Eveready Industries delivered a mixed set of earnings for Q3 FY26, with net profit declining 42.7% year-on-year to ₹7.5 crore compared to ₹13 crore in the same period last year. According to reports from CNBC TV18, the company's revenue grew 10.1% year-on-year to ₹367.2 crore from ₹333.5 crore in the corresponding quarter of the previous fiscal year, indicating steady topline growth despite the profit decline. The PAT margin shrunk from 3.9% to 2.0% during the quarter, while EBITDA margin improved marginally to 9.1% compared with 8.7% in the year-ago period.
The company's battery segment emerged as the biggest revenue contributor with ₹252.1 crore, representing a substantial 62% year-on-year increase. As reported by CNBC TV18, lighting products followed with ₹89.5 crore (up 24% YoY), while flashlights contributed ₹35.5 crore (up 9% YoY) during the quarter. The Batteries segment contributed 67% to Q3 revenue and achieved 11.1% YoY growth, with the Alkaline battery sub-segment driving volume expansion and market share gains, ending December 2025 with a 19% share. The Flashlights segment, accounting for 24% of revenue, grew 10.5% YoY, with the Rechargeable segment now representing 57% of flashlight revenue.
Operating performance showed positive momentum with EBITDA increasing 13% year-on-year to ₹33.3 crore compared to ₹29 crore in the corresponding quarter last year. According to CNBC TV18, EBITDA margin widened marginally to 9% during the quarter, compared with 8.7% in the year-ago period, representing a modest improvement of 30 basis points despite the sharp decline in net profit. For the nine-month period (9M FY26), revenue grew 7.9% YoY to ₹1,128.2 crore and EBITDA rose 9.6% YoY to ₹138.8 crore with margins holding steady at 12.3%, while 9M PAT saw a substantial 58.6% decrease to ₹29.8 crore.
The primary driver behind the PAT contraction for both Q3 and 9M FY26 were significant exceptional items. In Q3, an incremental liability of ₹9.4 crore was recognized towards employee benefit obligations due to new labor code rules. For the 9M period, the impact was amplified by ₹29.8 crore for ex-gratia payments to workmen on separation and ₹15.0 crore for an arbitration settlement. These one-off charges distorted the true operational profitability, making direct YoY PAT comparisons misleading without adjustment. The company is implementing strategic initiatives including a new greenfield plant and asset divestment for debt reduction.
Despite the mixed earnings results, shares of Eveready Industries closed 4.19% higher at ₹345.40 apiece on the NSE on February 5, as reported by CNBC TV18. The company attributed steady demand across urban, rural, and mobility-led applications driven by core portable power categories, indicating positive market sentiment despite the profit decline. Despite competitive pressures, the company aims to boost revenue in the Lighting segment by focusing on premium luminaires and accessories.
