Detailed Narrative
Macroeconomic and Internal Developments
FY25 saw challenges with sluggish rural consumer spending and stagnant urban demand, though a good monsoon is expected to boost agricultural incomes. The company faced significant volatility in zinc prices and rupee-dollar exchange rates, which were actively monitored to protect margins. Internally, Eveready completed its route-to-market transformation, yielding benefits in faster deliveries and improved field productivity in the second half of FY25.
Brand Performance and Marketing
Eveready invested over 10% of sales in advertising and promotions. Integrated campaigns for Alkaline Batteries resulted in strong volume growth, achieving a 14% volume share by year-end. The Zinc-Carbon range maintained its market share, keeping the overall battery market share steady at 53%. The company remains the only player communicating to consumers in the Flashlights category.
Segment-wise Performance
In Batteries, Carbon-Zinc volumes held steady, while Ultima and Ultima Pro ranges gained substantial traction. Flashlights saw 6.6% YoY growth, with rechargeable models driving premiumization, and BIS certification expected to favor organized players. The Lighting segment faced value erosion but protected margins through price mix optimization, value-added products, and expansion into modern trade and e-commerce. Emergency bulbs grew over 20% and consumer luminaires over 30%.
Financial Performance Summary
The company achieved overall revenue growth for FY25, with Q3 and Q4 registering mid to high single-digit growth, marking an inflection point. EBITDA improved by 8.6% and PAT by 23.5% over the previous year. For FY25, the overall operating margin was 11.3%, with Batteries at 15%, Flashlights at 8%, and Lighting breaking even. Q4 FY25 saw Battery operating margin at 13%, Lighting almost flat, and Flashlight marginally negative to 5%.
Jammu Plant and Cost Efficiencies
The Greenfield Alkaline Battery plant in Jammu is on track to commence commercial operations by year-end FY26. This plant, with a total CAPEX of ₹180 crores, is expected to enhance cost efficiencies and reduce reliance on imports, providing a 10% plus saving for the battery segment. The CAPEX is funded with 25% internal accruals and 75% debt.
Capital Structure and Debt Management
Gross debt levels were around ₹310 crores. The company achieved a debt reduction of ₹90-100 crores throughout the year, though new investment in the Jammu plant offset some of this. The cost of debt is currently around 8.7% to 8.8%. The KKR matter is expected to be resolved by September 30, 2025, which will inform decisions on monetizing land assets.
Route-to-Market and Digital Channels
The route-to-market transformation, which involved reducing distributor count from 5,000 to 1,000, faced initial challenges but has largely been ironed out by Q2 FY25. The company is intensifying its focus on e-commerce and quick-commerce channels, while also upskilling its sales force and broadening outlet coverage for traditional trade, which remains the pivotal backbone of FMCG distribution.
Leadership Transition
Mr. Anirban Banerjee has been appointed as the Chief Executive Officer (CEO) of the company, effective May 9th, 2025. This marks an important step in the planned leadership transition as Mr. Suvamoy Saha prepares to step down from his role on September 30, 2025.