FINANCIAL CAPITAL
Sustained Profitable Growth
Eureka Forbes’ financial capital remains integral to its ability to drive sustainable and profitable growth, strengthen its market leadership position, and create long-term shareholder value. The Company’s financial strategy is anchored in disciplined capital allocation, prudent resource utilisation, and a balanced approach towards growth investments and profitability enhancement.
The Company’s consistent focus on improving revenue quality, enhancing margins, and optimising working capital has contributed to a stronger financial position. The Company has sustained double-digit revenue growth momentum for two years and delivered Adj. EBITDA margin expansion for three consecutive years, reflecting the effectiveness of the Company’s transformation initiatives and reinforcing confidence in the robustness of its financial framework. Going forward, Eureka Forbes remains committed to maintaining a strong financial foundation that supports scalable growth, innovation, and enduring value creation.
11.3%
Revenue Growth in FY26
Double-Digit Growth for 2 Consecutive Years
12.2%
FY26 Adjusted EBITDA Margin
Margin Expansion for 3 Consecutive Years
₹ 443 Crore
Highest Ever Net Surplus As on March 31, 2026
Strengthening Balance Sheet with Net Surplus Position
4 Credit Rating
Upgrades in 3 Years
CARE: AA; Stable
CRISIL: AA-; Positive
Strong Business Fundamentals Driving Profitable Growth
Multiple Growth Drivers
Multiple categories with a long runway for growth; emerging categories continue to gain salience; balanced channel mix
Multiple Margin Drivers
Resilient gross margins, benefit of operating leverage, several cost
Resilient Gross Margins
Gross margins up 46 bps in FY26 to 58.8%; remain range-bound for four years at 58% to ~60%
Operating Leverage
818 bps improvement in operating expenses (excluding A&SP spends) in
Growth Investments
A&SP spends up by ₹ 104 Crore (+171 bps) over past three years; Capex at ₹ 84 Crore in FY26 vs. FY25 at ₹ 55 Crore
Strong Cash Flow Generation
Net Surplus at lifetime high at ₹ 443 Crore
Multiple Growth Drivers
Eureka Forbes’ diversified business portfolio, primarily comprising water purifiers, vacuum cleaners, water softeners and air purifiers, provides multiple avenues for sustainable growth. Strategic focus on product innovation and customer-centric offerings has strengthened the Company’s ability to capture emerging opportunities across categories.
Eureka Forbes has built a strong omnichannel presence across direct sales, general trade, modern retail, B2B, D2C, and E-commerce platforms, enabling the Company to effectively serve evolving consumer needs across markets. By leveraging multiple channels, Eureka Forbes has created a balanced and resilient business model that supports sustainable growth, deeper market penetration, and improved customer accessibility
Note:
- 1. Other Revenue includes Air Purifiers, Water Softeners and B2B Water Products.
- 2. Service Revenue includes Sale of AMC, Filters, and Spares.
Margin Expansion: Multiple Drivers
Adjusted EBITDA Margin Drivers
The improvement in profitability over the last three years is one of the defining achievements of the Company’s transformation journey. Adjusted EBITDA grew from ₹ 132 Crore in FY23 to ₹ 332 Crore in FY26, scaling 2.5x in three years. Adjusted EBITDA margins expanded from 6.3% in FY23 to 12.2% in FY26, despite a scale-up in growth investments.
This improvement in margins is structural and is the
outcome of diverse drivers:
FY24: Rationalisation of
operating expenses
FY25: Operating leverage
FY26: Gross margin expansion
Resilient Gross Margin Profile
The Company has maintained a resilient gross margin profile through a strong product mix, operational efficiencies, and disciplined cost management. As part of its direct cost optimisation agenda, the Company continued to advance a structured Cost of Goods Sold (COGS) saving program focused on value engineering, strategic sourcing, and manufacturing optimisation. Several value engineering initiatives were undertaken to redesign products and components with the objective of delivering the product at a lower cost without compromising on the quality. Concurrently, supplier negotiations and sourcing interventions helped improve procurement economics and strengthen supply chain competitiveness.
Operating Leverage
Eureka Forbes continues to benefit from operating leverage driven by scale expansion, changing product mix, and enhanced operational efficiencies. As revenues grow across categories, the Company is able to optimise fixed costs, strengthen margin performance, and improve overall profitability. Its continued focus on productivity initiatives supports operating leverage, enabling sustainable earnings growth and stronger financial resilience over the long term.
Accelerating Growth Investments
The Company continued to accelerate growth investments, with a sustained focus on building category awareness and enhancing long-term capabilities to build a future-ready operating platform. Advertising and Sales Promotion (A&SP) expenses increased by ₹ 104 Crore over three years, representing a CAGR of 15.6%, while A&SP intensity expanded from 9.1% in FY23 to 10.8% of revenue. The increased investments supported brand-building initiatives, deeper consumer engagement, and targeted campaigns across key categories.
In parallel, capital expenditure increased significantly from ₹ 11 Crore in FY23 to ₹ 84 Crore in FY26, reflecting the Company’s focus on building scalable infrastructure and capabilities to support future growth. Investments were directed towards product innovation, technology platforms, digital transformation initiatives, and service infrastructure enhancement. Capex intensity increased from 0.5% of revenue in FY23 to 3.1% in FY26, underscoring the Company’s commitment to investing ahead of the curve to drive long-term growth.
Strong Cash Flow Generation
Consistent cash flow generation has strengthened Eureka Forbes’ financial flexibility and supported investments in strategic priorities. A disciplined approach towards working capital management and capital allocation continues to enhance liquidity, enabling the Company to pursue long-term growth opportunities while maintaining financial resilience. The Company continued to demonstrate strong cash generation and capital efficiency, underpinned by a resilient business model, disciplined capital allocation, and efficient working capital management. Its ability to consistently convert earnings into cash has strengthened financial flexibility and provided the resources required to fund growth initiatives while maintaining a robust balance sheet.
Free Cash Flow (FCF) increased to ₹ 237 Crore in FY26, representing a cash conversion ratio of 148% of PAT. The Company’s FCF generation has consistently exceeded reported profits, reflecting the strength of its operating cash flows and prudent working capital management. This strong cash generation capability enables the Company to invest in strategic priorities while preserving financial resilience.
| Particulars (in ₹ Crore) | FY26 | FY25 |
|---|---|---|
| Free Cash Flows (FCF) | 237 | 214 |
| Profit After Tax | 160 | 163 |
| Free Cash Flow/Profit After Tax | 148% | 131% |
| Сарех | 84 | 55 |
| Free Cash Flow/Capex | 2.8x | 3.9x |
Free Cash Flow (FCF) is defined as Cash generated from Operating Activities-Finance cost -Lease liability payments + Other income
The Company ended FY26 with a net cash surplus of ₹ 443 Crore, providing substantial financial flexibility to pursue growth opportunities, invest in innovation and customer experience, and navigate evolving market conditions. Supported by strong profitability, disciplined capital allocation, and efficient asset utilisation, the Company delivered a Return on Capital Employed (RoCE) in excess of 100%, underscoring the quality of its earnings and the strength of its underlying business fundamentals.
Key Financial Metrics
*Adjusted (Adj.) EBITDA is defined as PBT (before exceptional items) + Finance cost + Depreciation + Amortisation + ESOP Charge less other non-operating income
** Reported PAT at ₹ 17 Crore, ₹ 92 Crore, ₹ 163 Crore, and ₹ 160 Crore for FY23, FY24, FY25 and FY26 respectively
*** Diluted EPS (Pre-Exceptional) at ₹ 9.78 for FY26