Eveready FY26 Profit Soars 108% to ₹171.53 Cr, Board Recommends ₹2.50 Dividend

Eveready Industries India Ltd announced its full fiscal year results, reporting consolidated revenue of ₹1,459.10 crore and profit after tax (PAT) of ₹171.53 crore for the year ending March 31, 2026.

Reader Takeaway: Profit surge driven by operational efficiencies and tax benefits; CCI penalty remains a key watch point.

Full Year Financial Highlights

Eveready Industries India Ltd's Board of Directors approved the audited financial results for the fiscal year ended March 31, 2026. The company reported consolidated revenue of ₹1,459.10 crore, an increase from ₹1,346.00 crore in FY25.

Profit after tax (PAT) for FY26 jumped over 108% to ₹171.53 crore, up from ₹82.44 crore in the prior fiscal year. This strong performance led to a higher basic Earnings Per Share (EPS) of ₹23.60.

The Board recommended a final dividend of ₹2.50 per equity share for FY26, totaling ₹18.17 crore. This dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Statutory auditors Singhi & Co. issued a clean audit report, providing an unmodified opinion on the financial results.

Drivers of Profit Growth

The sharp profit increase stems from operational efficiencies and the recognition of a ₹85.09 crore Deferred Tax Asset. This asset was recognized after evaluating concessional tax rates under Section 115BAA.

Furthermore, the company recognized a ₹105.20 crore net profit from selling leasehold rights at its Noida plant, adding to the year's strong earnings.

The proposed dividend reflects a shareholder-friendly stance and signals confidence in the company's financial standing and future cash generation.

Company Background and Strategy

Eveready Industries India Ltd (EIIL) is a well-known name in India's consumer goods sector, particularly for its batteries and lighting products. The company holds a significant market share in dry cell batteries and flashlights.

EIIL joined the Williamson Magor Group in 1993. Since 2021, the Burman family, who also promote Dabur India, has held a majority stake, with a focus on driving growth and profitability.

EIIL is strategically expanding its premium product range. This includes commissioning a new, greenfield alkaline battery manufacturing plant in Jammu, designed to boost operational efficiency and cost competitiveness.

The company has also proactively resolved past disputes, such as settling a long-standing arbitration case for ₹15 crore.

Impact on Shareholders and Operations

Shareholders can benefit from the recommended ₹2.50 per share dividend, pending approval.

The company's move to the concessional tax regime (Section 115BAA) has resulted in a significant deferred tax asset, boosting its net profit figures.

The sale of leasehold rights at the Noida plant provided a one-time boost to the company's earnings this fiscal year.

Key Risks and Potential Issues

Eveready faces a significant risk from a ₹171.55 crore penalty imposed by the Competition Commission of India (CCI) in 2018 for cartelisation. The company has appealed this penalty.

The appeal is ongoing, and the outcome remains uncertain. No provision has been made in the company's accounts for this penalty.

The company is also monitoring new Labour Codes from Central and State authorities. While no immediate financial impact is expected for the current period, an incremental liability of ₹9.38 crore has been recognized for their implementation.

Competitive Landscape

In the battery market, Eveready competes with Indo National Ltd (Nippo) and Panasonic Energy India Company Ltd. Notably, Indo National also faced a CCI fine in the 2018 case, while Panasonic received a waiver.

In lighting and electrical products, Orient Electric Ltd is a key competitor.

Key Financial Metrics Comparison

• Consolidated Total Income increased from ₹1,346.00 crore in FY25 to ₹1,459.10 crore in FY26.
• Consolidated Profit Before Tax rose from ₹98.51 crore in FY25 to ₹118.28 crore in FY26.
• Consolidated Profit After Tax surged from ₹82.44 crore in FY25 to ₹171.53 crore in FY26.
• Basic EPS grew from ₹11.34 in FY25 to ₹23.60 in FY26.

Looking Ahead: What to Monitor

• Shareholders' approval for the recommended dividend payout.
• The outcome of the ongoing legal proceedings concerning the CCI penalty.
• Further developments and financial implications regarding the implementation of new Labour Codes.
• Performance and ramp-up of the new alkaline battery facility in Jammu.