According to reports from Business Standard, Crisil Ratings has upgraded Eureka Forbes's corporate credit rating to 'Crisil AA/Stable' from the previous 'Crisil AA-/Positive'. The rating agency stated that this upgrade reflects their belief that the business risk profile of the Eureka Forbes Group will continue to strengthen over the medium term. The improvement is expected to be driven by sustained growth in the scale of operations and steady improvement in operating profitability. As per the latest filings with BSE Limited and NSE India Limited, the rating upgrade impacts all instruments carrying the aforementioned rating, with no withdrawals or assignments related to any instruments.
As reported by Business Standard, operating margins have remained stable over the past quarters on a quarter-on-quarter basis, supported by various cost-rationalisation initiatives, better operating leverage, and optimisation of the cost structure. This stability has been achieved despite the group's continued investments in brand building, advertising, and product innovation. Revenue growth has remained healthy, with 11% growth in fiscal 2026 and 15% growth during the first quarter of fiscal 2027. Growth has been driven by volume-led increase across key categories, improved realisations through the ongoing premiumisation of the product portfolio and the recent price increase.
According to Business Standard, Crisil Ratings expects the group to achieve revenue growth of over 13-15% in fiscal 2027 while maintaining operating margins above 12%. This is expected to support an increase in net cash accruals to over ₹290 crore in fiscal 2027 from ₹272 crore in fiscal 2026 (after adjusting for non-cash provisions). The financial risk profile remains strong, supported by a comfortable capital structure, conservative financial policy, and robust debt protection metrics.
As reported by Business Standard, the business profile continues to benefit from the group's established position in the domestic consumer home appliances market, strong brand equity, extensive distribution and service network, and diversified product portfolio. Liquidity remains robust, supported by cash and cash equivalents of over ₹443 crore and liquid investments of approximately ₹62 crores as on 31 March 2026. The rating continues to reflect the group's healthy market position in the domestic health and hygiene segment, strong distribution network, healthy financial risk profile and efficient working capital management.
According to Business Standard, Eureka Forbes's scrip fell 2.17% to currently trade at ₹399.75 on the BSE following the rating announcement. The group, along with its subsidiaries and step-down subsidiaries, is engaged in manufacturing, selling and servicing water purifiers, vacuum cleaners, air purifiers, water softeners, and filters, marketing its products under the flagship Aquaguard and Forbes brands.
