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Informist, Thursday, Apr. 16, 2026

By Avishek Rakshit

KOLKATA – Price increases implemented in the March quarter to offset cost pressures in an otherwise muted demand environment are expected to weigh on volumes of consumer appliance and electrical products companies, including Havells India Ltd. As a result, Havells India is expected to report a decline in profit and operating profit for the quarter.

Havells, one of India's largest wires and cables manufacturers, is expected to report a nearly 9% on-year jump in its March quarter revenues to over INR 71 billion, but the net profit is seen falling nearly 12% on year to INR 4.61 billion, according to the average of estimates from 12 brokerages. However, sequentially, the net profit is seen rising 33% and revenue is likely to increase more than 27%. Havells will detail its March quarter results on Wednesday. 

YES Securities (India) Ltd. has the highest net profit estimate at INR 5.4 billion and Motilal Oswal Financial Services Ltd. has the lowest at INR 3.77 billion. Prabhudas Lilladher Pvt. Ltd. has the highest revenue estimate at over INR 73 billion and Nuvama Wealth Management Ltd. has the lowest revenue estimate at nearly INR 69 billion. 

Brokerages said consumer demand for electrical products across most categories was subdued in the March quarter. Demand for cooling products like air conditioners, coolers, and fans was muted due to a high base, unseasonal rains in the north, and a delayed summer in the south. 

Demand momentum in the wires and cables segment also slowed during the quarter on account of inventory reduction by sales channels, HDFC Securities Ltd. said in a report. While growth for lighting products is likely to remain in low single digits due to price deflation, switchgear demand is expected to have been steady in the March quarter, the brokerage said. Other brokerages also see a similar macroeconomic situation in the March quarter, which is likely to have negatively impacted not just Havells, but industry leader Polycab India as well. 

Kotak Securities Ltd. estimates Havells' top line from the wires and cables segment, which usually comprises 40% of the company's total annual sales, to increase 15% on year during the latest quarter, primarily on account of price increases at the cost of shrinking volumes. Revenues from electrical appliances, which account for 20% of sales, is expected to increase 5% on year on account of a strong base and channel inventory of seasonal categories, while lighting sales are expected to rise 4% on year, Kotak Securities said. 

The Lloyd consumer durables division, which accounts for 12% of Havells' annual sales, is expected to decline 10% on year on account of a very high base. 

Some brokerages warned that the 7% price hikes undertaken by the consumer durables industry in the March quarter may not be sufficient to cover the overall increase in raw material costs, and another round of price hike may be necessary in the June quarter. Copper procurement costs – the key raw material for cooling appliances, wires and cables - were up over 4% on year and aluminium costs were up 3% in the March quarter, which led to cost pressures. 

Havells is expected to report an earnings before interest, tax, depreciation, and amortisation of INR 6.81 billion in the March quarter, according to the average of estimates from 11 brokerages. YES Securities' estimate for EBITDA is the highest at INR 7.76 billion and JM Financial's estimate of INR 5.7 billion is the lowest. 

Brokerages will keep an eye on price hike announcements by the company, movement in raw material costs and performance of the consumer durables division in the summer season, when they announce their March quarter earnings. 

At 1253 IST, shares of Havells traded flat at INR 1,280.30 on the National Stock Exchange. The shares are down nearly 12% since the company announced its December quarter earnings on Jan. 19. 

Of the 13 research reports on the company available with Informist, 11 have a ‘buy' recommendation on the stock at an average target price of INR 1,672 and two brokerages have a ‘hold' recommendation at an average target price of INR 1,508.

The following are the Jan-Mar earnings estimates for Havells India from 12 brokerages in descending order of the estimate of net profit in INR million:

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

Edited by Tanima Banerjee

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