Eureka Forbes Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Eureka Forbes Ltd filed with BSE on 19 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Eureka Forbes reported Q1 FY27 revenue of INR701 crores, up 15.3% year-on-year, driven by broad-based growth in the product business, especially water purifiers which grew in high teens on double-digit volume growth. Adjusted EBITDA margin came in at 10.5%, down 46 basis points year-on-year, due to lower gross margins and higher planned growth investments, while reported PAT grew 44% to INR55 crores aided by a one-time gratuity reversal. Service revenue growth tracked at levels similar to the prior quarter, with management noting that price increases in AMC led to some deferral in bookings.
Numbers mentioned
Revenue: INR701 crores (Q1 FY27)
p. 3
“Revenue for the quarter grew by 15.3% year-on-year to INR701 crores, supported by accelerated and broad-based growth across the product business, especially water.”
Pratik Pota, page 3 of the filed PDF · View the filing
Adjusted EBITDA margin: 10.5% (Q1 FY27)
p. 4
“On the profitability front, adjusted EBITDA margin came in at 10.5%, a decline of 46 basis points year-on-year, primarily due to a moderation in gross margins and our planned and deliberately higher growth investments.”
Pratik Pota, page 4 of the filed PDF · View the filing
Gross margin: 58.4% (Q1 FY27)
p. 5
“Gross margins for the quarter stood at 58.4%, lower by 131 basis points year-on-year, reflecting the impact of higher commodity costs and adverse currency movements.”
Gaurav Khandelwal, page 5 of the filed PDF · View the filing
Employee costs: INR90 crores (Q1 FY27)
p. 5
“Moving on to operating expenses, employee costs stood at INR90 crores, an increase of 10.7% year-on-year.”
Gaurav Khandelwal, page 5 of the filed PDF · View the filing
ESOP charges: INR6.6 crores (Q1 FY27)
p. 6
“ESOP charges increased by 16.2% year-on-year to INR6.6 crores, primarily attributable to fresh employee grants and expanded ESOP coverage as part of our talent attraction and retention strategy.”
Gaurav Khandelwal, page 6 of the filed PDF · View the filing
Service charges: INR83 crores (Q1 FY27)
p. 6
“Service charges grew by 2.7% year-on-year to INR83 crores, reflecting the relatively softer growth in the underlying service bookings to some extent, and our ongoing initiatives to curb leakages.”
Gaurav Khandelwal, page 6 of the filed PDF · View the filing
Other expenses: INR162 crores (Q1 FY27)
p. 6
“Other expenses, which include A&SP spends, grew by 21.4% year-on-year to INR162 crores.”
Gaurav Khandelwal, page 6 of the filed PDF · View the filing
Adjusted EBITDA: INR74 crores (Q1 FY27)
p. 6
“As a result of the above, adjusted EBITDA for the quarter grew by 10.5% year-on-year to INR74 crores with adjusted EBITDA margins at 10.5%.”
Gaurav Khandelwal, page 6 of the filed PDF · View the filing
Adjusted PBT: INR61 crores (Q1 FY27)
p. 6
“Adjusted PBT for Q1 came in at INR61 crores, while reported PAT grew by 44% to INR55 crores.”
Gaurav Khandelwal, page 6 of the filed PDF · View the filing
Pre-exceptional PAT: INR41 crores (Q1 FY27)
p. 6
“Adjusting for this one-off reversal, pre-exceptional PAT grew by 6.1% year-on-year to INR41 crores.”
Gaurav Khandelwal, page 6 of the filed PDF · View the filing
Net cash surplus: INR425 crores (Q1 FY27)
p. 6
“Turning to balance sheet. We ended the quarter with a net cash surplus of INR425 crores.”
Gaurav Khandelwal, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — in line with last year · FY27
stated firmly by Pratik Pota
p. 4
“As shared earlier, we expect full year EBITDA margins to be broadly in line with last year.”
Pratik Pota, page 4 of the filed PDF · View the filing
Revenue growth — a clear step-up in full year growth · FY27
stated firmly by Pratik Pota
p. 4
“Looking ahead, given the strong start in Q1, we are confident of delivering a clear step-up in our FY27 full year growth.”
