Brokerages flag margin pressure at India's Eureka Forbes despite strong results

Eureka Forbes

14/08/2026 07:54

** Water purifier maker Eureka Forbes EURK.NS shares fall 2.5% to 432.35 rupees 
** June-qtr net profit rises 47.3% YoY; revenue from operations up 15.2%  
** ICICI Securities says commodity inflation and currency depreciation weighed on gross margin, while higher advertising and promotional spending to expand retail presence led to a contraction in EBITDA margin
** "We expect the near-term margin expansion to remain measured as the company continues to prioritise growth investments," - ICICI 
** Nomura cuts TP on stock to 572 rupees from 600 rupees; Says with price hikes and operating leverage, EBITDA margins should see y-o-y expansion from H2 FY27 onwards 
** Nomura lowers 2027-28 EPS estimates by 4% and 6%, respectively, after lowering its EBITDA margin forecasts by 30 bps and 50 bps to 12.4% and 13.1% 
** All 14 brokerages covering the stock rate it "buy" or higher; their median PT is 647.5 rupees
** YTD, EURK down 30.2%

 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.Parmar@thomsonreuters.com;))