Analyst Concall
Havells India sees challenges in Apr-Jun as transitory
This story was originally published at 19:42 IST on 21 July 2025
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--Havells India: Feel challenges in June quarter were transitory
--CONTEXT: Comments by Havells India's mgmt in post-earnings analyst concall
--Havells India: Co's rural presence nascent, expanding product range there
--Havells:Lloyd Consumer on right path structurally on revenue, profitability
--Havells: Lloyd Consumer inventory at high level currently
--Havells: Will focus on renewables in next few years
--Havells: Expect switchgears business to pick up in second half of FY26
--Havells: Expect core categories to grow Diwali, festival season onwards
By Anand JC
NEW DELHI – Havells India Ltd. Monday said the challenges it faced during the first quarter of 2025-26 (Apr-Mar) were only transitory, and that revenue growth and margin improvement can be expected over the coming quarters. The company expects its core category to start seeing growth from festival season onwards, which includes Diwali, it told analysts in a post-earnings conference call.
The company reported its financials for the June quarter after market closed. Its net profit of INR 3.5 billion, down 14% on year, missed analyst estimates. Its revenue of INR 54.4 billion also missed estimates, and contracted for the first time since the June quarter of FY21. Weakness in revenue was mainly driven by a poor performance by Lloyd Consumer segment.
"Lloyd (Consumer), I think we are looking at a fairly medium- to long-term play," the management said. "What is very encouraging is the fact that we actually see that we grew extremely well last year, first quarter, and then again because of structural demand, there is a degrowth in this year," it added. The inventory of Lloyd Consumer segment at the company level, which was at a "decent" level during the March quarter, was high as of Jun. 30, the company said.
"From a seasonal point of view, it's not a very large inventory. But, we are now coming into a low season for AC (air conditioner) sales", Havells India said. It hopes that inventory levels will get readjusted in the next two quarters. Weakness in the segment was transitory as the company expects Lloyd Consumer to be structurally on the right path for revenue growth and profitability.
Havells India expects switchgears business to pick-up in the second half of the year after overall consumer demand was subdued in the last few quarters.
On queries of its presence in rural India, the company said that the contribution from those areas to its overall revenues has remained around 5-6%. Havells India said that its presence is currently nascent, but the growth is faster than urban areas. "One of the reasons also that we are expanding, we now have the base of distribution. We are expanding our product range in those markets," the company said.
"We will keep adding product categories into the rural area," the management said.
Havells India invested INR 6 billion in Goldi Solar Pvt. Ltd. to increase its focus in the renewable sector, through a minority investment of around 9%. Goldi Solar makes and supplies solar modules and inverters. "We are definitely looking at a very sizeable growth in our solar business or renewables business," Havells India said. The company earned around INR 5 billion through its solar business last year, and expects it to cross INR 10 billion-INR 15 billion in the next couple of years.
"It's not only our products like solar panels or inverters which get sold. It also builds a pipeline for selling cables, switchgear, and other light products also. So, I think we are looking at this sector for future growth opportunities," the management said.
On Monday, shares of Havells India closed 0.9% higher at INR 1,531.60 on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj
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