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Informist, Tuesday, Oct. 14, 2025

 

By Avishek Rakshit

 

KOLKATA – An uptick in Havells India Ltd.'s core segments—-wires & cables and switchgears—-along with modest gains in its consumer electrical business, is expected to drive growth in the September quarter, despite pressure from lower price realisations, according to sector analysts.

 

Havells, one of the largest wires and cables manufacturers in the country, is likely to report a 15% jump in its September quarter net profit to INR 3.1 billion and revenue is expected to rise by 6.4% to INR 48.2 billion, according to the average of estimates from nine brokerages. However, from the trailing quarter, the net profit is likely to fall nearly 11% and revenue is expected to decline a little over 11%. Havells will detail its September quarter results Friday.

 

 

Nirmal Bang Equities Pvt. Ltd. has the highest net profit estimate at INR 3.5 billion and JM Financial Institutional Securities Pvt. Ltd. has the lowest at INR 2.9 billion. JM Financial also has the lowest revenue estimate at INR 47.6 billion and the highest revenue estimate is from Kotak Institutional Equities at nearly INR 49 billion.

 

Nirmal Bang said wires and cables companies such as Havells and Polycab, the market leader, are expected to have seen healthy volume growth in the range of 10-15% in the September quarter, with strong demand from the industrial, infrastructure, and power sectors. Cable demand remains robust even in the ongoing quarter, boosted by rising government and private sector investments.

 

However, some brokerages warned that sales channels in wires and cables have an inventory overhang amid firm commodity prices. Prices of copper, the key material for wires and cables, were up 3.9% on year and aluminium costs rose 2.9% in the September quarter. Moreover, the oversupply situation may keep price realisations subdued resulting in revenue growth being lower than the volume growth, analysts said.

 

Like industry major Polycab, Havells is also likely to report a 20% on-year growth in its wires and cables business, supported by incremental volumes from its new Tumkur facility commissioned in September last year, brokerages Nirmal Bang and Kotak Institutional Equities said. The wires and cables business usually accounts for around 36% of the company's annual business and is the single-largest contributor to revenue.

 

According to Kotak Institutional Equities, Havells' switchgear business, which accounts for around 12% of its annual sales, is expected to rise 10% on year in the September quarter and the consumer electrical business under the Havells brand, which accounts for 17% of annual sales, is expected to see a 5% on-year growth.

 

However, the consumer durables business under the Lloyd brand is expected to feel some heat owing to the prolonged monsoon that negatively impacted sales of air conditioners and air coolers. The Lloyd business, which accounts for 23% of the company's annual sales and is the second-most important contributor to the top line, is expected to report an 18?cline in sales, Prabhudas Lilladher Pvt. Ltd. warned and added this decline would have a bearing on Havells' September quarter net profit. However, Nuvama Wealth Management Ltd. is of the view that cost optimisation should help Havells report a good performance on profitability.

 

Havells is expected to report earnings before interest, tax, depreciation, and amortisation of INR 4.6 billion in the September quarter, according to the average of estimates from eight brokerages. Nuvama's estimate for EBITDA is the highest at INR 5 billion and Prabhudas Lilladher's estimate of INR 4.3 billion is the lowest.

 

On Tuesday, shares of Havells closed 1.6% lower at INR 1,449.10 on the National Stock Exchange. The shares have fallen nearly 7% since the company announced its June quarter earnings in July.

 

Of the 20 research reports on the company available with Informist, 18 have a 'buy' rating on the stock at an average target price of INR 1,772.9 and two brokerages have a 'hold' rating on the stock at an average target price of INR 1,745.5.

 

The following are the Jul-Sept earnings estimates for Havells India from nine brokerages in descending order of the estimate of net profit in INR million:

 

Broker Name	Net sales (in INR million)	Net profit (in INR million)	EBITDA (in INR million)
Nirmal Bang Equities Pvt Ltd	48,840	3,472	4,567
Nuvama Wealth Management Ltd	47,863	3,398	4,991
YES Securities (India) Ltd	48,686	3,351	4,886
Anand Rathi Share and Stock Brokers Ltd	48,234	3,118
Kotak Institutional Equities	48,994	3,086	4,658
Motilal Oswal Financial Services Ltd	47,637	3,026	4,537
Elara Securities (India) Pvt Ltd	48,695	2,948	4,371
Prabhudas Lilladher Pvt Ltd	47,629	2,934	4,287
JM Financial Institutional Securities Pvt Ltd	47,592	2,929	4,426
Average	48,241	3,140	4,590

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Subhojit Sarkar

 

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