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Informist, Friday, Jul. 17, 2026

 

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--Havells Apr-Jun net profit INR 2.98 bln 
--Havells Apr-Jun revenue INR 65.10 bln 
--Analysts saw Havells Apr-Jun net profit INR 4.06 bln 
--Analysts saw Havells Apr-Jun revenue INR 65.29 bln 
--Havells Apr-Jun net profit INR 2.98 bln vs INR 3.52 bln year ago 
--Havells Apr-Jun revenue INR 65.10 bln vs INR 54.38 bln year ago 
--Havells Q1 raw material, component cost INR 40.2 bln vs INR 30.1 bln yr ago 
--Havells Apr-Jun cable ops sales INR 24.56 bln vs INR 19.33 bln year ago 
--Havells Apr-Jun Lloyd consumer sales INR 14.60 bln vs INR 12.62 bln yr ago 
--Havells Q1 electrical durables sales INR 11.13 bln vs INR 9.93 bln yr ago 
--Havells Apr-Jun switchgear sales INR 6.08 bln vs INR 6.30 bln year ago 
--Havells Q1 purchase of traded goods cost INR 9.6 bln vs INR 6.7 bln yr ago 
--Havells Apr-Jun EBITDA margin 7.3% vs 9.6% year ago 
--Havells: Q1 demand resilient despite inflationary pressures, West Asia war 
--Havells: Hiked prices across categories to offset raw material inflation 
--Havells: Rise in advt, promotional costs compressed profitability in Q1 
--Havells: Expect INR 14 bln capex for FY27 
 

 

By Avishek Rakshit

 

KOLKATA – Havells India Ltd. Friday reported an over 15?cline in its net profit for the June quarter at INR 2.98 billion, disappointing the Street which had estimated the company's net profit at INR 4.06 billion. The fall in the company's profit is despite the company registering decent revenue growth.

 

Havells' revenue for the June quarter rose nearly 20% on year to a little over INR 65 billion, nearly in line with the Street's estimates. The revenue growth was the highest in four quarters but the fall in profit was the sharpest in the past 15 quarters. Within this timeframe, Havells posted a decline in its profit four times.

 

In an investor presentation submitted to the bourses, Havells said its revenue growth in the June quarter was on account of resilient demand conditions despite inflationary pressures and uncertainties caused by the West Asia war. 

 

However, the late onset of the summer led to lower demand for cooling products. The company took calibrated and staggered prices hikes across product categories to offset raw material inflation and stepped up brand-building efforts significantly, which led to higher spends on advertising and promotions. Effectively, the outgo on media and promotional spends led to a decline in the company's profitability despite strong revenue growth. The cables and wires major reported an earnings before interest, tax, depreciation, and amortisation margin of 7.3% for the June quarter, as compared to 9.6% in the year-ago quarter. 

 

Higher raw material prices pulled up the company's raw material costs nearly 34% on year to over INR 40 billion. However, price hikes and better demand conditions led its revenue from cable sales to grow over 27% on year to nearly INR 24.56 billion. Switchgear sales, however, declined over 3% on year to a little over INR 6 billion. 

 

Although the summer season arrived late, Havells' sales in the Lloyd consumer durables division increased nearly 16% on year to nearly INR 14.60 billion, led by higher air conditioner sales and electrical durables, under which it sells summer products like fans, which registered over 12% on year growth at INR 11 billion. 

 

The company's cost of purchase of traded goods in the June quarter increased over 43% on year to INR 9.6 billion and inventory costs declined significantly. Advertising and promotions spends doubled on year to nearly INR 3 billion in the June quarter. 

 

In the investor presentation, Havells reasoned that its switchgear exports were disrupted by the war in West Asia although domestic demand remained stable, which explains the 3% sales decline Havells registered in the June quarter in this business division. 

 

The company's cables business maintained its growth momentum and sales of lighting products saw a pick-up as prices stabilised in the June quarter, Havells said. Even though Havells raised prices of electrical consumer durable products such as air conditioners and fans, demand for these products was stable and consumers absorbed the price hikes, the company said. 

 

Havells said that the margin contribution across its product categories held well despite a raw material inflationary environment, but the earnings before interest and tax margins were negatively impacted in the June quarter on account of higher spends on advertising and promotions. 

 

With the price hikes taken by the company and normalising spends on advertising, Havells said its outlook on margins remains positive. The company has lined up capital investment of INR 14 billion for the current financial year primarily towards capacity addition in cables and investment in a new research and development centre.

 

Shares of Havells fell 1.7% to INR 1,150.40 on the National Stock Exchange soon after the company announced its June quarter results. However, they later regained momentum and, at 1514 IST, were up 1.7% at INR 1,190.90 on the NSE.  End

 

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

 

Edited by Avishek Dutta

 

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