Whalesbook
Eveready Reports Strong Q4 with 13x Profit Jump Driven by Exceptional Gain
Eveready Industries India Ltd. reported a strong fourth quarter for fiscal year 2026, with net profit surging thanks to a significant ₹102.7 crore exceptional gain. Alongside this, the company's core business showed positive revenue momentum.
Exceptional Gain Boosts Profit Figures
Eveready Industries India Ltd. posted a consolidated net profit after tax of ₹141.8 crore for the fourth quarter ending March 31, 2026. This marks a more than thirteen-fold increase from the ₹10.4 crore profit in the same quarter last year. The reported Q4 profit includes a substantial exceptional gain of ₹102.7 crore. For the full fiscal year 2026, net profit reached ₹171.5 crore, up from ₹82.4 crore in FY25. This full-year figure also incorporated a net exceptional gain, totaling ₹48.6 crore.
Revenue Growth Driven by Batteries and Lighting
Consolidated revenue from operations grew 9.4% year-on-year to ₹327.2 crore in Q4 FY26, up from ₹299.0 crore in Q4 FY25. This growth was largely driven by the battery segment, where alkaline battery sales surged 82%. The lighting segment also saw revenue increase by 17%. Eveready noted continued market share gains, with its alkaline segment nearing a 20% share and holding over 52% in dry cell batteries. Despite input cost pressures, earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to ₹28.7 crore from ₹25.9 crore, keeping the EBITDA margin steady around 9%.
New Jammu Plant Fuels Premium Battery Push
A key strategic move was the commissioning of Eveready's new ₹200 crore alkaline battery manufacturing plant in Jammu. This facility, the company's first major manufacturing expansion in over a decade, has an annual installed capacity of 456 million alkaline batteries, with potential to produce around 360 million units at peak. The plant is intended to strengthen Eveready's position in the premium alkaline battery market, meet growing domestic demand, and tap into export opportunities through white-label manufacturing for markets in Europe and the US. The venture is supported by the Production Linked Incentive (PLI) scheme, aiming to reduce import reliance and improve margin efficiency.
Market Valuation and Competitors
Eveready Industries India Ltd. has a market capitalization of approximately ₹2,375 crore. Its trailing twelve-month (TTM) Price-to-Earnings (P/E) ratio is about 58.76, which is higher than the industry average of roughly 44.4. Analysts have offered varied outlooks, with some projecting a 12-month price target around ₹445.74. Key competitors in the battery sector include Indo National (Nippo), Panasonic Energy India, and Duracell. Duracell has historically dominated the premium alkaline segment, while Eveready and Indo National collectively hold a strong position in the broader dry-cell battery market.
Long-Term Performance Concerns and Market Shifts
Looking at Eveready's long-term financial performance, there are areas of concern despite recent positive results. Over the past five years, the company's revenue has shown a compound annual growth rate (CAGR) of -1.06%, significantly trailing the industry average of 7.42%. Net income has contracted at a yearly rate of -14.29% over the same period, contrasting with the industry's 6.43% growth. The broader battery market is also shifting towards lithium-ion technology, posing a long-term challenge for manufacturers of traditional alkaline and zinc-carbon batteries. Additionally, fluctuations in raw material costs, especially for zinc, and competitive pricing in the lighting segment can affect core profitability.
CEO Confident on Future Growth, Market Expansion Expected
Eveready's Chief Executive Officer, Anirban Banerjee, expressed confidence in the company's future. He stated that investments in capacity, product portfolio, and new developments position Eveready favorably for FY27, with ambitions to increase market penetration and optimize operations. The board has recommended a dividend of ₹2.50 per equity share for FY26. The Indian battery market is projected for substantial growth, expected to expand from approximately USD 14 billion in 2026 to over USD 23 billion by 2031, driven by electrification and energy storage demand.