Eureka Forbes Ltd. reported a 71.4% year-on-year drop in consolidated net profit to ₹10.02 crore in the December quarter, compared to ₹35.04 crore in the same period last year. According to reports from CNBC TV18, the bottom line was significantly impacted by an exceptional loss of ₹40.44 crore related to the estimated incremental impact on retiral benefits arising from new labour codes, including provisions for gratuity and compensated leave liabilities. Excluding this exceptional item, profitability before tax remained healthy at ₹54.1 crore. The company clarified that the labour code-related impact is regulatory-driven and non-recurring in nature, and will continue to monitor further clarifications and rules to be notified by authorities regarding the labour code implementation.
Revenue from operations demonstrated steady growth, rising 8% year-on-year to ₹645.4 crore in the December quarter, up from ₹597.7 crore in the previous year. As reported by CNBC TV18, this growth was driven by steady demand across the company's health and hygiene product portfolio. Operating performance strengthened significantly, with EBITDA rising 16.3% from the year-ago period to ₹68.5 crore from ₹59 crore. The EBITDA margin improved to 10.6% from 9.8% in the year-ago period, reflecting operating leverage and cost efficiencies. This robust EBITDA growth translated into improved profitability margins, with the company benefiting from implemented cost efficiencies across the business.
For the nine months ended December 31, 2025, consolidated revenue rose to ₹2,025 crore from ₹1,824 crore a year ago, while profit after tax stood at ₹111.6 crore, broadly flat compared with ₹114.9 crore in the corresponding period last year. According to CNBC TV18, the exceptional charge booked during the year impacted the nine-month profitability figures. The company noted that the labour code-related impact is regulatory-driven and non-recurring in nature, and will continue to monitor further clarifications and rules to be notified by authorities regarding the labour code implementation.
Despite the company's steady operating performance and margin expansion, shares of Eureka Forbes are trading 4% lower after the earnings announcement, currently trading at ₹524. As reported by CNBC TV18, the market reacted negatively to the headline profit figures, with investors focusing on the substantial one-time charge impacting retiral benefits. The company will continue to monitor further clarifications and rules to be notified by authorities regarding the labour code implementation, while maintaining its focus on operational improvements and cost efficiencies.
