Eureka Forbes Limited announced its Q3FY26 financial results on February 04, 2026, demonstrating resilient performance with 8.0% YoY revenue growth despite challenging market conditions. The company reported strong momentum in robotics and air purifiers while facing headwinds in its core water purifier segment.

Q3FY26 Financial Performance

The company delivered solid operational metrics with revenue from operations reaching ₹645.4 crores compared to ₹597.8 crores in Q3FY25. Adjusted EBITDA margin expanded 57 basis points YoY to 11.3%, supported by healthy gross margins at 60.8%.

Business Segment Performance

The quarter showcased multiple growth drivers across different product categories. Robotics business continued its strong trajectory with robust growth, while air purifiers witnessed exceptional broad-based demand with revenue scaling 3x YoY. However, water purifiers faced challenges due to high channel inventory and post-festive consumer demand slowdown.

Labour Code Impact and Exceptional Items

The quarter was significantly impacted by exceptional charges of ₹40.4 crores (pre-tax) due to implementation of new Labour Codes. The Government of India notified four Labour Codes on November 21, 2025, consolidating 29 existing labour laws, resulting in one-time incremental impact on retiral benefits. This reduced reported PAT to ₹9.0 crores from ₹39.0 crores before exceptional items.

Nine Months FY26 Performance

For the nine months ended December 31, 2025, the company maintained strong operational performance with revenue from operations increasing 11.1% YoY to ₹2,026.6 crores. Adjusted EBITDA grew 17.7% YoY to ₹241.7 crores with margin expansion of 67 basis points to 11.9%.

Management Commentary and Outlook

Commenting on the performance, MD and CEO Pratik Pota highlighted the company's resilient performance in a challenging macro environment. He emphasized that despite water purifier challenges, the company outperformed the category and gained market share during the quarter. The management remains confident about the underlying business potential and long-term ambition of achieving strong and sustained profitable growth, with multiple growth vectors now clearly established across robotics, air purifiers, and service transformation.

Analyst Conference Call Recording Available

Following the results announcement, Eureka Forbes Limited has made available the audio recording of its conference call with analysts and investors held on February 05, 2026. The recording has been uploaded on the company's website under regulatory disclosure requirements as per Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Eureka Forbes has been directed by a court to settle 10% of its outstanding tax liability of ₹162.20 crore, marking a significant development in the company's ongoing tax dispute proceedings.

Court Directive Details

The judicial order requires the home appliances and water purification solutions company to pay a portion of its total tax obligation as part of the dispute resolution process. The court's decision to mandate a 10% settlement suggests an interim measure while the broader tax matter remains under legal consideration.

Financial Impact

The following table outlines the key financial parameters of the court directive:

Legal Proceedings Context

This court directive represents a structured approach to resolving the tax dispute, with the partial payment requirement potentially serving as a compliance measure. The 10% settlement order indicates the court's intention to secure some immediate resolution while allowing the legal process to continue for the remaining liability.

The development highlights the ongoing nature of tax-related legal proceedings that can significantly impact corporate financial obligations and compliance requirements.