Eveready Industries India Limited — Q4 FY26 earnings call

Call held 30 Apr 2026

Management summary

Eveready Industries India Ltd. reported a strong FY26 with 8.2% revenue growth and 8.9% EBITDA growth, achieving an 11.5% margin despite significant commodity cost headwinds. The commissioning of the Jammu alkaline battery plant marks a strategic milestone for premium portfolio expansion and supply resilience. The company also successfully reduced debt by over INR 100 crores, positioning itself for continued growth and value creation in FY27 amidst ongoing market volatility.

Highlights

  • FY26 Revenue growth of 8.2% and EBITDA growth of 8.9%, with EBITDA margin at 11.5% reflecting disciplined cost management and pricing interventions.

  • Battery segment, the primary growth driver, achieved 9.3% growth in FY26, with alkaline batteries now accounting for nearly 10% of the business and targeting 20% market share.

  • Commissioning of the Jammu manufacturing facility (INR 200 crores investment) for alkaline batteries, enhancing supply resilience and premium portfolio expansion.

  • Debt reduced by more than INR 100 crores in FY26, improving financial flexibility and supporting strategic growth.

  • BIS standard mandate for flashlights is expected to benefit organized players like Eveready by reducing unbranded competition.

Concerns

  • Commodity costs intensified in H2 FY26, particularly zinc prices, which are expected to continue into next quarters, creating significant cost pressures.

  • Ongoing West Asia crisis remains a key monitorable, posing risks of higher crude-linked inflation and supply chain disruption.

  • Potential for cannibalization of carbon zinc battery sales as the alkaline segment grows aggressively, though overall battery industry value is expected to look good.

Key financials

  1. Revenue Growth 8.2%
  2. EBITDA Growth 8.9%
  3. EBITDA Margin 11.5%
  4. Battery Segment Growth 9.3%
  5. Flashlight Segment Growth 3%
  6. Lighting Business Growth 8.1%

What they filed

Q1 FY27: revenue up 9.1%, net profit up 23.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue362 333 299 374 386 +7%367 +10%327 +9%408 +9%
EBITDA48 29 26 54 49 +2%33 +14%28 +8%61 +13%
Net profit30 13 10 30 -8 −127%7 −46%142 +1320%37 +23%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Jammu manufacturing facility for alkaline batteries, flashlights, and lighting products ₹200 Cr
    With an investment of approximately INR200 crores, the facility has a peak capacity of up to 360 million alkaline batteries annually with a phased ramp-up planned over the coming years.
  • Debt Debt disclosed
    • Repayment Debt reduced by more than INR 100 crores in the current fiscal year. ₹100 Cr
    Debt reduction remains a clear priority, having reduced debt by more than INR100 crores in the current fiscal year.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY27 · Medium confidence around 11.5%
    But given that we delivered 11.5% with all the headwinds of last year, my sense is that we should be able to hold around the same region. But yes, these are turbulent times. It is some parts of it are in the unknown. But going into the new year, we are looking towards maintaining similar kinds as last year.

    — Anirban Banerjee

  • Jammu Plant Operational Breakeven Profitability · FY27 · High confidence Year 1
    So at the full annualization basis also, if you run, I think year 1 onwards at the operating level, we will be a breakeven.

    — Bibek Agarwala

  • Jammu Plant Payback Period Profitability · Long-term · High confidence 5 to 6 years
    So our sense is that from a breakeven point of view, I think between 5 to 6 years should be an ideal breakeven point for this plant going forward.

    — Anirban Banerjee

Capacity

  • Jammu Plant Utilization Capacity · FY27 · Medium confidence 30%
    As mentioned earlier by Bibek Ji also that we will be anticipating at least 30% utilization level to end the year and a lot of preparation has been done for some job works to also pertaining to the same.

    — Saket Kapoor

Market Share

  • Alkaline Battery Market Share Market Share · Exit · Medium confidence 20%
    My sense is; we should be looking at exiting with 20% share.

    — Anirban Banerjee

Volume

  • Alkaline Battery Volume Growth Volume · Current year · Low confidence doubling itself
    So from a volume standpoint, I think the alkaline volumes have been trying to sort of doubling itself, whereas the zinc volumes are much more flatter and tepid.

    — Anirban Banerjee

  • Carbon Zinc Battery Volume Growth Volume · Current year · Low confidence flatter and tepid

    — Anirban Banerjee

Debt

  • Debt Reduction Debt · FY27 · High confidence further reduction
    But if you ask us our aspiration, we continue the journey of further debt reduction in FY '27.

    — Bibek Agarwala

Ad Spend

  • A&P as % of Sales Ad Spend · FY27 · High confidence 10%
    We've been holding on to about 10% A&P and that will go through even in the new financial year.

    — Anirban Banerjee

Asset Sale

  • Noida Plot B1 Sale Proceeds Asset Sale · Current year · High confidence 116 crores
    With respect to this plant, the sale proceeds is around INR116 crores, that plot which I have sold.

    — Bibek Agarwala

  • Noida Plot B2 Sale Proceeds Asset Sale · Current year · High confidence 136 crores
    Total INR251 crores. So this is around INR116 crores, another is around INR136 crores.

