1. Opening Hook
When your brand name literally means “Eveready,” you can’t afford to blink — not even when profit slips into the red. Yet here we are, with Eveready balancing battery buzz, lighting flickers, and a long list of “one-offs” that sound more permanent than they should.
The company says it’s “restructuring,” but between factory closures, ex-gratia payouts, and arbitration settlements, it’s starting to look like a corporate detox camp. Still, management’s tone was oddly upbeat — apparently, everything negative is “strategic.”
Keep reading — because the second half promises “buoyancy,” and we’ll find out whether that’s management optimism or just hot air. 🔋
2. At a Glance
- Revenue up 6.7%– A slow burn, not quite “Eveready.”
- EBITDA margin 12.7%– Holding charge better than expected.
- PAT: -₹7.9 crore– One-time hits, but investors heard this “one-time” before.
- A&P spend 10% of sales– Marketing charged up like an alkaline cell.
- Debt-equity 0.7x– Not bad; they’re funding growth without frying the circuit.
- Battery market share: 59% (carbon zinc), 16.3% (alkaline)– Solid domination and growing voltage.
- Lighting up 10.6%– But price compression dims the glow.
3. Management’s Key Commentary
“Consumer demand stayed resilient; rural consumption improving.”(Translation: Villages are buying torches again, thank the monsoon gods.)
“Alkaline battery share rose to 16.3% — fastest growth in years.”(Because phones, remotes, and kids’ toys finally need something stronger than nostalgia.)
“Ex-gratia cost of ₹22.7 crore for worker separation.”(Translation: Paid people to leave so profits could return someday. 😏)
“Arbitration settlement cost ₹15 crore, issue now closed.”(Good news: fewer lawyers. Bad news: still paying for the past.)
“Flashlights growing in rechargeables, but battery-operated fading.”(Consumers now prefer USB over AA — shocker.)
“No fundraising planned right now.”(Code for: Let’s stabilize before the next shockwave.)
“Route-to-market stabilized, focus shifting to premium and digital.”(Finally, the company map and GPS agree on where it’s heading.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Commentary |
|---|---|---|---|---|
| Revenue | ₹376 Cr | ₹352 Cr | +6.7% | Modest spark amid flat flashlight sales |
| EBITDA | ₹48 Cr | ₹46 Cr | +4% | Stable despite cost shocks |
| EBITDA Margin | 12.7% | 13% | -30 bps | Not much leakage — surprisingly solid |
| PAT | -₹7.9 Cr | ₹19 Cr | N/A | “One-time” hits killed the charge |
| A&P Spend | 10.2% | 9.5% | +70 bps | Advertising louder than profits |
| Market Share (Batteries) | 59% (CZ) / 16.3% (Alkaline) | 57% / 15.3% | Up | Rural demand recharged |
| Debt-Equity | 0.7x | 0.8x | ↓ | Still lightweight on leverage |
(EBITDA up, PAT zapped. Cost management steady — for now.)
5. Analyst Questions
Q:“Any more ex-gratia payments coming?”A:“Not immediately, unless ‘strategic realignment’ strikes again.”
Q:“Is Noida factory shutting down?”A:“Let’s call it a ‘realignment’—that word sounds nicer.”
Q:“How’s the Jammu alkaline plant shaping up?”A:“On schedule, on track, and hopefully on budget.”
Q:“Can margins improve post restructuring?”A:“Yes, once we stop paying people to leave and machines to start.”
Q:“Fundraising or new categories ahead?”A:“Not now, but mosquito rackets are buzzing with opportunity.” 🦟
6. Guidance & Outlook
Management expects6–7% revenue growthin H2, mirroring H1 momentum — a polite way of saying “steady but unspectacular.” TheEBITDA marginis projected to hold around 12–13%, though Q3–Q4 may
