Eureka Forbes Limited — PPTs, 16-05-2025: Investor Presentation

1. Financial Highlights:

Eureka Forbes posted revenue of Rs. 612.5Cr in Q4, up 10.8% YoY, driven by 10.9% growth in continuing businesses. Adjusted EBITDA rose 28.8% YoY to Rs. 79.7Cr, with margin expansion of 183bps to a record 13.0%. Profit after tax surged 137.5% YoY to Rs. 50.8Cr. For FY25, revenue increased 11.3% YoY to Rs. 2,436.1Cr, with continuing business growing 12.0%. Adjusted EBITDA climbed 25.9% to Rs. 285Cr, improving margins by 136bps to 11.7%. PAT jumped 78.4% YoY to Rs. 163.3Cr, roughly ten times the FY23 level. Operating expenses (ex-A&SP) stayed well-controlled at 36% of revenue, driving healthy operating leverage. Free cash flow was strong at Rs. 214Cr with ROCE exceeding 350%, benefiting from low capex and efficient working capital.

2. Strategic Initiatives & Growth Drivers:

The company increased advertisement and sales promotion spend by 25% YoY, fueling growth in water purifiers and robotic vacuum cleaners, which saw sustained high-teens growth. Post-quarter, Eureka Forbes onboarded Shraddha Kapoor as brand ambassador for the robotics segment. Emphasis remains on scaling service revenue alongside innovation and operational efficiency to further improve margins.

3. Business Developments:

No major acquisitions this quarter. Brand-building activities have intensified, particularly in vacuum cleaners and robotics. Transformation efforts are yielding positive signs, especially through growth in service revenues. Portfolio rationalization continues with exits from non-core businesses like health conditioners and safety devices.

4. Market Position & Competitive Advantage:

Eureka Forbes retains leadership in water purifiers and vacuum cleaners, backed by a trusted 40+ year brand and a wide omni-channel presence including direct sales, retail, e-commerce, and institutions. Its network of 19,500+ service personnel strengthens customer loyalty. Structural cost benefits and a negative working capital model support strong free cash flow, creating a durable competitive edge.

5. Investor Implications:

Robust double-digit growth, record margins, and strong cash flow signal positive growth potential. Focus on service revenue scaling and innovation-driven expansion offers a compelling growth runway. Execution of transformation initiatives and continued margin expansion will be key drivers. Investors should monitor the sustainability of growth investments and margin improvements for confirmation of momentum.