Eureka's FY30 Goal: Twofold Revenue On Back Of 17x Profit Surge In Three Years

For almost a decade, this market leader remained constrained by low single-digit growth, low margins, and limited earnings visibility. That trajectory began to change after private equity investor Advent International acquired a controlling stake in late 2021. Since then, growth has accelerated, with the company reporting eight consecutive quarters of double-digit growth, while profitability has risen faster.

Revenue growth improved from 2.2% in FY23 to 12% in FY25 and to 12.7% in H1 FY26, while Ebitda margin nearly doubled to 12.2% from 6.3%. With operating leverage playing out, net profit rose almost 10x to Rs 163 crore in FY25 from Rs 17 crore in FY23. It also moved from a net-debt position to generating free cash flow of Rs 214 crore.

This turnaround rests on category leadership in a market estimated at Rs 23,000 crore. Eureka Forbes manufactures, sells, rents, and services Water Purifiers (Aquaguard), Vacuum Cleaners (Forbes), and Air Purifiers. It is a leader in the water purifier and vacuum cleaner categories. The Aquaguard brand is considered a strong consumer brand in India.

Water purifiers remain the core revenue driver, contributing 44% of FY25 revenue of Rs 2,436 crore, followed by service revenue (33%), which includes annual maintenance, filters, and spare parts; vacuum cleaners (14%); and others, including air purifiers. Growth was broad-based in FY25, with water purifier revenue rising 18%, vacuum cleaners 13%, and service revenue 3%, resulting in overall revenue growth of 12% compared with 8% in FY24.

With this momentum, Eureka is entering the next phase of its growth journey, aiming to scale the business by FY30. It plans to more than double its revenue to Rs 5,600 crore, driven by volume expansion and premiumisation. Adjusted Ebitda is expected to grow 3x to Rs 850 crore, up from Rs 285 crore in FY24, with margins expanding by 330 bps to 15%.

Water purifiers will be the main growth driver, given product penetration of 6% in FY23. To capitalise on this demand, Eureka has addressed affordability.

The company has lowered the entry price for Aquaguard to Rs 6,299 and introduced a two-year filter life, reducing the cost of ownership. This approach is delivering results, with 70% of customers in this range being first-time buyers. Eureka is also aligned with premiumisation.

It continues to push higher-end products that command an average selling price nearly 1.4x the category average. Innovation includes offerings such as hot water purifiers like Blaze Insta, which have captured over 50% share in the hot water purifier segment. It is adopting technology to make products smarter and automated.

Eureka has launched an IoT-enabled water purifier with real-time filter life tracking and automated service request generation. These capabilities improve customer experience and strengthen long-term engagement with the brand. AI-based churn prediction supports conversion and retention.

Beyond product sales, Eureka is strengthening its Service and Maintenance (AMC) segment. With less than 25% AMC penetration, this segment represents recurring revenue potential within an installed base of over 15 million customers. To capitalise on this, it has introduced tiered, multi-year AMC plans to improve affordability, increase average selling price, and boost customer retention.

Eureka is also venturing into the filters-and-spare-parts ecosystem. It plans to participate across the value chain by engaging an estimated 70,000-plus untapped service technicians through loyalty, insurance, and incentive programmes under the Aquaguard Champions initiative. This approach aims to drive adoption of genuine filters and spares and deepen the recurring revenue pool.

Vacuum cleaners currently have penetration of 2% in FY23. This market is projected to grow from Rs 500 crore in FY23 to Rs 3,000 crore by FY30. Eureka aims to capitalise on the consumer shift away from traditional cleaning methods, with robotics emerging as a growth engine.

Robotics accounted for 60% of vacuum cleaner sales, growing 4x during FY23–FY25. This demand is supported by consumer preferences for convenience (83% of users), cleaning quality (71%), and effectiveness in removing fine dust (61%). Given the penetration level, it aims to achieve 25-fold growth by FY30 and reach revenue of Rs 1,000 crore.

To achieve this, it has built an omnichannel presence, with products available across channels. To attract a broad customer base, Eureka offers products across the economy to premium price points and supports them with updates. Customer experience and cost efficiency are improving through virtual assistance, which resolves up to 50% of service issues remotely.

Air purifiers have penetration below 1%, with the market estimated at Rs 230 crore in FY23. This market is expected to reach Rs 1,000 crore by FY30. Eureka’s air purifier business has scaled nearly 10x over the three years ending FY25. It is expanding its portfolio into smart, connected models and plans to leverage a 15-million-plus customer base to drive cross-selling of air purifiers.

Revenue grew 12.7% year-on-year to Rs 1,381 crore in H1 FY26. Quarter two was Eureka’s eighth consecutive quarter of double-digit growth, driven by volume-led growth in water purifiers across economy and premium segments. Robotics and service revenue also reported double-digit growth.

Adjusted Ebitda increased by 9.6% to Rs 168.5 crore, with margins expanding by 70 basis points to 12.2%. Net profit grew by 28.8% to Rs 100 crore. Management remains confident in delivering double-digit growth while expanding margins.

At Rs 630 per share, Eureka is trading at a price-to-earnings multiple of 66x, compared with Crompton at 33.5x and V-Guard at 50x. Eureka’s turnaround, Advent backing, improving execution, and visibility into penetration-led growth support its earnings profile.