Eveready Industries India , a leading battery and flashlight manufacturer, reported a 6.7% year-on-year revenue growth in the second quarter of fiscal year 2026 (Q2FY26). However, the company faced challenges due to one-time charges, resulting in a net loss for the quarter.

Financial Performance

The company's EBITDA margins remained healthy at 12.70%, reflecting strong underlying operating performance. However, Eveready incurred one-time charges totaling INR 37.70 crore, which significantly impacted its bottom line.

One-Time Charges

The one-time charges included:

1. INR 15.00 crore for arbitration settlement with Real Touch
2. INR 22.70 crore for strategic ex-gratia payments to 160 workers as part of manufacturing realignment

These charges resulted in a net loss of INR 7.90 crore for the quarter.

Segment Performance

Batteries

• Alkaline battery segment showed strong momentum with 60% growth
• Alkaline market share expanded to 16.30% from 15.30%
• Carbon zinc batteries maintained leadership with 59% market share across 4.5 million outlets

Flashlights

• Rechargeable flashlights delivered double-digit growth
• Battery-operated segment declined

LED Lighting

• Achieved healthy volume growth with 10.60% revenue increase

Strategic Developments

1. The Jammu alkaline battery facility, with a 360 million unit capacity, remains on track for completion by the end of FY26.
2. The arbitration settlement removes all capital structure restrictions, allowing the company freedom to manage assets and raise capital if needed.

Future Outlook

Eveready Industries is focusing on innovation, efficiency, and consumer engagement to navigate opportunities and deliver steady profitable growth. The company's strong distribution network of over 4.5 million outlets and strengthened digital route-to-market backbone continue to enhance market reach and channel efficiency.

The implementation of mandatory BIS certification for flashlights by January 2026 is expected to benefit organized players like Eveready, potentially leading to market consolidation.

While the company faces challenges in the short term due to one-time charges, its strong market position in batteries and growth in the alkaline and LED lighting segments suggest potential for recovery and growth in the coming quarters.

Eveready Industries India Ltd , a leading manufacturer of batteries and flashlights, reported its financial results for the quarter and half-year ended September 30, 2025. The company experienced revenue growth but faced a net loss in the second quarter of fiscal year 2026.

Financial Highlights

• Revenue from operations for Q2 FY2026 stood at ₹386.27 crores
• The company reported a net loss for the quarter, contrasting with a profit in the same period last year
• For the first half of FY2026, revenue reached ₹760.41 crores

Exceptional Items

Eveready recognized exceptional charges totaling ₹44.75 crores during the half-year:

• ₹29.75 crores for non-recurring ex-gratia payments to workmen on separation
• ₹15.00 crores toward settlement of an arbitration proceeding

Board Appointments and Re-appointments

The Board made several key decisions:

1. Appointed Mr. Aditya Chand Burman as Additional Director (Non-Executive Non-Independent) effective November 5, 2025
2. Re-appointed two Independent Directors for second terms

Legal Proceedings

Eveready faces a pending penalty of ₹171.55 crores from the Competition Commission of India. The company has filed an appeal with NCLAT and received a stay order.

Business Segments

Eveready operates in the consumer goods segment, marketing:

• Dry cell batteries
• Rechargeable batteries
• Flashlights
• Lighting products

Despite the challenges reflected in the quarterly loss, the revenue growth suggests continued consumer demand for Eveready's products. The company's performance in the coming quarters will be crucial to assess its ability to navigate current market conditions and return to profitability.