Eveready Industries India Ltd

ESG rating update

• CRISIL ESG Ratings assigned Eveready ESG score Crisil ESG 58.
• Rating based on fiscal 2026 disclosures and publicly available data.
• Eveready did not engage CRISIL; rating prepared independently by CRISIL.
• CRISIL notified company via email on 19 August 2026.

Financial Performance

• Revenue: INR 407.7 crores, +9% YoY
• EBITDA: INR 61.5 crores; margin 15.1%
• PAT: INR 37 crores; +22.3% YoY
• Battery segment revenue +11.9%; alkaline volume ~48% growth
• Alkaline market share within alkaline segment: 18%
• Lighting revenue +13.7%; premium/offers growth; LED/applications rising
• Jammu plant commercial production started 29 May 2026

Segment Trends

• Battery: alkaline growth driven by premiumization; carbon zinc flat
• Rechargeable flashlights +20% revenue; hybrid flashlight launched
• Lighting: demand strength across categories; pricing stabilization evident

Balance Sheet and Cash Flow

• Debt around INR 165 crores
• Jammu capex about INR 90–95 crores (plant & machinery)
• Total Jammu investment > INR 200 crores
• Noida asset sale: one plot completed, second to close soon
• GST Jammu NCSS incentive: 3x refunds on plant & machinery over 10 years
• EPR: pricing clarity pending; ongoing regulatory dialogues
• Renewable energy: solar at Jammu; pursuing asset-light leasing model

Projects and Capex

• Jammu: 29 May commercial production; 10% gross-margin uplift in first year
• Wires & MC Bs: initial sourcing; capex 2x–3x growth; potential 1–2% market-share gain
• Lighting product launches: portable mosquito vaporizer; SHOR rechargeable torch; Xtrabright bulb

Outlook and Guidance

• Alkaline market growth >20% by value and volume
• Alkaline exit share target: 25%–30% in 2 years
• Debt-free target in 4–5 quarters
• Jammu margin uplift ~10% in first year; monitoring for stabilization
• Commodity volatility (zinc) may prompt pricing actions
• No immediate acquisitions; long-term plan to be shared in 2–3 quarters
• BIS norms implemented; EPR pricing clarity awaited; continue renewable-energy focus

Q&A Highlights

• Alkaline market share up to 18%; zinc remains majority; overall dry cell share >50%
• Jammu plant: capex ~INR 90–95 crores; 29 May commercial start; 10% gross-margin uplift expected
• Wires/MCBs: start completed; aim to grow 1–2% market share; capacity 2x–3x growth
• GST Jammu NCSS: 3x refunds on plant & machinery; 10-year period; approvals pending
• EPR: pricing clarity awaited; ongoing discussions with authorities
• Debt trajectory: around INR 165 crores; target debt-free in 4–5 quarters
• Noida asset sale: one plot completed; second closing soon; no immediate fund infusion planned
• Battery market sizing: INR 3,200 crores overall; alkaline ~INR 550 crores; alkaline growth ~20% CAGR
• CCI matter: hearing end-September; potential INR 150 crores cash outgo if unfavorable

AGM Details

• AGM held on 11 August 2026 via VC/OAVM.
• Started 11:30 IST; concluded 1:55 IST.
• Remote e-voting from 8–10 August 2026; voting during AGM.

Key Resolutions

• Adopt standalone and consolidated financial statements for year ended 31 March 2026 (Ordinary).
• Declare dividend of Rs 2.50 per share for FY 2025-26 (Ordinary).
• Appointment of director replacing Utsav Parekh on rotation, eligible for reappointment (Ordinary).
• Appointment of director replacing Girish Mehta on rotation, eligible for reappointment (Ordinary).
• Approval of annual commission to Arjun Lamba up to Rs 3.00 Crores for 3 years (Special).
• Remuneration of Rs 10.00 Lakhs to each Non-Executive Independent Director (Special).
• Ratify cost auditor remuneration Rs 3.85 Lakhs plus taxes for FY 2026-27 (Ordinary).

Dividend

• Dividend declared: Rs 2.50 per equity share.

Director Changes

• Reappointment of Utsav Parekh and Girish Mehta (retiring by rotation).

Auditors

• Cost auditor remuneration approved: Rs 3.85 Lakhs plus taxes for FY 2026-27.

Remuneration & Approvals

• NED remuneration Rs 10 Lakhs each approved.

Notes

• All resolutions approved with requisite majority; Scrutinizer’s report issued.

