Detailed Narrative
Strong Financial Performance in Q4 and FY26
Eureka Forbes delivered robust financial results for Q4 FY26, with revenue growing 11.6% year-on-year to ₹684 crores. The adjusted EBITDA margin reached a record-high of 13.2% for the quarter. For the full fiscal year 2026, revenue increased by 11.3% to ₹2,710 crores, marking the second consecutive year of double-digit growth. Adjusted EBITDA for FY26 stood at ₹332 crores, a 16.4% increase year-on-year, with the margin expanding by 55 basis points to 12.2%.
Strategic Shift to Multi-Category Health & Hygiene
The company is successfully evolving from a single-category player to a multi-category health and hygiene company. This strategic shift is proving to be a meaningful source of growth, with emerging categories scaling well. Robotics, for instance, delivered strong growth and now accounts for 65-66% of the overall vacuum cleaner category. Air purifiers grew 2.7x in FY26, albeit from a low base, and water softeners maintained strong double-digit growth, supported by increased awareness and focused investments.
Focus on Service Business and Customer Experience
The service business maintained its momentum, with AMC bookings growing in double digits in FY26. The company has implemented several initiatives to enhance customer experience, including improving response turnaround times and reducing escalations. A new growth vector is being pursued to unlock the large filter sales opportunity, involving a new assortment, distribution system, and an influencer-led marketing campaign that has already generated over 1 billion views.
Managing Input Cost Inflation and Pricing Strategy
Input cost inflation intensified during the quarter, coupled with currency depreciation, leading to a calibrated price increase of 6-7% on average in April 2026. Management believes this price hike addresses a significant portion of the cost pressures. While the company aims to at least hold margins in FY27, it will remain agile and focus on aggressive efficiency improvements and waste reduction to mitigate ongoing inflationary impacts and an uncertain macro environment.
Growth Drivers: Robotics, Air Purifiers, Softeners, and Filters
Robotics is identified as a major growth engine, expected to reach over ₹1,000 crores by FY30, driven by product innovation, distribution expansion, and consumer awareness. Air purifiers are seen as a significant future growth opportunity, with strong plans for expansion beyond North India and year-round usage. Water softeners continue to grow strongly due to the prevalence of hard water in India. The 'filters opportunity' is a new vector, addressing the large installed base of AquaGuard users not under AMC, with investments in consumer awareness and distribution.
Strengthened Balance Sheet and Capital Allocation
Eureka Forbes significantly strengthened its balance sheet, transitioning from a net debt of ₹193 crores in June 2022 to a net cash surplus of ₹443 crores today. This provides strategic flexibility for future growth, including potential inorganic opportunities. The company generated a free cash flow of ₹237 crores in FY26, representing 148% of reported PAT, despite a step-up in capex from ₹55 crores in FY25 to ₹84 crores in FY26.