Havells India’s shares lost about 5% after higher input costs and advertising expenses dragged down its March quarter (Q4FY26) Ebitda, lower by 6% year-on-year (y-o-y), to ₹724 crore. Revenue grew by a modest 2.4% to ₹6,688 crore, with a milder start to summer impacting the sale of cooling products, intense competition, and cautious trade sentiments amid global macro uncertainties.
The Lloyd Consumer segment, including air conditioners, refrigerators, and televisions, remained a pain point. It reported an Ebit loss for the fourth straight quarter. The segment contributed almost one-fourth of Havells’ total revenue. Lloyd's revenue fell 19% y-o-y, albeit on a relatively high base. Lloyd was also hit by cost pressure due to changes in energy efficiency norms, a rise in copper prices, and rupee depreciation. So, Lloyd’s FY26 revenue fell by 23% against 35% growth in FY25, with negative Ebit of ₹203 crore against profit of ₹131 crore in FY25. While the company has taken price increases of 8-15% in Q4FY26, further hikes would be needed to fully pass on increased costs.
On the plus side, cables & wires (C&W) Q4FY26 revenue was up 14%, led by strong demand for industrial cables. C&W is Havells’ largest segment, contributing 37% of total revenue and almost half of Ebit last quarter. Havells’ expanded cable manufacturing capacity would be commissioned by the end of FY27, entailing an investment of ₹340 crore. But the industry may see increased competition with the expected entry of new players, such as the Adani group in a joint venture with Praneetha Ecocables, and UltraTech Cement, in FY27.
Renewables emerge as a growth lever
The ‘others’ segment revenue grew by 48% in Q4FY26 and 25% in FY26, led by renewables segment products such as solar pumps, solar power generating systems, home lighting kits, etc. While ‘others’ form a smaller 8% share in revenues now, it could be a key growth driver in the medium term, aided by strong demand.
Reflecting the muted demand and competition, for FY26, Havells revenue and Ebitda grew by just about 3% each, against 17% and 16% in FY25.
Weak results and a challenging cost scenario pushed many analysts to cut their earnings estimates. Nomura Global Market Research has cut its earnings per share (EPS) guidance for FY27-28 sharply by 11% and 6%, whereas Nuvama Institutional Equities has trimmed it marginally by 1% and 4%.
Havells’ shares are down over 20% in the last year, and trade at about 40x FY27 EPS estimates, as per Bloomberg consensus. While a weaker monsoon and an extended summer are expected to drive near-term growth recovery, sustained volume growth is needed. Besides, an improvement in Lloyd’s volumes and margin is crucial to improve overall profitability.