Chairman's Message
Dear Shareholders,
I am pleased to share with you our Integrated Annual Report for FY26. Over the last three years, the Company has undergone a significant transformation anchored in sharper strategic focus, disciplined execution, and a continued commitment to profitable and sustainable growth. The results of these efforts are now visible not only in the Company’s financial performance, but also in the quality, resilience, and breadth of the business.
This year marked an important milestone in the journey of Eureka Forbes. FY26 was a defining year in the evolution of Eureka Forbes, a year that in many ways, marked the transition of the Company from a successful turnaround to a business prepared for take-off.
Over the last three years, the Company has undergone a significant transformation anchored in sharper strategic focus, disciplined execution, and a continued commitment to profitable and sustainable growth.
Macro-Economic Environment Remains Challenging
FY26 was characterised by a mixed global macroeconomic environment, with continued geopolitical tensions, most notably the escalating crisis in West Asia that disrupted energy supplies, strained global supply chains, and contributed to volatile commodity prices. Rising commodity inflation and currency depreciation led to rising input costs that weighed on margins across industries.
Against this backdrop, India continued to stand out as the fastest-growing major economy globally, supported by strong infrastructure investments, domestic consumption, and policy continuity. As per the Provisional Estimates released by the National Statistics Office, Ministry of Statistics and Programme Implementation, real GDP is estimated to have grown by 7.7% in FY26. Private final consumption expenditure grew steadily, underpinned by rural demand and a recovery in urban spending, while gross fixed capital formation expanded robustly, reflecting sustained investment activity across the economy.
Looking Back at FY26 Performance
FY26 marked another year of consistent delivery for Eureka Forbes, with continued momentum across revenue growth, operating margins, and consistent cash generation. The Company has now consistently demonstrated steady execution, leading to sustained growth and profitability improvement. More importantly, this performance reflects a resilient operating model with better visibility on earnings.
During the year, Eureka Forbes delivered revenue of ₹ 2,710 Crore, recording the second consecutive year of double-digit growth at 11.3%. Adjusted EBITDA grew to ₹ 332 Crore with margins expanding by 55 basis points to 12.2%, reflecting the third successive year of profitability improvement. Profit before exceptional items grew strongly, while free cash flow generation remained robust, enabling the Company to maintain a healthy net cash position. These outcomes are particularly encouraging because they demonstrate that growth and profitability are progressing in a balanced and sustainable manner.
What stands out is the structural nature of this transformation as the growth momentum is no longer dependent on one single category. Instead, it is being driven by a diversified portfolio across water purifiers, robotics, water softeners, and air purifiers. Equally important, the Company is now seeing stronger contributions across channels, thus creating a more balanced and resilient business model.
Strong Governance & Sustainability Focus
At Eureka Forbes, governance and sustainability continue to remain integral to the way we operate and create long-term shareholder value. The Board remains committed to maintaining the highest standards of corporate governance, transparency, ethical conduct, and risk management while ensuring balanced value creation for all stakeholders. Over the last few years, the Company has strengthened its governance frameworks, internal controls, compliance processes, and stakeholder engagement mechanisms to support a scalable and future-ready organisation.
Sustainability is also deeply embedded in the Company’s purpose and business model. Through its portfolio and health and hygiene products, Eureka Forbes contributes meaningfully toward improving health, safety, and quality of life for Millions of consumers. Every water purifier installed contributes towards safer drinking water for Indian households, while every air purifier provides access to clean air. Through its extensive service network and consumer reach across India, Eureka Forbes also creates meaningful livelihood opportunities for thousands of service technicians, and business partners. The Company remains focused on strengthening its sustainability agenda through responsible operations, efficient resource utilisation, product innovation, and building a service ecosystem that creates both economic and social impact across communities.
Structural Long-Term Growth Opportunity Intact
India continues to represent one of the most compelling long-term growth opportunities for health and hygiene-led consumer categories. Despite increasing awareness around safe drinking water, clean indoor air, and healthy living, category penetration across water purifiers, robotic cleaning, air purifiers, and water softeners remains extremely low compared to global benchmarks. At the same time, rapid urbanisation, rising disposable incomes, expanding middle-class aspirations, improving access to piped water and electricity, and growing health consciousness are fundamentally reshaping consumer behaviour across the country. As Millions of Indian households continue to upgrade toward trusted, technology-enabled solutions for health and hygiene, Eureka Forbes is uniquely positioned to benefit from these structural tailwinds through its strong brand equity, extensive service network, deep consumer reach, and leadership across core categories.
“The take-off phase will now focus on accelerating growth, scaling up emerging categories, deepening digital capabilities, and strengthening consumer engagement.”
The theme of this year’s Annual Report — Turnaround to Take-Off — reflects both pride in the progress achieved and confidence in the opportunities that lie ahead. The turnaround phase required rebuilding the business fundamentals for sustainable profitable growth. The take-off phase will now focus on accelerating growth, scaling up emerging categories, deepening digital capabilities, and strengthening consumer engagement.
As we enter the next phase of our journey, with an aim to double our business by FY30, we have laid a strong foundation for accelerated growth through targeted investments in innovation, technology, and talent. We have strengthened our innovation pipeline across our core and emerging categories, strengthened our digital and omnichannel capabilities, and sharpened our consumer-centric approach. Equally important, we have fostered a culture that embraces agility, accountability, and continuous improvement. With these growth enablers firmly in place, Eureka Forbes is well positioned to move from Turnaround to Take-Off, scaling new opportunities while creating sustainable long-term value for all stakeholders.
On behalf of the Board, I would like to express my sincere appreciation to our employees, partners, customers, shareholders, and all stakeholders for their continued trust and support. Their confidence has been instrumental in our progress and will continue to inspire us as we embark on the next phase of our journey.
Regards,
Arvind Uppal
Chairman