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Informist, Monday, Dec. 8, 2025

 

By Rajesh Gajra

 

NEW DELHI – Eureka Forbes Ltd.'s double-digit revenue growth in its products business for the first half of 2025-26 (Apr-Mar) was on the back of strong volume growth and product mix, and not price hikes, Managing Director and Chief Executive Officer Pratik Pota said in an interaction with Informist Monday. "There was no price hike; if anything, we took price reductions," Pota said.

 

The company, which sells water purifiers, water softeners, vacuum cleaners, air purifiers, and other similar consumer products, had reported product revenue growth in "high teens" for the September quarter and double-digit revenue growth for the June quarter. Double-digit volume growth and product mix were the driving forces behind the double-digit product revenue growth in Apr-Sept, Pota said. The CEO said, going ahead, the product categories the company operates will grow across the board.

 

Eureka Forbes does not give detailed segmental breakdown of revenue data in its quarterly investor presentations or its annual report, except for broad commentary on the year-on-year growth trajectory.

 

On the company's service segment, which provides annual maintenance contracts and spare parts on the products it sells, Pota said the company does not give quarterly guidance but expects the segment to be a strong pillar of revenue growth over a five-year period. "The sales of filters (spare part for water purifiers) are also going to be a big driver of growth for us over the long term," he said.

 

In the current financial year, the company had reported double-digit bookings growth in the annual maintenance contracts in both the September and June quarters. The service segment growth had ticked up slightly to 3% in FY25 from near-flat growth in FY24, according to data from the company's latest annual report.

 

Large-scale customer dissatisfaction had led to a sharp slowdown in service segment revenue for a period of time prior to FY25. The company had embarked on a transformation program for this segment. "I think we've made a lot of progress on that. Our customer satisfaction scores... (and) technician ratings... have improved dramatically. We've also made major improvements in arresting outliers when there is a service failure," Pota said.

 

The company's CEO said the growth performance in its products and service segments has come in a challenging demand environment at the macro level. "I think that the whole degree of (macro) difficulty continues. And obviously, like any consumer business, we are also impacted by demand," Pota said. He said the company is hopeful that things will turn around.

 

For Apr-Sept. Eureka Forbes had reported a revenue growth of 13% on year to INR 13.8 billion and a net profit growth of 29% to INR 1 billion. On Monday, shares of the company closed 0.9% down at INR 630 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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