Q1 2027 Eureka Forbes Ltd Earnings Call Transcript
Key Points
- Revenue grew 15.3% year-on-year to Rs. 701 crores, driven by broad-based growth across product categories, especially water purifiers.
- Water purifier category saw high-teens growth with double-digit volume growth, leading to market share gains.
- Emerging categories like robotics and water softeners delivered strong double-digit growth, with robotics benefiting from premiumization.
- Launched innovative products, including water purifiers with four-year filter life and a new robotics campaign featuring Shraddha Kapoor, to drive category adoption.
- Maintained a strong balance sheet with a net cash surplus of Rs. 425 crores and reported a 54% increase in PAT to Rs. 55 crores.
- Adjusted EBITDA margin declined by 46 basis points year-on-year to 10.5%, due to higher commodity costs and adverse currency movements.
- Gross margins fell by 131 basis points to 58.4%, reflecting inflationary pressures and currency volatility.
- Service revenue growth moderated due to price increases on AMCs, leading to some deferral in bookings and softer growth.
- Other expenses rose 21.4% year-on-year, driven by higher advertisement and sales promotion spends, impacting profitability.
- The company expects full-year EBITDA margins to remain broadly in line with last year, indicating limited near-term margin expansion.
Ladies and gentlemen, good day and welcome to the Eureka Forbes Limited Q1 FY27 Earnings Conference Call.
We have Mr. Pratik Pota, Managing Director and CEO and Mr. Gaurav Khandelwal, CFO, Eureka Forbes with us.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference, please signal an operator by pressing star then zero on your touch tone phone.
Please note that this conference is being recorded.
Before I hand it over to Mr. Prateep Pota, please note the disclaimer.
Certain statements made by management in today's call may be forward-looking statements.
These forward-looking statements reflect management's best judgment and analysis as of today.
The actual results may differ materially from the current expectations based on a number of factors affecting the business.
I now hand the conference over to Mr. Pratik Khota.
Thank you, and over to you, sir.
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