Meeting Details

• Date: 10 August 2026.
• Type and mode: Earnings conference call; virtual.
• Event organizer: Eveready Industries India Limited.
• Recording availability: Audio recording posted on the company investor site.

Purpose

• Purpose: Earnings results discussion for Q1FY27 with investors.

Business Overview

• Core business: batteries, flashlights, and lighting; Jammu plant expands premium portfolio and local capacity.
• No.1 battery and torch brand in India; manufacturing across six sites including Jammu.
• In Apr 2026, Jammu alkaline facility inaugurated; commercial operations started May 29, 2026.
• Innovation pipeline includes patent-applied portable liquid vaporizer and hybrid flashlights.
• 7th consecutive YoY revenue growth in Q1 FY27 at 9.0%.

Operational Highlights

• Commercial operations of Jammu plant started on 29 May.
• Batteries: alkaline volume up 56%; carbon-zinc up 8%.
• Alkaline segment revenue ₹267.6 Cr; 64% of total.
• Rechargeable flashlights revenue growth surpassed 20%.
• Lighting segment revenue ₹87.5 Cr; 21% revenue growth.
• Total Q1 revenue ₹407.7 Cr; EBITDA ₹61.5 Cr; PAT ₹37.0 Cr.
• Batteries contributed 64% of revenue; Lighting 21%.

Financial Performance

• Revenue ₹407.7 Cr; EBITDA ₹61.5 Cr; PAT ₹37.0 Cr.
• EBITDA margin 15.1%; PAT margin 9.1%.
• YoY revenue growth: 9.0%.
• Segment revenues: Batteries ₹267.6 Cr; Lighting ₹87.5 Cr.
• Alkaline volumes up ~56%; market share ~18%.
• Carbon-zinc market share ~58%.
• Jammu capacity contributed to improved operational leverage.

Strategic Priorities & Outlook

• Accelerate premium portfolio via localized Jammu manufacturing; 456 million annual capacity.
• Expand omnichannel reach: General Trade, Modern Trade, E-commerce, Quick Commerce.
• Innovate with patent-applied portable vaporizer and hybrid flashlights.
• Maintain growth momentum through price discipline and premium offerings.

Risks & Mitigation

• Rural demand strong; urban recovery slow; delayed monsoon pressures near-term demand.
• Input costs and currency volatility may pressure margins.
• Competitive intensity remains elevated; focus on premiumization and channel expansion.

Financial highlights

• Revenue from operations: INR 407.7 crore, up 9% YoY.
• EBITDA: INR 61.5 crore, margin 15.1%.
• Profit after tax: INR 37.0 crore, up 22.3%.

Business developments

• Battery segment revenue up 11.9%, alkaline volumes ~48% higher.
• Carbon zinc volumes returned to growth around 1%.
• Jammu alkaline facility commercial production commenced.
• Rechargeable flashlights grew >20%; overall segment down 6.7% due to monsoon.
• Lighting segment grew 13.7% in the quarter.
• Mosquito rackets category expanded; SHOR rechargeable torch with animal alarm launched; Xtra Bright LED bulb launched.

Outlook and strategy

• Topline momentum expected to continue; commodity and FX pressures persist; profitability guidance ongoing.
• Focus on product portfolio expansion, market presence, and sustainable growth.

Operational and cost discipline

• Margins remained stable despite inflation in zinc and inputs.
• Jammu facility scaling up; localization and operating leverage expected to improve efficiency.

Board approves Q1 FY27 results

• Board approves unaudited standalone and consolidated quarterly results for quarter ended 30 June 2026.
• Results prepared under Regulation 33 SEBI LODR; Limited Review Report enclosed.
• Board meeting held 8 August 2026; 12:00–01:40 IST.
• Results posted on the company's website.

Meeting Details

• Date and time: 10 August 2026 at 4:30 PM IST.
• Type and mode: group earnings call conducted virtually.
• Event/organiser: Q1 FY27 Earnings Conference Call hosted by Eveready Industries India Limited.
• Purpose: discuss Q1 FY27 results with analysts and investors.
• Key participants: senior management team.
• Availability: call details will be hosted on the company website.

Meeting Details

• Date: 8 August 2026; time and venue not disclosed.

Key Agenda Items

• Approval of unaudited standalone and consolidated financial results for quarter ended 30 June 2026.

Other Notes

• Trading window remains closed for designated persons and their immediate relatives until 48 hours after results declaration.