Eureka Forbes targets water share with four-year warranty

Eureka Forbes (EFL) says Grow Water revenue increased in the high teens, led by volumes from the economy segment and its stainless-steel range. EFL is supporting that market-share claim with a 4X Aquaguard range carrying a four-year unconditional warranty, with zero stated filter, spares and service costs and no annual maintenance contract requirement.

How is EFL growing its water-purifier business?

EFL says its Grow Water business delivered high-teens revenue growth led by volumes. The company identifies the economy segment and the stainless-steel product range as the drivers, and says it achieved significant market-share gains, although it does not disclose the starting share, ending share or the gain in percentage points.

The presentation places this growth within its Grow Water strategy, which has two stated levers: penetration and premiumization. The economy segment is a stated growth contributor, while premiumization is a separate strategic objective, so the source does not quantify how revenue growth was split between entry-level, stainless-steel or premium products.

EFL's broader transformation strategy is to re-imagine the company as a direct-to-consumer, or D2C, health and hygiene technology leader. Its stated purpose is to provide access to safe and healthy water, clean earth and pure air, with water growth sitting alongside convenient cleaning, air products, service and D2C commerce.

The water strategy is being executed alongside higher growth spending. EFL says year-on-year spending increased through a scaled-up in-store presence and new marketing campaigns, while adjusted earnings before interest, tax, depreciation and amortisation, or adjusted EBITDA, margin was 13.6% in Q2 FY27.

The Q2 FY27 margin disclosures show two offsetting movements. EFL says the operating-expense ratio improved to 41.6% of revenue, while gross margin declined to 55.1%, primarily because of a significant increase in commodity costs; a basis point is one-hundredth of a percentage point.

What does EFL's four-year warranty include?

EFL says its 4X product range provides a four-year unconditional warranty and calls it an industry first. The offer includes zero filter and spares cost, zero service cost and no annual maintenance contract, or AMC, requirement over the stated four-year period.

The company markets the range under the Aquaguard brand and describes it as “India's #1 water purifier” with a four-year unconditional warranty. That is EFL's marketing claim in the presentation, which provides no ranking methodology, market-size data or independently stated share measure.

EFL identifies ENRICH Glam Minerals, ASPIRE Glow and ENRICH Ritz Pro in the launch material. The source calls the launch a 4X range but does not disclose individual product prices, filtration specifications, warranty eligibility conditions, geographic coverage or separate launch dates for these models.

The commercial mechanism is the stated removal of recurring charges for filters, spares and service for four years. EFL does not quantify the resulting customer saving, the cost of fulfilling the warranty, the number of units sold under the offer or the sales mix of the named products.

Why does EFL link the warranty to market-share gains?

EFL links the four-year proposition to its Grow Water agenda by pairing high-teens volume-led revenue growth with a message of no hidden bills. The warranty states a defined ownership-cost proposition for four years, while the company says the economy segment and stainless-steel range led its water growth.

The source supports a distinction between EFL's reported result and its product proposition. It reports significant market-share gains and high-teens Grow Water revenue growth, but it does not give a numerical connection between those gains and the 4X range, including no range-specific sales volume or revenue figure.

The offer also corresponds with EFL's Excel In Service pillar, which focuses on customer experience and lifetime value. EFL says filter sales accelerated year on year and has launched Aquaguard Express Care, a same-day service promise, but does not state whether Express Care applies to 4X owners.

Aquaguard Express Care is advertised at Rs 349 and includes an eight-step service check, expert technicians, genuine Nanopore Long-Life Filters and a six-month warranty on replaced spares. This is a separately marketed paid service, whereas the 4X range states zero service and spares costs, and the presentation does not explain how the two offers interact.

How does water compare with EFL's other product initiatives?

EFL presents water as one part of an expansion plan spanning convenient cleaning and air. In robotics, the company says growth has sustained momentum through premiumization and that it launched three new stock-keeping units, or SKUs, during the festive season, unlike the water business where it identifies economy-segment volumes as a key driver.

In water-adjacent products, EFL is promoting Aquaguard water softeners through a new influencer-led marketing campaign, described as the first such campaign. The presentation associates hard water with hair fall, skin rash and scaling, but does not report water-softener revenue, unit sales or campaign dates.

For air, EFL says several new launches strengthened the Aeroguard air-purifier portfolio. These portfolio moves differ from the four-year Aquaguard warranty because the source discloses product launches and marketing activity for water softeners and air purifiers, but no comparable warranty terms or growth figures for those categories.

EFL's Q2 FY27 financial measures provide context for the wider rollout. Adjusted EBITDA margin was 13.6% in Q2 FY27, compared with 10.5% in Q1 FY27, while gross margin was 55.1% in Q2 FY27 after the company cited commodity costs and higher spending on stores and marketing.

Conclusion

EFL's water proposition combines reported high-teens, volume-led Grow Water revenue growth with a four-year unconditional warranty that covers specified filter, spares and service costs without an AMC. The company says this has accompanied significant market-share gains, but the presentation does not quantify either the share movement or the contribution of the 4X range.

The next disclosure to watch is whether EFL provides range-level sales, water-category market share or product-mix data for the four-year offer. Its stated plan includes scaled-up in-store presence, new marketing campaigns, penetration and premiumization, while Q2 FY27 gross margin was 55.1% amid higher commodity costs.