Eureka Forbes’ 312 percent AMC price hike slows bookings as analysts question service-growth outlook
AI Market Summary
Eureka Forbes' 312% AMC price hike appears to have softened service bookings and pushed renewals into deferral, raising doubts about prior double-digit service growth guidance. Management acknowledged the pricing response differs from products and guided Q2 service revenue growth to be broadly similar to Q1, with greater dependence on in-year bookings. The mix implies near-term risk to service-led margin and revenue momentum despite headline Q1 results benefiting from one-offs.
Impact level
● Low
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▼ Bearish
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Eureka Forbes told investors through FY26 that its annual maintenance contract (AMC) business had turned around, but analysts said on the Q1 FY27 earnings call that service growth looked flat or only marginal. A year earlier, fresh service bookings were growing at a doubledigit pace, while the latest quarter coincided with a 312 percent AMC price increase that management said led some customers to postpone renewals. The deferrals have raised questions about whether prior guidance for doubledigit service revenue growth can still be met.