    — Bibek Agarwala

Tax Rate

  • Effective Tax Rate Tax Rate · FY27 · High confidence 22%
    No. So your understanding is right. For the FY '27, we'll be transitioning to the new regime.

    — Bibek Agarwala

What to watch in Q1 FY27

Jammu Plant Commercial Production Start

next couple of weeks (Q1 FY27)
Current Inaugurated on April 22, 2026
Target Commercial production commenced

Why it matters

Crucial for realizing benefits from the INR 200 crore investment and transitioning from imported alkaline batteries.

Commercial production is expected to commence shortly in the next couple of weeks, and we remain optimistic that this facility will contribute meaningfully to growth, margins and market share over FY '27 and beyond.

Risks & concerns

  • Commodity Cost Inflation (Zinc, Crude)

    high

    Zinc prices witnessed a steep and sustained increase in H2 FY26, expected to continue into next quarters, creating significant cost pressures. Crude-linked inflation is also a risk.

    Management acknowledged

  • West Asia Crisis and Supply Chain Disruption

    medium

    The ongoing West Asia crisis remains a key monitorable, with risks of higher crude-linked inflation and supply chain disruption.

    Management acknowledged

  • Geopolitical Sentiment Impact on Urban Demand

    medium

    Potential impact on urban demand revival if geopolitical situation carries on more than Q1, though current trends are positive.

    Analyst acknowledged

  • Cannibalization of Carbon Zinc by Alkaline Batteries

    medium

    As alkaline battery saliency grows (expected to reach 20-25% of battery market), some compression in zinc sales is bound to happen, though overall battery industry value is expected to look good.

    Both acknowledged

Q&A highlights

6 direct
EBITDA Margin Trajectory for FY27 amidst headwinds Partial
But given that we delivered 11.5% with all the headwinds of last year, my sense is that we should be able to hold around the same region. But yes, these are turbulent times. It is some parts of it are in the unknown. But going into the new year, we are looking towards maintaining similar kinds as last year.

Addresses the sustainability of margins given commodity volatility and provides a directional outlook for FY27, indicating potential challenges.

Asked by Saket Kapoor

Jammu Plant Contribution and Breakeven Timeline Direct
So at the full annualization basis also, if you run, I think year 1 onwards at the operating level, we will be a breakeven. But the payback perspective, definitely 5 to 6 years.

Clarifies the financial viability and timeline for the significant new investment, distinguishing between operational breakeven and payback period.

Asked by Saket Kapoor

Cannibalization of Carbon Zinc by Alkaline Batteries Direct
Now, in a fundamentally high saliency of alkaline, there will be some amount of cannibalistic position on the zinc batteries.

Acknowledges a potential risk to the core carbon zinc business as the company pushes its premium alkaline portfolio, indicating a strategic shift.

Asked by Bhargav Buddhadev

Impact of BIS Mandate on Flashlight Segment and Market Share Direct
Our sense is that sometime in the second half of this year, the cost of compliance for some of the unorganized players who were earlier simply importing it and selling it into the market will have to go up... In a situation like that, we should be very well poised with the price gap reducing and definitely superior quality.

Explains how regulatory changes could benefit organized players like Eveready by weeding out unbranded competition and improving market share.

Asked by Bhargav Buddhadev

Tax Transition to New Regime (22% tax rate) for FY27 Direct
No. So your understanding is right. For the FY '27, we'll be transitioning to the new regime.

Confirms a significant change in the effective tax rate for the upcoming fiscal year, which will impact net profitability.

Asked by Vipul Shah

Tax Provision for Noida Land Sale (INR 105 crores) Direct
So I think there are 2 parts. One, during the current year, we have taken a write-off of around INR500 crores of old provisions of ICD, which has been given. So that has allowed us a business loss. So that is why in the current financial year, when you sell asset, so in the current financial, the capital gain can be set off against the business losses. So that is why there is no taxes.

Explains the accounting treatment for the significant land sale, clarifying why no tax was paid due to prior business losses and write-offs.

Asked by Vipul Shah

Jammu Plant Tax Incentives Partial
So there is the incentive, but as of now, our plant has not yet got any approval under the incentive scheme. So there are some GST-linked incentives there in the state, but we are awaiting the approval.

Highlights potential future benefits from tax incentives for the new plant, but notes that approvals are still pending, creating uncertainty.

Asked by Bharat Sheth

Target Market Share for Alkaline Battery Direct
We are currently holding about 16% market share. And about a year back, it was less than 10%. So we will continue to grow in that direction. My sense is; we should be looking at exiting with 20% share.

Provides a clear market share target for a key growth segment, indicating aggressive expansion plans.

Asked by Mahindra A

2 min read 6 chapters

Detailed narrative

Q4 & FY26 Performance Overview

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.

Battery Segment Growth and Premiumization

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.

Jammu Manufacturing Facility Commissioning

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.

Balance Sheet Strengthening and Debt Reduction

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.

Flashlight and Lighting Segments

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.

Outlook and Strategic Priorities for FY27

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.

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