Eureka Forbes is banking on premium products, category expansion and calibrated price increases to sustain growth, even as rising input costs and global uncertainties continue to weigh on profitability.
The company reported double-digit sales growth in the fourth quarter of FY26, driven primarily by strong demand for water purifiers, its flagship category. Growth was supported by both higher volumes and improved product mix. Towards the end of the quarter, Eureka Forbes implemented price hikes of 6-7% across key products to offset higher raw material costs and the impact of rupee depreciation.
Management said the increase has so far been accepted by distribution channels without affecting demand. The company expects growth momentum to strengthen in FY27 as it moves towards its long-term goal of doubling revenue by FY30.
Beyond water purifiers, Eureka Forbes is expanding its presence across multiple consumer appliance categories. Robotic vacuum cleaners have emerged as a significant growth driver, now contributing nearly two-thirds of the company’s vacuum cleaner business. Air purifiers recorded a sharp increase during FY26, while water softeners continued to post double-digit growth amid rising awareness of hard-water issues across India.
The company is also focusing on recurring revenue streams. Annual Maintenance Contract (AMC) bookings grew in double digits during the year, with management expecting stronger revenue contribution in the coming quarters.
Despite healthy revenue growth, profitability remains under pressure. Fourth-quarter EBITDA margin slipped slightly to 12.6% due to elevated input costs and the delayed implementation of price hikes. However, full-year EBITDA margin improved to 11.6%, supported by premiumisation and operating leverage.
Analysts remain positive on the company’s long-term prospects but have lowered earnings estimates to reflect inflationary pressures and margin risks. The target price has been revised down to ₹700 from ₹750.
Nevertheless, Eureka Forbes continues to be viewed as a strong player in India’s consumer durables market, supported by its leadership in water purification, low category penetration and opportunities for growth through premium products and adjacent categories.
