Eureka Forbes Q2 FY27: consolidated PAT +17.8% YoY to ₹74 Cr, margins expand to 12.9%

Eureka Forbes posted a broad-based beat in Q2 FY27. Consolidated revenue rose 15.1% YoY to ₹888.5 Cr (+26.9% QoQ, seasonally aided — not the headline) and consolidated PAT grew 17.8% YoY to ₹74.1 Cr (standalone PAT ₹73.3 Cr, EPS ₹3.77 vs consolidated EPS ₹3.81 — the two bases track closely, no material divergence). Both metrics ran well ahead of our pre-result Street preview, which had pencilled in revenue of ₹700-750 Cr, EBITDA margin near 12%, and PAT of ₹45-50 Cr; the actual print cleared the top end of every one of those ranges, with PAT roughly 48-65% above the guided range. The margin story is the more important half of the beat. Operating margin expanded to 12.94% from 12.65% a year ago and 12.70% last quarter, while net margin rose to 8.28% from 8.09% YoY — profit grew faster than revenue both YoY and QoQ. This goes beyond management's own guidance from the last call, which had called for FY27 EBITDA margins merely "broadly in line with FY26" given commodity and forex headwinds; instead the quarter shows margin expansion on both comparisons, with no exceptional items distorting the print (unlike Q1 FY27, whose ₹19.5 Cr one-off gratuity-reversal gain inflates the sequential base, making the +30% QoQ PAT move a weaker read than the clean +17.8% YoY number). The print also lands alongside resolution of a GST overhang: the ₹273.4 Cr show-cause notice received September 28 was rectified down to ₹4.5 Cr on October 1, just ahead of results, removing a contingent liability that had been a live pre-result concern. Less resolved is the promoter pledge, which rose to 11.53% of holding on September 22 — a balance-sheet/ownership signal this filing doesn't address and that stays on watch. The filing carries no segment breakout (Health & Hygiene is reported as a single segment under Ind AS 108), so the preview's ~43% water-purifier revenue-mix marker can't be verified from these numbers, and no management press release was available in the filing to cross-check against the print. With revenue growth accelerating and margins already ahead of the "in-line" bar management set last call, the quarter validates the "step-up in growth" management flagged more convincingly than it validates caution on margins. The open question for Q3 is whether the 12.9% OPM holds without the cushion of a clean, exceptional-free quarter, and whether the water-purifier mix continues to do the work management expects of emerging categories.