Mumbai: Eureka Forbes delivered a strong set of numbers for the second quarter of FY26, posting double-digit revenue growth and notable improvement in profitability despite elevated advertising and promotional spending. The company reported revenue of ₹773 crore, up 14.9% YoY, driven by broad-based momentum across core categories and channels.
Adjusted EBITDA crossed the ₹100-crore mark, with margins improving 162 bps to 13.1%, even as advertising and sales promotion spend rose 21% YoY. Net profit stood at ₹61.6 crore, a solid 32% YoY increase, translating into an 8% PAT margin. Gross margin remained stable at 56.5%, witnessing only a seasonal QoQ dip.
Water purifiers continued to anchor the business with strong growth, aided by the rapid scale-up of two-year filter models and rising demand in the premium segment above ₹20,000. The IoT-enabled range also gained meaningful traction. The robotics and cleaning segment remained a standout, with robotic devices now accounting for 60% of total vacuum cleaner sales, supported by margin-accretive premium models. Air purifiers and water softeners saw healthy growth, buoyed by AQI-driven demand and effective D2C cross-selling, while the company has additionally integrated pet-care use cases within its cleaning-tech ecosystem.
Service revenue and AMC bookings grew in high teens, with multi-year AMC products improving customer lock-in. The company highlighted that AMC costs are recognized upfront, while revenues are amortized over the contract period.
Omnichannel distribution remained balanced, with modern trade and e-commerce emerging as the strongest contributors. E-commerce reached its highest-ever share, supported by a robust D2C engine comprising 15 million customer records and over 1.5 million monthly active app users. The subscription model is ready for rollout but remains on hold for now.
Margins benefitted from procurement efficiencies and category mix, while IT spends were kept in check. Working capital was stretched in H1 due to MT and e-commerce payment cycles and transition-related adjustments under GST 2.0, but the company expects normalization in the second half.
Eureka Forbes expects double-digit growth to continue and margins to improve from Q3 onwards, with capital allocation favoring growth investments. Key risks include demand softness, GT channel weakness, receivables pressure from channel mix shifts, AMC revenue recognition lag, dependence on imports, and the ongoing stabilization of GST 2.0 processes.
