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📊 Havells India Q1 FY26 Results Analysis at CMP ₹1532

Lesson 162/173 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

📊 Havells India Q1 FY26 Results Analysis at CMP ₹1532

(Quarter Ended June 30, 2025 | NSE: HAVELLS)

🚀 Recent Insights & Highlights

Tepid Summer, Subdued Consumer Demand: Weak summer season vs last year hit cooling products (fans, air coolers, Lloyd ACs); industrial and infra demand for cables remained strong.
Cost Discipline: Management contained expense growth to offset impact of lower sales.
Strategic Move: Invested ₹600 Cr in Goldi Solar for a 9.09% stake, accelerating entry in renewables—a long-term value driver.
Segment Divergence: Robust cables growth, but electrical consumer durables and Lloyd suffered sharp drops due to seasonality.

🏭 Consolidated Financial Analysis

1. Income Statement Snapshot

₹ Cr	Q1 FY26	Q4 FY25	Q1 FY25	YoY (%)
Revenue	5,438	6,532	5,798	-6.2%
Net Profit	352	522	411	-14.3%
EBITDA	520	761	576	-9.8%

Profit Margins:

Margin Type	Q1 FY26	Q4 FY25	Q1 FY25
Gross Margin*	~36%	~37%	~36%
EBITDA Margin	9.6%	11.6%	9.9%
Net Margin	6.5%	8.0%	7.1%

*Approximate gross margin based on segmental and material cost data.

2. Segmental Revenue (₹ Cr)

Segment	Q1 FY26	Q1 FY25	YoY (%)
Switchgears	630	576	+9.3%
Cables	1,933	1,521	+27.1%
Lighting & Fixtures	374	386	-3.1%
Electrical Cons. Durables	906	1,055	-14.1%
Lloyd Consumer	1,262	1,924	-34.4%
Others	334	336	-0.8%
Total	5,438	5,798	-6.2%

📍Regional/Segment Trends:

Cables: Highest YoY growth (capacity expansion, infra demand)
Lloyd & ECD: Impacted heavily by unseasonal rains and shorter summer

3. Key Valuation & Profitability Ratios

Metric	Q1 FY26	Q1 FY25	FY25	Current (CMP ₹1532)
EPS	5.62	6.56	23.75	—
P/E	—	—	—	68x (TTM basis)
ROE	17.6%	19.3%	—	—
ROCE	23.7%	25.9%	—	—

Liquidity: Current Ratio 1.8x | Inventory Days 71 | Debtor Days 16

🏪 Industry-Specific KPIs – Consumer Electricals Focus

Volume Growth: Strong for Cables (infra/industrial), weak for Consumer Durables and Lloyd.
Pricing Trends: ~10% YoY LED price deflation in Lighting.
Market Share: Cables and Switchgears likely gaining, Lloyd and ECD losing share short-term.

📈 FY26E Sales & Profit Projections

Past Trends:

Period	Sales Growth	Profit Growth	Net Margin
Q1 FY25	20%	42%	7.0%
H1 FY25	18%	26%	6.5%
9M FY25	16%	16%	6.3%
FY25	17%	16%	6.7%

FY26E (Estimate):

Sales Growth: Likely to be muted at ~6-9% (considering Q1 and normal seasonality; Q1 sets a weak base)
Net Profit Margin: ~6.5-7% (assuming recovery in Lloyd/consumer demand in H2)
Profit Growth: 5% possible for FY26E if demand recovers in H2

🔮 Outlook: Near-Term & Long-Term

Near-Term (1-2 Quarters)

Consumer demand to remain soft till festive season; recovery expected post-monsoon
Lloyd, ECD to improve if weather normalizes; cable/infra to stay strong

Long-Term (2-3 Years)

Strategic Solar Entry: Investment in Goldi Solar gives Havells a direct play in India's energy transition.
Premiumization & Market Expansion: Product upgrades, branding, rural reach to drive long-term growth.
Operating Leverage: Once demand normalizes, margins should bounce back.

⚖️ Conclusion for Long-Term Investors

🌟 Positives

Well-diversified across B2B (Cables, Switchgears) and B2C (Lloyd, ECD)
Strong balance sheet, consistent cash flows
Aggressive move into renewables—a long-term multi-bagger theme
Margin discipline and capital allocation track record

⚠️ Risks

Seasonal, weather-related demand swings
High P/E (premium valuation)—requires sustained earnings growth
Prolonged consumer slowdown could delay recovery in Lloyd/ECD

🧭 Investment Stance:

Cautiously Optimistic for FY26. Accumulate on dips for long-term investors, focus on management’s execution of the renewables and premiumization strategy.

📢 Disclosure

This analysis is provided solely for informational purposes and does not constitute investment advice. Investors should perform their own due diligence before making investment decisions.

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