IFB Industries Limited, a prominent player in the home appliances and engineering sectors, has reported mixed financial results for the first quarter of fiscal year 2026. The company saw a 5.33% year-on-year increase in revenue but faced significant challenges in maintaining profitability.

Revenue Growth and Profitability Decline

IFB Industries posted revenue of INR 1,310.82 crores in Q1 FY26, up from INR 1,244.44 crores in the same quarter last year. However, the company's profitability metrics showed a notable decline:

Factors Affecting Performance

The company attributed the decline in profitability to several factors:

1. Commodity price increases
2. Currency depreciation
3. Increased fixed costs, including:
   • Customer Sales Representative (CSR) expenses
   • Professional fees
   • E-waste expenses

Management's Response

IFB Industries' management acknowledged the weak performance, with Chairman Bikramjit Nag stating that the company has "slipped." To address these challenges, the company is implementing cost optimization initiatives, including:

1. Targeting INR 200 crores in material cost savings over two years
2. Aiming for INR 75 crores in fixed cost reduction
3. Establishing a pricing committee to better manage commodity costs

Segment Performance

Washing Machines

The company aims for 20-25% growth in front-load washers and 35% growth in top-load washers.

Air Conditioners

Despite a 30% industry-wide drop in Q1, IFB expects 25-30% growth for the full year.

Refrigerators

IFB Refrigeration Limited, in which IFB Industries holds a 40% stake, sold 118,161 units in Q1.

Future Outlook

IFB Industries is targeting double-digit EBITDA margins by the end of FY26. The company expects to realize INR 60-80 crores in cost savings during FY26, with the full INR 200 crores target to be achieved over two years.

Conclusion

While IFB Industries faces short-term profitability challenges, the management remains committed to implementing cost-saving measures and driving growth across its product segments. The company's ability to execute these initiatives effectively will be crucial in improving its financial performance in the coming quarters.

IFB Industries has scheduled an investor conference call to discuss its financial performance for the first quarter of the fiscal year 2025-26. The call, set for August 6, 2025, at 4:00 PM IST, will cover both standalone and consolidated unaudited financial results for the quarter ended June 30, 2025.

Management Participation

The company's leadership team will be present to address investors and analysts. Key participants include:

• Mr. Bikramjit Nag, Chairman
• Mr. P.H. Narayanan, Managing Director - Engineering Division
• Mr. Soumitra Goswami, Chief Financial Officer
• Mr. C.S. Govindaraj, Executive Director - Manufacturing (HAD)
• Mr. Jayanta Chanda, CFO - Engineering
• Mr. Ranjan Mohan, National Sales Head - Home Appliances
• Mr. Kartik Muchandi, Head - Finance & Accounts (HAD)

Conference Call Details

Investors and analysts can join the call through various means:

• Primary Dial-in Number: +91 22 6280 1304
• Local Dial-in Number: +91 22 7115 8205
• Express Join with DiamondPass™ (No Wait Time): A link is provided for quick access
• International Toll-Free numbers are available for participants from several countries

Investor Presentation

IFB Industries has also released an investor presentation for the quarter ended June 30, 2025. This presentation, along with the conference call link, is available on the company's official website at www.ifbindustries.com .

Additional Information

The company has informed the BSE Limited and the National Stock Exchange of India Ltd about this upcoming investor call, adhering to regulatory disclosure requirements. The notification was filed on August 4, 2025, demonstrating IFB Industries' commitment to keeping investors and the market informed about its financial discussions and performance updates.

Investors and interested parties are encouraged to review the investor presentation before the call to gain insights into the company's performance for the quarter. The call promises to provide a comprehensive overview of IFB Industries' financial results and operational highlights for Q1 FY26, offering valuable information for stakeholders and market analysts alike.