Eveready Q4 FY26: Alkaline scale-up, steadier demand, and a balance sheet unlock

Eveready Industries India Limited closed FY26 with steady, broad-based revenue growth and a clear strategic pivot towards premium alkaline batteries. For Q4 FY26, consolidated revenue rose 9.4% year on year to INR 327.2 crore, while FY26 revenue increased 8.2% to INR 1,455.4 crore. EBITDA grew 10.7% in Q4 to INR 28.7 crore and 8.9% for FY26 to INR 167.5 crore, with FY26 EBITDA margin holding at 11.5%.

Net profit numbers in Q4 need context. PAT for Q4 FY26 was INR 141.8 crore, but the quarter included a large exceptional income linked to the transfer of leasehold rights at the Noida plant. Management disclosed INR 105.2 crore of income from Plot B1, alongside multiple non-recurring expenses recorded during FY26.

The operational picture is better understood through segment performance and the company’s actions on pricing, manufacturing integration, and debt reduction.

Segment mix remains battery-led, while lighting shows faster momentum

Batteries continued to anchor the company’s topline. In Q4 FY26, batteries contributed 67% of revenue at INR 224.1 crore, while lighting contributed 24% at INR 80.5 crore and flashlights 9% at INR 29.2 crore. On a full-year basis, batteries were 65% of revenue at INR 971.9 crore, lighting 23% at INR 341.0 crore, and flashlights 12% at INR 179.7 crore.

The standout within batteries was the alkaline growth trajectory. In Q4 FY26, alkaline accounted for 12% of battery revenue and rose to INR 26.5 crore from INR 14.6 crore in Q4 FY25. The company also indicated that dry cell market share was steady at 52% and that tactical pricing actions would continue to offset inflationary pressure.

In flashlights, the portfolio tilt towards rechargeable formats is becoming clearer. In Q4 FY26, rechargeable flashlights made up 54% of flashlight revenue, with revenue in the rechargeable segment increasing to INR 15.5 crore from INR 13.0 crore a year earlier.

Lighting delivered the sharpest growth in the quarter, with Q4 FY26 segment revenue up 17% year on year. The company highlighted a recovery in value performance and strong volume growth in subcategories such as emergency LEDs. Management also pointed to MCBs, wires, and accessories, launched earlier in the year, as supporting diversification.

Note: PAT includes exceptional items, including income from transfer of leasehold rights at Noida (Plot B1) and non-recurring expenses disclosed by the company.

Jammu alkaline plant is the strategic centrepiece for premiumisation

The commissioning of the Jammu manufacturing facility is positioned as a major step in Eveready’s premium strategy. Management described it as India’s only operational alkaline battery manufacturing plant, inaugurated on 22 April 2026. The company invested around INR 200 crore in the facility at Bari Brahmana, Jammu, with a peak alkaline capacity of 360 million batteries annually and a phased ramp-up planned over the coming years.

Management expects production of more than 100 million units in the first year of operations, with commercial production expected to commence within a few weeks from the concall date. The stated intent is to transition from fully imported alkaline batteries to domestic manufacturing, improving supply resilience and enabling cost efficiencies over time.

On returns, management provided a specific directional metric: the payback horizon. The CEO indicated an expected payback period of about 5 to 6 years for the Jammu plant. The CFO clarified that operational breakeven is expected from year 1 at the planned production scale, while the 5 to 6 years refers to payback of the capex.

The company also stated that the Jammu facility is capable of supporting manufacturing lines for batteries, flashlights, and lighting products. Beyond domestic supply, management noted that the plant could be used in the future to explore white labelling of alkaline batteries for international markets.

Cost volatility, pricing actions, and an effort to defend margins

FY26 operated under a difficult input-cost backdrop. Management highlighted that zinc prices rose sharply and remained elevated, while currency volatility added to uncertainty. To counter this, Eveready took calibrated pricing actions in carbon-zinc and alkaline batteries and focused on cost controls, procurement efficiency, and working capital discipline.

The CFO also discussed forex hedging as part of the company’s toolkit during FY26, describing it as one of the actions used to mitigate volatility. For FY27, management refrained from aggressive promises. The CEO indicated that headwinds are stronger than what the company faced last year, but the company aims to hold EBITDA margins around the same region as FY26.

On advertising and promotion spend, management stated it has been holding around 10% of sales and expects that level to continue in the new financial year.

Asset divestment and debt reduction are being used to unlock flexibility

A key balance sheet lever in FY26 was the Noida asset divestment. The company entered into two separate agreements for sale and transfer of leasehold rights for Plot B1 and Plot B2 at the Noida plant. Plot B1 transfer was completed on 30 March 2026, resulting in the disclosed exceptional income.

Management shared that proceeds for Plot B1 were around INR 116 crore, and that Plot B2 is expected to take the overall proceeds to around INR 251 crore. The company also stated it has already received an advance of around INR 44 crore for Plot B2, with the remaining amount expected upon closure.

Debt reduction remained a stated priority. The company reported closing net debt of INR 178 crore and said it repaid more than INR 100 crore in FY26, even after funding the Jammu facility. Management reiterated that debt reduction is the first preference for deployment of proceeds from the Noida transaction.

What to watch in FY27

Eveready enters FY27 with two parallel narratives. One is operating execution through premiumisation, pricing discipline, and new product adjacencies. The other is financial flexibility, supported by non-core asset monetisation and continued debt reduction.

The biggest operational variable is the pace of ramp-up at Jammu and how quickly domestic alkaline production translates into better mix and cost structure. At the same time, management acknowledged that commodity and forex volatility remain meaningful risks, and additional pricing actions could be considered if uncertainty persists.

The quarter’s message is consistent with the company’s strategic framing: accelerate the premium portfolio, collaborate through distribution efficiency, and innovate through new products. The next few quarters will test how well those levers translate into durable margins and a stronger competitive position in a changing battery market.