Eureka Forbes Q4 FY26 profit up 0.7%, stock slips

Stock reaction: shares fall despite revenue growth

Eureka Forbes shares declined 1.86% to Rs 483.95 after the company reported its Q4 FY26 standalone numbers. The market reaction came even as the company posted double-digit growth in revenue from operations for the quarter. Profit growth, however, remained muted on a year-on-year basis.

The company operates in the health and hygiene space, spanning water purifiers, vacuum cleaners and air purifiers. These categories are often tracked for demand signals linked to discretionary consumption, urbanisation, and rising awareness around health and hygiene.

Q4 FY26: revenue rises 11.6%, profit edges up

For Q4 FY26, Eureka Forbes reported standalone revenue from operations of Rs 683.8 crore, up 11.6% compared with Q4 FY25. Standalone net profit rose 0.7% to Rs 51.1 crore.

The quarter reflected continued top-line momentum, but the limited increase in profit indicated that the earnings outcome did not move in line with revenue growth. The company did not provide additional line-item details in the provided information, but management commentary positioned the quarter as strong amid a difficult external environment.

FY26 full-year numbers: profit dips, revenue stays strong

For FY26, Eureka Forbes posted standalone revenue from operations of Rs 2,710.5 crore, up 11.3% year-on-year. Standalone net profit for the year stood at Rs 160.2 crore, down 1.9% year-on-year.

The divergence between revenue growth and profit growth is a key takeaway for investors tracking operating leverage and the pace of cost absorption. While the company described the year as a solid performance, the reported full-year profit decline shows that earnings momentum did not fully track sales growth.

Management commentary: focus on water, emerging categories, and service

Pratik Pota, MD and CEO, said the company closed FY26 with a strong quarter and a solid full-year performance despite a challenging external environment. He said growth was led by double-digit growth in water purifiers and continuing strong growth in emerging categories.

He also said the company’s investments helped the product business deliver healthy double-digit growth. According to the statement, growth was broad-based across categories, channels and geographies, while service bookings grew double digits and customer experience improved.

Q3 FY26: mixed quarter with water purifier pressures

Eureka Forbes earlier reported Q3 FY26 (quarter ended December 31, 2025) standalone revenue from operations of Rs 645.4 crore, up 8.0% year-on-year. The company said the products business was driven by very strong growth in robotics.

The water purifier portfolio faced challenges due to elevated channel inventory and a post-festive season slowdown. The company also said it outperformed the category and gained market share during the quarter.

Air purifiers saw a sharp increase, with revenue growing 3x year-on-year, as per the company’s disclosure for Q3 FY26. Service momentum continued, with the third successive quarter of double-digit AMC bookings growth.

9M FY26: revenue and EBITDA improve, reported PAT falls

For the nine months ended December 31, 2025 (9M FY26), revenue grew 11.1% year-on-year to Rs 2,026.6 crore. Adjusted EBITDA increased 17.7% year-on-year to Rs 241.7 crore, with margin improving by 67 basis points year-on-year to 11.9%.

Reported PAT for 9M FY26 was Rs 109.1 crore, a decrease of 3.0% year-on-year. The company also disclosed that profit after tax before exceptional items increased 23.6% year-on-year to Rs 139.1 crore, indicating that exceptional items materially affected the reported result.

Q1 FY26 snapshot: revenue up 9.9%, PAT up 24.1%

For Q1 FY26 (quarter ended June 30, 2025) on a standalone basis, revenue from operations grew 9.9% year-on-year to Rs 607.7 crore. Profit after tax increased 24.1% year-on-year to Rs 38.5 crore.

The company disclosed an adjusted EBITDA margin of 11% for the quarter, gross margin of 59.7% (vs 60.5% year-on-year), and non-cash ESOP charges of Rs 5.6 crore. Depreciation for the quarter was Rs 8.3 crore.

Product and service levers highlighted during FY26

Across its updates, Eureka Forbes repeatedly highlighted robotics within vacuum cleaners as a growth driver, including a 52% year-on-year growth figure cited for robotics. It also positioned services as a key growth engine, with double-digit growth in AMC bookings referenced across multiple quarters.

The company also indicated a strategy to position itself as a D2C health and hygiene tech leader. It launched a premium water purifier, Aquaguard Arctic Blaze, priced at Rs 79,999.

Industry backdrop: low penetration, long growth runway

The broader context shared alongside the company narrative points to low penetration across categories in India. Water purifiers were cited at 6% penetration (urban 12%, rural 3%), vacuum cleaners at 2%, and air purifiers at less than 1%.

The text also referenced a home and hygiene products market of Rs 23,000 crore growing at a 13% CAGR, along with multiple category growth projections through FY2030. These figures frame why companies in the segment are investing in innovation, premiumisation, and distribution.

Key reported numbers at a glance

Why the Q4 FY26 update matters for investors

The immediate stock decline following Q4 FY26 results suggests that investors weighed the small year-on-year profit increase against the stronger revenue growth. The FY26 full-year picture reinforces that theme, with revenue up double digits but profit down slightly.

Operationally, the company’s disclosures point to multiple growth vectors, including robotics, air purifiers, and service bookings. At the same time, the Q3 commentary on water purifier channel inventory and demand slowdown shows that core categories can face near-term volatility.

Conclusion

Eureka Forbes ended Q4 FY26 with double-digit revenue growth and a marginal increase in standalone profit, while FY26 revenue expanded but full-year profit edged lower. Management has continued to highlight water purifiers, emerging categories, robotics and service bookings as key drivers, alongside new premium launches such as Aquaguard Arctic Blaze.