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Informist, Wednesday, Apr. 22, 2026

--Hope to normalise AC inventory in channels by April-end
--Hoping to see better volume growth in Q1 FY27
--Looking at expanding solar products business
--Most of planned capex to go into wires, cables capacity till FY28
--Trying to be more efficient towards market share

By Avishek Rakshit & Astha Oriel 

KOLKATA/NEW DELHI– Havells India Ltd. Wednesday said it hopes the air conditioner inventory in its sales channels will normalise by the end of April, as this year's summer season has started late. "Hopefully by the end of this month, there will be normalised inventories at the channel level as well," Managing Director and Chief Executive Officer Anil Rai Gupta said at a post-earnings call with analysts. 

Gupta said AC sales in the first half of April were slow as the summer got delayed due to unseasonal rains. However, the mercury has started soaring in southern and western India, and the hot summer is expected to spread to northern India as well. Demand for products such as ACs, coolers, and fans goes up during summers and the higher the temperature, the higher is the demand for such products. 

In line with its peers and competitors, Havells has also increased AC prices under its Lloyd brand during Jan-Mar due to changes in energy-efficiency norms in the country. As a result, under tepid demand and price hikes, consumer demand for ACs fell to a large extent and revived only in April after initial signs of an approaching summer were felt. 

For Havells, poor demand conditions and price hikes resulted in poor sales and its inventory with its sales channel partners increased to 71 days during the March quarter as compared to 67 days a year ago. Inventory backlogs with sales partners typically limit a manufacturer's ability to push new products into its sales channels, as unsold inventory must be cleared before new products can be introduced. 

"The summer has started off on a good note. But the demand is yet to be seen. And our focus will be to continue to strive towards getting more efficiency. We have also continued to invest heavily in our brand-building activities," Gupta said. 

While Havells, like other industry players, is expected to increase prices of ACs further in the coming days to make up for cost pressures, Gupta is prioritising market share gains and register decent volume growth in the days ahead. Once the summer season kicks in fully with soaring temperatures, several companies resort to discounting to increase sales volume and gain market share. However, cost pressures may lead companies to restrict the temptation to resort to discounting and maintain pricing discipline. 

SUNRISE SOLAR

Calling the solar product portfolio a "sunrise" sector for Havells, Gupta said the company plans to expand its portfolio in this segment in the current financial year. "In the coming year also (2026-27 (Apr-Mar)), we do feel that there is enough opportunity in the solar segment to continue to grow. We will also be expanding our product ranges in the entire business space in the coming time," Gupta said.

Havells introduced solar products in 2017 and has a portfolio which cover both on-grid and off-grid products. On-grid solar solutions are designed to work in synchronisation with the main power utility grid. It allows the consumer to generate solar electricity during the day and draw power from the grid when needed, creating a seamless, cost-effective energy experience. 

Off-grid products are designed to deliver reliable, independent power, especially in remote areas with limited or no access to the electricity grid. These systems store energy in batteries, allowing an uninterrupted supply even during power outages or at night. Havells has a portfolio which covers both industrial and residential solar projects. 

Wires & Cables

Havells will be investing the bulk of its capital expenditure on the wires and cables division in the current and next financial year, Gupta said. "I think by 2027-28, major capex would go into cables and wires, which is already planned out. The rest (of the planned capex) is a big investment in a new R&D (research and development) centre, and that will happen over the next 2-2.5 years," Gupta said. 

Havells reported a net profit of INR 7.34 billion in the March quarter, up around 41% on year. Its revenue from operations rose 2% on year to INR 66.88 billion. 

Wednesday, shares of Havells closed 1.5% higher at INR 1,348.70 on the National Stock Exchange. End

Edited by Saji George Titus

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