Why are Eureka Forbes shares rising in trade today? Share price up 11%

Business Standard

16-05-2025

Eureka Forbes share price: Eureka Forbes share price was in demand on the last trading session of the week i.e. Friday, May 16, 2025, as the scrip zoomed as much as 10.68 per cent to hit an intraday high of ₹598.70 per share.
However, at 1:45 PM, Eureka Forbes share price was trading 8.57 per cent higher at ₹587.25. In comparison, BSE Sensex was trading 0.18 per cent lower at 82,384.58 level.
What is the reason behind the northward movement in Eureka Forbes share price?
Eureka Forbes share price was buzzing in trade on the back of a healthy March quarter of financial year 2025 (Q4FY25) results.
The company's profit more than doubled (up 137.5 per cent year-on-year), to ₹50.8 crore in the March quarter of FY25, from ₹21.4 crore in the March quarter of FY24.
Its revenue from operations increased 10.8 per cent Y-o-Y to ₹612.5 crore in Q4FY25, from ₹553.1 crore in the same quarter last year.
Adjusted earnings before interest, taxes, depreciation and amortisation (Adj. Ebitda) jumped 28.8 per cent annually to ₹79.7 crore, from ₹61.9 crore a year ago.
Subsequently, Adj Ebitda margin expanded 183 basis points (bps) to 13 per cent in the March quarter of FY25, from 11.2 per cent in the same quarter last year.
Pratik Pota, MD and CEO of Eureka Forbes, said, 'We are pleased to exit the second full year of transformation with yet another quarter of double-digit growth and lifetime high profitability. In Q4, continuing business revenue grew by 10.9 per cent Y-o-Y, and this was the sixth successive quarter of double-digit growth. Led by operating leverage, Ebitda margins touched 13 per cent for the first time. The momentum in our product business sustained and our innovations and growth investments helped the products grow in high teens.'
Eureka Forbes outlook
Looking ahead, the company's focus will be on driving service revenue.
'Several transformation initiatives have been under way, and I am pleased to report that we are seeing green shoots in our service revenue. At the same time, we will stay the course on innovations, step up our growth investments further, and drive margin improvement. The progress we have achieved in two years of our transformation and with the momentum of sustained double-digit growth and lifetime high margins in Q4 give us the confidence and the energy to drive sustained profitable growth in the year ahead,' Pota added.
About Eureka Forbes
Eureka Forbes Limited is among India's leading brands in health and hygiene solutions. With a legacy spanning over four decades, the company has evolved into a diversified, multi-product, omni-channel organisation.
Its product portfolio includes water purifiers, vacuum cleaners, and air purifiers. Eureka Forbes reaches customers through a robust network that spans direct sales, retail, e-commerce, and institutional channels.