Eureka Forbes Shines in Q2 FY26: A Deep Dive into Growth and Strategy

Eureka Forbes Limited, a leading name in India's health and hygiene sector, has reported a stellar performance for the second quarter of Fiscal Year 2026. Despite an uncertain and evolving external environment, the company delivered robust standalone financial results, showcasing strong growth across its product and service segments. The company's revenue from operations for Q2 FY26 stood at Rs. 773.4 Crore, marking a significant 14.9% year-on-year (YoY) increase. This impressive top-line growth was complemented by a remarkable improvement in profitability, with Adjusted EBITDA reaching a lifetime high of Rs. 101.6 Crore, up 31.1% YoY, and an Adjusted EBITDA margin of 13.1%. Profit After Tax (PAT) also saw a substantial rise of 32.0% YoY, closing the quarter at Rs. 61.6 Crore.

Strategic Pillars Drive Performance

The company's success in Q2 FY26 is a testament to its focused transformation strategy, which emphasizes category penetration, innovation, and service excellence. The products business, a key growth driver, achieved high-teens growth, marking its eighth consecutive quarter of double-digit expansion. This growth was broad-based, with all categories performing well. In the water purification segment, the scale-up of their 2-year filter life range has significantly reduced the cost of ownership, attracting a substantial number of first-time category entrants. This initiative aligns with the company's vision to expand market penetration and make its products more accessible.

The cleaning category, particularly the Robotics segment, emerged as a powerful growth engine. Robotics now contributes nearly 60% to vacuum cleaner sales, driven by premium additions to the portfolio like the Forbes SmartClean Auto Bin and the Forbes SmartClean Fully Automatic Cleaning Station. The company's strategic move to expand the Robotics range in offline channels and introduce multilingual support has been instrumental in driving category adoption and strong sales traction.

Financial Highlights (Standalone Basis)

Note: Adj. EBITDA is defined as PBT (before exceptional items) + Finance cost + Depreciation + Amortization + ESOP charge less other non-operating income. Adj. PBT is defined as Profit Before Tax excluding exceptional items and ESOP charges.

Service Turnaround and Customer Experience

The service business continued its impressive turnaround, gaining significant momentum with double-digit growth in AMC bookings. This acceleration was driven by both increased volumes and higher Average Selling Prices (ASPs), fueled by a greater mix of multi-year AMCs, which enhances customer retention. The company's focus on improving customer experience has yielded positive results, with service levels reaching lifetime highs. Management highlighted that customer satisfaction scores for installations and complaints have reached all-time highs, underscoring their commitment to operational excellence.

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