At a Glance
IFB Industries washed its Q1 FY26 numbers with a modest shine—Net Profit ₹25 Cr, revenue at ₹1,301 Cr, but margins are stuck at a boring 5%. While competitors flex with higher margins, IFB is still spending more on ads than some startups. The stock crashed 2.3% to ₹1,309, testing investor patience.
Introduction
This isn’t your average home appliance company; this is the one your mom trusts to wash your dirty laundry, literally. IFB makes washing machines, microwaves, ACs, and kitchen appliances. Great products, average profits. Despite global quality tie-ups, the stock’s one-year return is -27%, making investors feel like they’re drying clothes in the rain.
Business Model (WTF Do They Even Do?)
- Home Appliances (80% of revenue) – washing machines, dishwashers, ACs, modular kitchens.
- Automotive Components – fine blanked parts for vehicles.
- Service Network – repairs and AMC services across India.
Roast: They sell everything that keeps a household running, but their financial housekeeping? Needs cleaning.
Financials Overview
- Revenue (Q1 FY26): ₹1,301 Cr (+5% YoY)
- Net Profit: ₹25 Cr (-34% YoY)
- EPS: ₹6.26
- OPM: 5% (industry peers 7–12%)
Commentary: Sales grew, profits shrank—marketing costs chewed margins.
Valuation
- CMP: ₹1,309
- P/E: 46x (steep for a 5% margin biz)
- Book Value: ₹212 (P/B 6.2x)
- ROE: 16.2%
- ROCE: 19.8%
Fair Value Range: ₹1,050 – ₹1,200, unless margins improve.
What’s Cooking – News, Triggers, Drama
- New Internal Auditor appointed (Raj Agarwal replacing Rajeev Mundhra).
- Independent Director Rahul Choudhuri resigned (tenure completed).
- AC sales driving growth, but high input costs eating profits.
- No dividends – management prefers reinvestment over shareholder love.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Total Assets | 2,350 |
| Total Liabilities | 1,243 |
| Net Worth | 858 |
| Borrowings | 249 |
Remarks: Healthy, but not debt-free. Liabilities growing faster than profits.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 107 | 349 | 103 |
| Investing | -7 | -140 | -89 |
| Financing | -93 | -183 | -22 |
Remarks: Cash from ops halved—worrying trend.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 16.2% |
| ROCE | 19.8% |
| P/E | 46x |
| PAT Margin | 1.9% |
| D/E | 0.3 |
Remarks: Sexy returns on paper, but the valuation is stretched.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 4,104 | 4,942 | 5,006 |
| EBITDA | 161 | 293 | 270 |
| PAT | 17 | 129 | 115 |
Remarks: Profit down despite revenue growth—a red flag.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Voltas | 15,412 | 823 | 54 |
| Blue Star | 11,967 | 585 | 61 |
| Amber Ent. | 11,020 | 275 | 96 |
| IFB Industries | 5,006 | 115 | 46 |
Remarks: Peers grow faster and trade at similar/higher multiples.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 74.96% (stable)
- FIIs: 0.76%
- DIIs: 6.26%
- Public: 18%
- Note: No dilution, but institutional interest is weak.
EduInvesting Verdict™
Past Performance
IFB Industries has been growing revenue steadily (~14% CAGR) but profits are volatile due to high marketing spends and low pricing power.
SWOT Analysis
- Strengths: Strong brand in washing machines, expanding AC sales, decent ROCE.
- Weaknesses: Low margins, expensive stock.
- Opportunities: India’s appliance boom, premium product push.
- Threats: Aggressive competition (LG, Samsung), raw material cost volatility.
Final Word
Q1 FY26 shows that IFB can grow sales but struggles to defend margins. At a P/E of 46, this stock is priced like a luxury item in a discount store. Investors need patience and strong detergent to clean volatility stains.
Written by EduInvesting Team | 29 July 2025SEO Tags: IFB Industries, Q1 FY26 Results, Consumer Durable Stocks, Washing Machine Market
