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Eureka Forbes spurts after robust Q4 numbers

16-May-25 14:04 Hrs IST

Revenue from operations grew 10.8% YoY to Rs 612.5 crore in Q4 FY25. Continuing businesses grew marginally higher at 10.9% YoY.

Adjusted (Adj.) EBITDA increased 28.8% YoY to Rs 79.7 crore in Q4 FY25 from Rs 61.9 crore in Q4 FY24. Adj. EBITDA margin improved 183 bps YoY to 13%. Margins improved YoY in every single quarter of FY25.

Adj. PBT (before exceptional items and ESOP) increased 39.9% YoY to Rs 68 crore in Q4 FY25 from Rs 48.6 crore in Q4 FY24.

During the year, profit after tax increased 78.4% YoY to Rs 163.3 crore from Rs 91.5 crore during FY24. Revenue from operations grew 11.3% YoY to Rs 2,436.1 crore. Continuing businesses grew higher at 12% YoY. Adj. EBITDA increased 25.9% YoY to Rs 285.0 crore from Rs 226.3 crore during FY24. Adj. EBITDA margin improved 136 bps YoY to 11.7%. (FY24 margin: 10.3% and FY23 margin: 6.3%).

Commenting on the Q4 FY25 & FY25 performance, Pratik Pota, MD, and CEO, Eureka Forbes said, We are pleased to exit the second full year of transformation with yet another quarter of double-digit growth and lifetime high profitability.

In Q4, continuing business revenue grew by 10.9% YoY, and this was the sixth successive quarter of double-digit growth. Led by operating leverage, EBITDA margins touched 13% for the first time. The momentum in our product business sustained and our innovations and growth investments helped the products grow in high teens.

Stepping back and looking at the full year picture, the impact of transformation initiatives is now visible on multiple fronts. Growth stepped up from 2.2% in FY23 to 7.9% in FY24 and now to 12.0% in FY25 on the back of strong growth in our product business. Margins have expanded from 6.3% in FY23 to 10.3% in FY24 and now to 11.7% in FY25. The FY25 margin expansion is after a 25% YoY increase in growth investments. Net surplus is at Rs 284 Cr. In terms of capabilities, we have reclaimed thought leadership on innovations, our customer metrics are at an all-time high and our cost program is generating fuel for growth.

Looking ahead, our focus will be on driving service revenue. Several transformation initiatives have been under way, and I am pleased to report that we are seeing green shoots in our service revenue. At the same time, we will stay the course on innovations, step up our growth investments further, and drive margin improvement.

The progress we have achieved in two years of our transformation and with the momentum of sustained double-digit growth and lifetime high margins in Q4 give us the confidence and the energy to drive sustained profitable growth in the year ahead.

Eureka Forbes is India's leading health and hygiene brand. With over four decades of existence, it is today a multi-product and an omni-channel organization. Eureka Forbes' product portfolio encompasses water purification, vacuum cleaning and air purification. It has direct, retail, e-commerce and institutional sales channels, an inventive business partner network and one of the most expansive service networks across India.