Eureka Forbes FY26 revenue rises 11.3% to ₹2,710 cr

FY26 results: growth holds up in a tough year

Eureka Forbes said FY26 revenue increased 11.3% year-on-year to ₹2,710 crore, even as the company described the macro backdrop as challenging for much of the year. Management linked the performance to progress in its ongoing transformation journey. The company also indicated this was the second successive year of double-digit growth.

The focus in FY26 was not only on growth but also on building profitability. The company reported a continued improvement in operating metrics, especially margins. This has been a key theme across quarters through FY26.

Profitability snapshot: adjusted EBITDA and margin expansion

For the full year, adjusted EBITDA stood at ₹332 crore, translating into an adjusted EBITDA margin of 12.2%. The margin was up 55 basis points over the previous year. Management highlighted this as the third consecutive year of margin expansion, from 6.3% in FY23 to 12.2% in FY26.

The company also disclosed that adjusted PBT (pre-exceptional) rose 18% to ₹278 crore. Pre-exceptional PAT increased 19% to ₹190 crore. These metrics were cited as evidence of operating leverage and execution through FY26.

Q4 FY26: revenue at ₹684 crore, EBITDA margin at 13.2%

In Q4 FY26, the company reported revenue of ₹684 crore, up 11.6% year-on-year. Management said the quarter saw a progressively challenging operating environment, but performance remained strong. The company attributed growth to double-digit performance in the water purifier business and continued momentum in other parts of the portfolio.

Adjusted EBITDA for the quarter increased 13.1% to ₹90 crore. The underlying adjusted EBITDA margin was 13.2% in Q4. Management noted it delivered 13% plus margins in two out of four quarters in FY26.

For Q4, adjusted PBT grew 8.1% year-on-year to ₹73 crore, and PAT was reported at ₹51 crore. The company positioned the quarter as broadly aligned with its longer-term trajectory.

Q3 FY26: resilient growth, but impacted by an exceptional charge

For Q3 FY26, management said revenue grew 8% year-on-year. CFO Gaurav Khandelwal reported revenue of ₹645.4 crore for the quarter. Adjusted EBITDA margin expanded by 57 basis points to 11.3%.

The company said Q3 results were impacted by a one-time pre-tax charge of ₹40.4 crore related to new labour codes, treated as an exceptional expense. Management also referred to a post-festive slowdown and elevated trade inventory in e-commerce as factors affecting the quarter.

On profitability drivers, the company reported gross margins expanded 331 basis points year-on-year to 60.8%, supported by its COGS optimisation program. A&SP spends increased 23.3% year-on-year, reflecting continued investment in category awareness.

FY26 year-to-date (nine months): double-digit growth continues

On a YTD basis (nine months), revenue stood at ₹2,026.6 crore, up 11.1% year-on-year. Adjusted EBITDA margin was 11.9%, up 67 basis points year-on-year.

Adjusted PBT grew 22% year-on-year to ₹204.8 crore. The company also cited a nine-month PBT figure of ₹139.1 crore pre the labour-code impact, up nearly 24% year-on-year. For the nine-month period, gross margin was reported at 58.8%, up 90 basis points.

Q2 FY26: ₹773.4 crore revenue and EBITDA crosses ₹100 crore

In Q2 FY26, revenue from operations increased 14.9% year-on-year to ₹773.4 crore. The quarter was described by management as a milestone, with more than ₹100 crore of year-on-year revenue addition for the first time.

Adjusted EBITDA rose 31.1% year-on-year to ₹101.6 crore, with adjusted EBITDA margin improving 162 basis points to 13.1%. Adjusted PBT (before exceptional items and ESOP) increased 36.6% year-on-year to ₹88.9 crore. PAT increased 32.0% year-on-year to ₹61.6 crore.

The company also reported Q2 gross margin at 56.5% versus 56.3% year-on-year, while noting a sequential contraction of 322 basis points due to seasonality.

H1 FY26: revenue ₹1,381.2 crore with stronger profitability

For H1 FY26, revenue from operations increased 12.7% year-on-year to ₹1,381.2 crore. Adjusted EBITDA for the half-year stood at ₹168.5 crore, up from ₹140.9 crore in H1 FY25, with margin improving 70 basis points to 12.2%.

Adjusted PBT (before exceptional items and ESOP) increased 26.8% year-on-year to ₹146.2 crore. PAT increased 28.8% year-on-year to ₹100.1 crore.

Key reported financials at a glance

Market impact and what investors track from here

The company’s disclosures show a consistent mix of double-digit revenue growth and margin expansion across FY26, with Q2 and Q4 delivering 13% plus adjusted EBITDA margins. The exceptional labour-code charge of ₹40.4 crore in Q3 is a key item for investors to separate from underlying trends, since it was disclosed as a one-time pre-tax expense.

Management commentary also points to active reinvestment, with A&SP spends up 23.3% year-on-year in Q3 even as margins expanded. The company also linked gross margin improvement to its COGS optimisation program, including a 331 basis point year-on-year jump to 60.8% in Q3.

Longer-term target and near-term commentary

Management reiterated an ambition of achieving 2x revenue and 3x EBITDA by FY30. On near-term expectations, the company indicated Q4 revenue growth should be ahead of the YTD growth rate of 11.1%, citing channel inventory normalisation.

While the company did not provide a full-year numerical forecast beyond these statements, the quarter-by-quarter data offers a clear view of the drivers it has highlighted: gross margin expansion, operating leverage, and continued spending to build category awareness.

Conclusion

Eureka Forbes closed FY26 with revenue of ₹2,710 crore and adjusted EBITDA of ₹332 crore, with margins improving to 12.2% and marking a third straight year of expansion. Quarterly disclosures show Q2 and Q4 posting 13% plus adjusted EBITDA margins, while Q3 included a disclosed one-time pre-tax charge related to labour codes. Investors will likely monitor how gross margin gains and reinvestment levels evolve, alongside progress toward the company’s FY30 ambition of 2x revenue and 3x EBITDA.