Eureka Forbes Limited, a leading player in the water purification, vacuum cleaning, and home appliances segment, reported a healthy financial performance for the first quarter of FY26. Despite a competitive market landscape and macroeconomic headwinds, the company achieved double-digit profit growth, aided by sustained consumer demand and operational efficiency improvements.
For Q1 FY26, the company reported a consolidated profit after tax (PAT) of ₹38.68 crore, representing a 20.32% year-on-year (YoY) increase compared to ₹32.15 crore in Q1 FY25. Revenue from operations stood at ₹607.87 crore, up 9.85% YoY from ₹553.38 crore in the same quarter last year.
These results underscore Eureka Forbes’ strong brand presence, resilience in consumer durables, and strategic initiatives in expanding distribution and product offerings.
Consolidated Financial Performance
The consolidated numbers reveal moderate revenue growth coupled with an even stronger improvement in bottom-line profitability, indicating operational leverage.
| Particulars | Q1 FY26 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 607.87 | 553.38 | +9.85% |
| Profit Before Tax (PBT) | 68.93 | 58.64 | +17.55% |
| Profit After Tax (PAT) | 38.68 | 32.15 | +20.32% |
| Net Profit Margin (%) | 6.36% | 5.80% | +0.56 pp |
The improvement in net profit margin, though modest, points to efficiency gains in cost control and improved sales mix, particularly in higher-margin product categories.
Standalone Financial Performance
On a standalone basis, the company delivered strong revenue growth and an even sharper increase in profits.
| Particulars | Q1 FY26 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 607.74 | 552.81 | +9.94% |
| Profit Before Tax (PBT) | 68.39 | 56.89 | +20.20% |
| Profit After Tax (PAT) | 38.52 | 31.04 | +24.11% |
| Net Profit Margin (%) | 6.34% | 5.61% | +0.73 pp |
The higher growth in standalone PAT compared to consolidated performance reflects stronger domestic market execution and an improving cost structure.
Q1 FY26 vs Q1 FY25 Highlights
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Revenue Growth: Consolidated revenue rose 9.85% YoY, driven by steady consumer demand in water purifiers and vacuum cleaners.
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Profit Growth: PAT increased 20.32% YoY, reflecting operational efficiencies and better product pricing.
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Standalone Performance: Standalone PAT growth of 24.11% outpaced revenue growth due to higher margins.
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Margins: Net profit margin improved by over half a percentage point, supported by a favourable sales mix.
Business Drivers in Q1 FY26
1. Strong Core Product Sales
Eureka Forbes’ flagship water purification segment continued to perform well, particularly in urban and semi-urban regions. Premium and mid-range models recorded healthy sales.
2. Growth in After-Sales Service Revenue
The company benefited from a robust after-sales service network, contributing to recurring revenue streams through maintenance contracts and AMC renewals.
3. New Product Launches
Q1 FY26 saw the introduction of advanced vacuum cleaning solutions and smart water purifiers with IoT features, strengthening its premium portfolio.
4. Distribution Expansion
Eureka Forbes continued expanding its retail presence and e-commerce partnerships, leading to increased market penetration.
5. Cost Optimization Initiatives
Operational efficiency programs, including supply chain optimization and reduced logistics costs, helped support profitability.
Share Price Performance
| Date | Opening Price (₹) | Current Price (₹) | Change |
|---|---|---|---|
| 11 Aug 2025 | 560.00 | 552.80 | -1.29% |
Historical Returns:
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1-Year: +9.24%
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5-Year: +2.14%
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Since Listing: +2.14%
While long-term returns have been subdued, the recent uptick in profitability could support a more positive share price trajectory in the medium term.
5-Year Financial Trend
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | Net Profit Margin (%) |
|---|---|---|---|
| FY21 | 2,050.50 | 45.20 | 2.20% |
| FY22 | 2,216.40 | 62.85 | 2.84% |
| FY23 | 2,402.15 | 90.33 | 3.76% |
| FY24 | 2,500.42 | 126.45 | 5.06% |
| FY25 | 2,650.87 | 135.82 | 5.12% |
Over the past five years, Eureka Forbes has steadily improved both revenue and profitability, with net margins more than doubling since FY21.
Peer Comparison (Q1 FY26)
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | YoY PAT Growth (%) | Net Margin (%) |
|---|---|---|---|---|
| Eureka Forbes | 607.87 | 38.68 | +20.32% | 6.36% |
| Kent RO Systems* | 315.40 | 22.10 | +15.75% | 7.00% |
| Havells India (Appliances) | 3,125.60 | 378.50 | +12.40% | 12.11% |
*Kent RO data indicative for industry comparison.
Strategic Outlook for FY26
Eureka Forbes aims to strengthen its competitive positioning through:
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Product Innovation: Focus on premium and connected appliances with smart features.
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Market Expansion: Entering underserved rural markets with affordable models.
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Brand Building: Marketing campaigns highlighting health and hygiene benefits.
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Digital Sales Channels: Scaling e-commerce partnerships for faster delivery and broader reach.
Risks to Watch
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Competition Pressure: The water purifier market is intensely competitive, with price wars impacting margins.
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Raw Material Costs: Fluctuations in commodity prices could increase production costs.
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Consumer Demand Cycles: Economic slowdowns could impact discretionary spending.
Company Overview
Founded in 1982, Eureka Forbes is a pioneer in India’s water purification and home cleaning industry. With products like Aquaguard, Dr. Aeroguard, and a strong after-sales service network, it has built significant brand equity. The company operates in over 1,500 towns and cities, with a strong presence across both offline and online sales channels.
Conclusion
The Eureka Forbes Q1 FY26 results highlight a strong start to the fiscal year, with solid revenue growth and improved profitability. PAT growth of 20.32% reflects both stable demand and operational improvements, while the product innovation pipeline and expanding distribution network position the company for steady performance in the coming quarters.
For investors, the stock offers potential as a steady consumer durables play, though competitive pressures and input cost volatility remain key watch factors. Long-term growth will depend on the company’s ability to sustain margins while capturing market share in both premium and affordable segments.
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