Eureka Forbes Limited Earnings Summary — Q1 FY2027
Eureka Forbes Reports Strong Q1 Profit Growth Driven by Operational Efficiencies and Gratuity Reversal
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹701 Cr is 15.3% higher year-on-year.
- Revenue has compounded at 11.1% annualised over the last 10 quarters.
- Net profit of ₹55 Cr is 43.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 52.8% annualised across the period.
- Operating margin stands at 9.6% in Q1 FY2027.
- Operating margin compressed by 47 bps year-on-year.
- Over the last two years operating margin has contracted by 29 bps.
- PBT margin is 10.6%.
- Expenses grew 15.9% against revenue growth of 15.3%.
- Operating profit of ₹67 Cr is 9.9% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 66/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 701 | 684 | 645 | 773 | 608 | 613 | 598 | 673 | 553 | 553 |
| Expenses | Improving | 633 | 599 | 578 | 678 | 546 | 535 | 539 | 601 | 498 | 500 |
| Operating Profit | Improving | 67 | 85 | 67 | 96 | 61 | 78 | 59 | 72 | 55 | 53 |
| Operating Margin | Stable | 9.6% | 12.5% | 10.4% | 12.4% | 10.1% | 12.7% | 9.8% | 10.7% | 9.9% | 9.5% |
| Other Income | Volatile | 27 | 5 | -35 | 6 | 7 | 6 | 4 | 6 | 2 | -13 |
| Interest | Volatile | 1 | 2 | 3 | 2 | 1 | 1 | 1 | 2 | 2 | 2 |
| Depreciation | Improving | 19 | 20 | 17 | 16 | 16 | 15 | 15 | 14 | 14 | 14 |
| Profit Before Tax | Volatile | 74 | 68 | 12 | 83 | 52 | 68 | 47 | 62 | 42 | 24 |
| Tax | Accelerating | 19 | 17 | 3 | 22 | 13 | 17 | 12 | 16 | 11 | 3 |
| Net Profit | Volatile | 55 | 51 | 9 | 62 | 39 | 51 | 35 | 47 | 31 | 21 |
| Net Margin | Volatile | 7.9% | 7.5% | 1.4% | 8.0% | 6.3% | 8.3% | 5.8% | 6.9% | 5.6% | 3.9% |
Key Takeaways
- Consolidated revenue from operations grew by 15.2% year-on-year to ₹700.4 Crore.
- Profitability was significantly boosted by an exceptional gain of ₹19.54 Crore due to a reversal of gratuity expense.
- The company amended its gratuity scheme during the quarter to align with the Payment of Gratuity Act, 1972.
- Employee benefit expenses increased 10.8% YoY to ₹97.1 Crore, including ₹6.66 Crore in ESOP charges.
- Standalone results outperformed consolidated figures in terms of tax efficiency, though margins remain slightly lower than the prior quarter.
- The company remains focused on a single business segment: Health, Hygiene products and services.
- Management continues to monitor the impact of the four new Labour Codes notified by the Government of India.
Management Guidance
The company continues to monitor developments on the new Labour Codes and will assess accounting implications as rules are notified. Strategy remains focused on Health and Hygiene leadership.
Sentiment Shift
Improving
Revenue growth is accelerating compared to the 3-year CAGR, and net profit margins are benefiting from both operational leanings and one-time accounting adjustments.
Outlook
Management is steering the company toward double-digit operating margins post-demerger, focusing on brand premiumization and cost optimization in the consumer durables space.
From the Annual Report (Key Quotes)
“The company is primarily engaged in the business of Health, Hygiene products and its services.”
“Consequent to the amendment... the gratuity obligation was remeasured, resulting in a reversal of gratuity expense of ₹1,953.77 lakhs.”
“Impact due to grant of ESOP's has been considered while arriving at the basic and diluted EPS.”
Official Quarterly Documents
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This summary is AI-generated from Eureka Forbes Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.