Pratik Pota, page 4 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said service revenue growth tracked at similar levels to earlier quarters, with some deferral of AMC renewals due to price hikes, expected to normalize over time.
Answered by Management
Asked by Siddhartha Bera: When will service revenue growth pick up given the price increases taken in AMC?
p. 7
“When it comes to service bookings, however, given the price increase that we took, we did see some deferral and some postponement of AMC renewals, which we expect to reduce and mitigate and normalize over time.”
Management, page 7 of the filed PDF · View the filing
Management stated the price increase band was between 3% and 12%, differing by single-year versus multi-year AMC.
Answered by Management
Asked by Siddhartha Bera: What was the range of price increases taken in AMC?
p. 7
“The price increase, the band was roughly between 3% to 12%.”
Management, page 7 of the filed PDF · View the filing
Management said water purifier and softener growth was largely volume-led, while robotics growth was driven by premiumization/mix shift.
Answered by Management
Asked by Keshav Lahoti: How much of the 15% growth was driven by pricing versus volume?
p. 9
“So therefore, what we saw clearly was a volume-led growth in the case of water with some impact of price coming through.”
Management, page 9 of the filed PDF · View the filing
Management said filter gross margins are slightly lower than AMC but still relatively high.
Answered by Management
Asked by Achal Lohade: Does the filter business carry similar margins to AMC?
p. 15
“From a gross margin perspective, it is slightly lower than AMC, but not very off. A filter is also a relatively high gross margin business.”
Management, page 15 of the filed PDF · View the filing
Management explained Q1 margin decline is a seasonal pattern from front-loaded growth investment, and cited last year's pattern of a Q1 decline followed by full-year margin expansion.
Answered by Management
Asked by Sameer Gupta: How will margins be maintained given price hike restraint and higher A&SP spend?
p. 17
“And as the best reference point is same time last year, where we started the year with quarter one margins being down 46 basis points year-on-year, but we ended the year with a margin expansion of nearly 55 basis points.”
Management, page 17 of the filed PDF · View the filing
Management said that if costs correct, they would pass on the benefit to consumers to remain competitive and drive growth.
Answered by Management
Asked by Sameer Gupta: If commodity costs correct, would the company reverse price hikes?
p. 18
“Therefore, if costs correct, we have to pass them on to consumers and make sure we stay competitive and drive growth and market share.”
Management, page 18 of the filed PDF · View the filing
Management reaffirmed confidence in the FY30 ambition of doubling revenue and tripling EBITDA from FY25 levels.
Answered by Management
Asked by Vikram Kotak: What is the company's progress toward its FY30 ambition on revenue and EBITDA?
p. 18
“So, our ambition of 2x revenue from FY25 to FY30 and 3x EBITDA in the same period remains the North Star for us, and we remain confident of delivering that.”
Management, page 18 of the filed PDF · View the filing
Management said more competitors help grow category excitement and that Eureka Forbes focuses on driving penetration and premiumization rather than reacting to competitors.
Answered by Management
Asked by Anjali Mohata: How will the company defend market share against new entrants?
p. 24
“I think it's important to first appreciate and recognize and we believe very strongly that if there are more competitors in the category, it creates excitement, it drives innovation, it creates much greater consumer interest, and therefore helps grow the category.”
Management, page 24 of the filed PDF · View the filing
Risks flagged
Inflationary pressures and currency volatility affecting the operating environment
p. 3
“The operating landscape in Q1 continued to be impacted by inflationary pressures and currency volatility and the associated uncertainty.”
Pratik Pota, page 3 of the filed PDF · View the filing
Higher commodity costs and adverse currency movements pressuring gross margins
p. 5
“Gross margins for the quarter stood at 58.4%, lower by 131 basis points year-on-year, reflecting the impact of higher commodity costs and adverse currency movements.”
Gaurav Khandelwal, page 5 of the filed PDF · View the filing
No meaningful reduction seen yet in input costs
p. 5
“While the cost environment remains challenging, and we are yet to see any meaningful reduction in input costs, our focus will be on driving our cost savings program and product mix.”
Gaurav Khandelwal, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.