The National Human Rights Commission has mandated supply chain audits at Eureka Forbes following a raid exposing child labour, raising questions over the company’s compliance and its ambitious expansion targets.
The National Human Rights Commission has ordered supply chain audits at Eureka Forbes and other consumer companies after officials rescued four minors from a vendor in New Delhi, adding a fresh compliance risk for a company already trying to reassure investors about growth. The commission has asked Eureka Forbes, Havells and the Indian arm of Hindustan Unilever to explain how their supplier oversight works after the raid at YY Harness, where the children were reportedly found working long hours.
For Eureka Forbes, the scrutiny comes at a sensitive moment. The company recently reported revenue of ₹700.4 crore for the April-June quarter, up 15.3% from a year earlier, while consolidated net profit rose 47% to ₹56.98 crore, although that increase included a one-off gain. Later quarterly disclosures showed revenue of ₹607.87 crore for the period ended June 25, 2026, with net income of ₹38.68 crore, underlining a business that is still expanding even as governance questions sharpen.
The company has said it is carrying out its own review of vendor practices. Hindustan Unilever has publicly stated that YY Harness is not one of its business partners, a distinction that could matter if the commission’s inquiry broadens beyond the immediate incident. For investors, the bigger question is whether the probe leads to higher monitoring costs, supplier changes or broader disruptions across the company’s outsourcing network.
The timing also matters because Eureka Forbes has set out ambitious medium-term targets, aiming to lift revenue to ₹5,400 crore-₹5,600 crore and triple EBITDA to ₹800 crore-₹850 crore by FY30, according to Business Standard and Outlook Business. The company, which is controlled by Advent International after the private equity firm bought a stake from the Shapoorji Pallonji Group in 2022, has tied that plan to deeper market penetration, innovation and stronger online sales. But the NHRC action is a reminder that growth plans can be complicated by vendor risk, ESG concerns and the leverage attached to the company’s shareholding structure, with promoter pledging still a closely watched issue in the market.
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