-4% price hike mid-November; full-year margins aimed flat; no revenue guidance quantified.

Risks

Commodity inflation pressuring gross margins; Q3 margin dip; AMC/service revenue still weak; rising competition.

Last quarter's promises, checked

Delivered

  • A&SP ahead of revenue → Q1 other exp (incl A&SP) +21.4% vs rev +15.3% (= BEAT)
  • Opex leverage → Q2 opex +10.2% vs rev +15%, opex ratio -181bps (= BEAT)

Partly delivered

  • FY27 margins in line with FY26 → Q1 -46bps, Q2 +43bps; FY open (= PARTIAL)
  • Q2 service growth ≈ Q1 level → AMC/service 'still weak', no % disclosed (= PARTIAL)
  • Clear FY27 growth step-up → H1 +15.1%; FY26 base not in docs (= PARTIAL)

Missed

  • Healthy cash flows → Q2 net cash ₹304 Cr (Q1 ₹425 Cr); H1 op. cash flow negative (= MISS)
  • Gross margins 'absolutely intact' → Q1 -131bps, Q2 -138bps YoY (= MISS)
Source

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

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Eureka Forbes Ltd: key numbers

Share price
₹354.05
Market cap
₹6,857 Cr
Revenue (annual)
₹2,709 Cr
Net profit (annual)
₹162.6 Cr
P/E (TTM)
35.7×Sector 43.7×
Promoter holding
62.51%-0.04% QoQ
FII holding
13.22%Current quarter

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

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