💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, total revenue grew 6.7% YoY to INR 386.8 Cr. Segmental growth: Batteries grew 7.6% YoY to INR 257.3 Cr (64% of revenue); Lighting grew 10.6% YoY to INR 93.0 Cr (24% of revenue); Flashlights declined 2.2% YoY to INR 47.4 Cr (12% of revenue).

Geographic Revenue Split

Not disclosed in available documents, though the company mentions expanding penetration in under-served geographies and sub-segments.

Profitability Margins

Gross margins are approximately 25%. Operating EBITDA margin for Q2 FY26 was 12.7%, reflecting strong underlying performance despite price compression in the LED category.

EBITDA Margin

Operating EBITDA for Q2 FY26 was INR 49.1 Cr, a 2.8% YoY increase. EBITDA margins have stabilized at 10.5-11.5% compared to historical levels of 7-10%.

Capital Expenditure

The company is investing in a new greenfield facility for alkaline batteries, with INR 80-90 Cr drawn down for this project as of late 2025.

Credit Rating & Borrowing

Gearing improved to 0.7x as of March 31, 2025, from 1.4x in 2022. Debt protection is healthy with an interest coverage ratio of 5.97x and NCATD of 0.33x.

⚙️ Operational Drivers

Raw Materials

Zinc is the primary raw material, accounting for approximately 50% of the total cost of sales.

Key Suppliers

Not disclosed in available documents, but the company utilizes long-term supplier contracts and vendor consolidation.

Capacity Expansion

Current capacity utilization is low at some plants (specifically D-size batteries). Expansion is focused on a new greenfield alkaline battery facility to support premiumization.

Raw Material Costs

Raw material costs represent ~50% of sales. The company uses partial hedging for zinc to stabilize gross margins against price volatility.

Manufacturing Efficiency

Operating efficiency is being improved through regional distribution hubs to reduce last-mile costs and the implementation of Sales Force Automation (SFA).

Logistics & Distribution

Distribution reach covers over 4.5 million outlets. RTM rationalization is used to achieve cost efficiencies.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be driven by premiumization (shifting to alkaline batteries), distribution expansion (4.5 million outlets), and a new electrical accessories line. The company is also expanding its institutional segment presence for margin expansion.

Products & Services

Dry cell batteries (Carbon Zinc and Alkaline), LED lighting products, flashlights, and electrical accessories.

Brand Portfolio

Eveready (100+ year legacy).

New Products/Services

Introduction of a new electrical accessories line and a revamped alkaline battery portfolio.

Market Expansion

Targeting institutional segments and under-served sub-segments/geographies through a revamped route-to-market approach.

Market Share & Ranking

Strong market share in dry cell batteries (specific percentage not disclosed).

🌍 External Factors

Industry Trends

The industry is seeing a shift toward alkaline batteries and premiumization, while the LED lighting segment faces persistent price compression.

Competitive Landscape

Key competitors include Duracell India Operations Pvt Ltd, Panasonic Energy India Company Ltd, and Indo National Ltd.

Competitive Moat

Durable advantages include a 100-year brand legacy, a massive distribution network of 4.5 million outlets, and cost leadership in dry cell batteries.

Macro Economic Sensitivity

Economic activity is aided by strong monsoons and GST 2.0, which sustain retail momentum.

Consumer Behavior

Shift toward premium value-added offerings and alkaline batteries for high-drain devices.

Geopolitical Risks

Risks include political stability in India and globally, which can impact trade priorities and commodity prices.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by GST rationalization and government regulations on commodity pricing and trade.

Environmental Compliance

The company monitors sustainability and ESG-related risks through its Risk Management Committee.

Taxation Policy Impact

Not disclosed in available documents; mentions monitoring government regulations and taxation.

Legal Contingencies

Pending CCI penalty hearing (Nov 19-20, 2025); INR 15 Cr settlement for arbitration with Real Touch; INR 29.8 Cr H1 FY26 ex-gratia payment for workmen separation.

⚠️ Risk Analysis

Key Uncertainties

Outcome of the CCI penalty (unquantified), zinc price volatility (50% of costs), and continued price erosion in the LED lighting market.

Geographic Concentration Risk

Not disclosed; focus is on expanding national penetration.

Third Party Dependencies

Dependency on zinc suppliers; mitigated by vendor consolidation and long-term contracts.

Technology Obsolescence Risk

Risk of structural value erosion in traditional LED lighting; mitigated by R&D and product differentiation.

Credit & Counterparty Risk

Receivables quality is managed through disciplined working capital and a debt-equity ratio of 0.7x.