Lunolux Limited has further encumbered its stake in Eureka Forbes Limited by creating a top-up pledge over 11,418,729 equity shares. The additional pledge, constituting 5.90% of the company’s issued and paid-up share capital, brings the total number of pledged shares to 76,368,729, which represents 39.47% of the voting capital. This move signals continued reliance on share-backed financing for the promoter entity, increasing the collateral exposure for lenders.

The disclosure was made by Catalyst Trusteeship Limited, acting as the onshore security agent, under Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The top-up pledge was executed on July 28, 2026, pursuant to clause 19.2 (Collateral Shortfall) of the Facility Agreement dated May 1, 2024. Under this agreement, Lunolux Limited had previously availed a loan facility from certain lenders, primarily overseas banks eligible under Reserve Bank of India guidelines.

Prior to this transaction, on May 9, 2024, Lunolux Limited had disclosed the creation of an initial pledge over 64,950,000 shares, representing 33.56% of the share capital. The recent addition of 11,418,729 shares was required to meet the collateral maintenance obligations stipulated in the loan terms. The security agent holds these pledged shares for the benefit of the lenders and their assigns.

Shareholding Structure

Catalyst Trusteeship Limited clarified that it holds no beneficial interest in the pledged shares. The disclosure confirms that the acquirer does not belong to the promoter group but acts solely in its capacity as the onshore security agent for the lenders. The equity share capital of Eureka Forbes Limited remains at ₹193.5 crore, divided into 19,350,618 fully paid-up equity shares of ₹10 each, as per the shareholding pattern for the quarter ended June 30, 2026.

What the Numbers Show

The increase in the pledged stake from 33.56% to 39.47% indicates that Lunolux Limited required additional collateral support within roughly two years of the initial facility arrangement. With nearly 40% of the company’s voting capital now encumbered, any further deterioration in the value of Eureka Forbes shares could trigger additional margin calls or require further pledging of available holdings, assuming Lunolux retains unpledged shares. The diluted capital stands at ₹208.4 crore, reflecting outstanding convertible securities.

Eureka Forbes Limited reported an 11.3% increase in revenue for the Financial Year 2025-26 (FY26), driven by consistent double-digit growth across its core water purifier business and emerging categories like robotics and air purifiers. The company’s adjusted EBITDA margin expanded to 12.2% in FY26, up from 6.3% in FY23, reflecting improved operational efficiency and premiumisation strategies. Shareholders are invited to the 17th Annual General Meeting (AGM) on Wednesday, August 19, 2026, at 12:00 Noon IST via Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The meeting agenda includes the adoption of audited standalone and consolidated financial statements, the re-appointment of Sahil Dalal as a Non-Executive Non-Independent Director, and the ratification of remuneration for Cost Auditors.

The Integrated Annual Report, dispatched electronically on July 25, 2026, highlights a strategic shift towards a diversified health and hygiene portfolio. While Electric Water Purifiers (EWP) remain the largest revenue contributor at 43% of FY26 turnover, service revenue accounted for 16%, and vacuum cleaners contributed 10%. Emerging segments, including robotics, water softeners, and air purifiers, collectively represented 31% of revenue, underscoring the success of the company’s diversification strategy. Management noted that robotic vacuum cleaners grew nearly threefold over the last two years, contributing nearly two-thirds of total vacuum cleaner revenues in FY26.

Financial performance was bolstered by robust cash generation, with Free Cash Flow (FCF) reaching ₹237 crore in FY26, representing a cash conversion ratio of 148% of Profit After Tax (PAT). This strong liquidity position allowed the company to move from a net debt of ₹32 crore in FY23 to a net cash surplus of ₹443 crore in FY26. Despite this financial strength, the Board proposed retaining the entire PAT of ₹160 crore (standalone) and did not recommend a dividend for FY26, aligning with its policy to reinvest profits into growth initiatives, innovation, and working capital optimisation.

Key Financial Metrics (FY26)

Note: Reported PAT at ₹160 crore for FY26. Consolidated PAT includes non-controlling interests.

Strategic Outlook and Operational Highlights

The company’s transformation journey has transitioned from "Turnaround" to "Take-Off," with a target to double revenue to ₹5,400–5,600 crore and triple EBITDA to ₹800–850 crore by FY30. Key drivers include democratising access to safe drinking water through affordable entry-point products and expanding the service ecosystem. The company strengthened its service network, comprising over 9,000 technicians across 19,500 pin codes, achieving record-high performance in service turnaround times and customer satisfaction metrics.

Innovation remained a core focus, with the launch of smart water purifiers, robotic cleaning stations with AI-enabled automation, and advanced air purifiers. The company also emphasised sustainability, achieving a 4% reduction in greenhouse gas emissions (Scope 1 and 2) and diverting over 1,000 metric tonnes of e-waste and plastic waste from landfills. Both manufacturing facilities in Dehradun and Bengaluru received the GC-Mark “Green Company” certification.

What the Numbers Show

A notable divergence exists between the company’s operational profitability and its bottom-line reporting due to exceptional items. While the core business delivered strong margin expansion and cash generation, the consolidated statement of profit and loss recorded an exceptional loss of ₹4,044.18 lakh. This charge stems from the incremental impact on retirement benefits following the notification of new Labour Codes by the Government of India in November 2025. Excluding this one-time regulatory impact, the underlying operational health remains robust, with consistent double-digit revenue growth and expanding operating margins indicating successful execution of the multi-category strategy.

AGM and Voting Details

Pursuant to Section 108 of the Companies Act, 2013 and Regulation 44 of the SEBI Listing Regulations, remote e-voting will commence on Sunday, August 16, 2026, at 09:00 AM IST and conclude on Tuesday, August 18, 2026, at 05:00 PM IST. The cut-off date for determining voting eligibility is Wednesday, August 12, 2026. Members holding shares on the cut-off date can cast their votes electronically via the National Securities Depository Limited (NSDL) platform. The facility for appointment of proxies is not available for this virtual meeting.

In accordance with Regulation 36(1)(b) of the SEBI Listing Regulations, 2015, Eureka Forbes Limited has sent a letter providing a weblink and QR Code for accessing the Notice of the 17th Annual General Meeting and the Integrated Annual Report for Financial Year 2025-26 to those Members who have not registered their email address with the Company, Registrar and Share Transfer Agent, or the Depositories. The same documents are available on the Company's website at www.eurekaforbes.com .