Eveready Inds.

Eveready Industries India Ltd. delivered a robust FY26 with an 8.2% revenue growth and an 8.9% EBITDA growth, achieving an 11.5% EBITDA margin. This performance was supported by disciplined cost management and pricing interventions, despite elevated commodity costs, particularly zinc. The company noted a gradually improving demand environment, with steady rural consumption and signs of urban recovery in the latter half of the year.

The battery segment was the primary growth driver, achieving 9.3% growth in FY26, fueled by strong demand in both alkaline and carbon zinc categories. The alkaline portfolio showed exceptional performance, now constituting nearly 10% of the battery business and targeting an exit market share of 20%. The company is reinforcing its alignment with premiumization trends and power-intensive devices by launching lithium batteries and expanding its alkaline offerings.

A major highlight was the commissioning of the Jammu manufacturing facility on April 22, 2026, India's only operating alkaline battery plant, with an investment of approximately INR 200 crores. This facility has a peak capacity of 360 million alkaline batteries annually, with a phased ramp-up targeting 100 million units in the first year of operations. It is expected to enhance supply resilience, improve cost efficiencies, and contribute meaningfully to growth and margins from FY27.

Strengthening the balance sheet remained a key priority, with the company reducing debt by more than INR 100 crores in FY26. This was achieved through disciplined working capital management, calibrated procurement, and inventory optimization. The company aims for further debt reduction in FY27 and is utilizing proceeds from the sale of leasehold rights of its Noida plant (INR 116 crores for Plot B1, with another INR 136 crores for Plot B2 pending) towards this goal.

The flashlight segment grew 3% in FY26, with rechargeable formats gaining traction and new product launches like power banks and chargers strengthening the portable energy solutions portfolio. The recent BIS standard mandate for flashlights is expected to benefit organized players by increasing traction towards quality-compliant branded offerings. The lighting business grew 8.1% in FY26, driven by good volume growth across consumer lighting categories, with a focus on higher-value SKUs and disciplined channel execution.

Eveready remains optimistic for FY27, viewing it as an important year for optimization, with continued ramp-up of the Jammu plant, stronger alkaline penetration, and premiumization across all segments. Despite potential commodity volatility, the company is confident in its operating outlook due to pricing actions and improved internal efficiencies. Strategic priorities include sustainable growth, double-digit operating margins, stronger manufacturing integration, and disciplined capital allocation.