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Informist, Friday, Jul. 17, 2026

 

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--Havells: Expect international sales to rebound in Q2 
--CONTEXT: Comments by Havells management in post-earnings analyst concall 
--Havells: Value growth higher than volume rise for air conditioners in Q1 
--Havells: Price hikes taken so far only to compensate for cost increase 
--Havells: Expect renewables segment to expand amid larger domestic push 
--Havells: Hope future demand will be resilient despite price hikes 
--Havells: May decrease or increase prices further depending on raw material costs 
--Havells: Ad spends on Lloyd brand to remain elevated for coming quarters 
--Havells: Ad spends targeted on positioning Lloyd as premium brand 

 

By Avishek Rakshit & Shakshi Jain

 

KOLKATA/NEW DELHI – Havells India Ltd., which recently consolidated its renewables business as a separate strategic business unit under the company, is looking to roll out products adjacent to its current brand and sales channels. These products include electric vehicle chargers, solar pumps, battery energy storage, and other products for home and industrial applications. The company hopes such products will drive growth from this new line of business.

 

"Our focus will be into various categories of renewables which are adjacent to our brand and distribution. So, we are looking at... more residential homes, commercial and industrial establishments," Chairman and Managing Director Anil Rai Gupta told sector analysts in a post-earnings call Friday. "We are also looking at more strategic areas for the future, battery energy storage solutions, EV chargers. So, these are the kind of categories that we are getting into where we can utilise and leverage our brand and channels."

 

Gupta said renewable energy solutions and products are growing well in India and Havells wants to capitalise on the current demand momentum for such products. Therefore, the company decided to carve out renewable products as a new business segment. "We are very positive on this, and we expect it to become a larger segment," he said. "That's the reason why we have also carved out renewables so that it can be tracked both by the company as well as our investors on how we are doing this."

 

Havells, which saw its switchgear exports take a hit in the June quarter on account of the war in West Asia, expects exports to rebound from the September quarter.

 

In the June quarter, Havells, in tune with its peers, raised prices of air conditioners and other products to stave off raw material inflation which sprang largely from the West Asia war. Despite price increases, where Havells passed on the increased raw material costs to consumers, the company saw demand to be largely stable and expects consumer demand to remain resilient in the coming quarters as well.

 

Price hikes and largely stable demand conditions led Havells to report higher value growth as compared to volume growth in its Lloyd brand of consumer durables. Sales from the Lloyd division were primarily summer products such as air conditioners in the June quarter. However, the company may further increase or decrease prices depending on the movement in cost of raw materials. 

 

"Any improvement thereon in terms of raw materials or the world situation, definitely it will be either further passed on or reduced. But as of now, we believe that we have been successfully able to pass on the price hike," Gupta said. 

 

The top company official said Havells is working on positioning Lloyd as a premium consumer durables brand and hence its advertising and marketing spends to promote and correctly position the brand will remain high in the coming quarters.

 

"Lloyd's spends on A&P (advertising and promotions) will remain elevated for the next couple of years because there is a dual requirement of premiumising the brand and the product categories," Gupta said. "The kind of quality and the features that we give in our products need to be communicated to the consumers for a longer period of time."

 

In the June quarter, Havells doubled its expenses on advertising and promotions to nearly INR 3 billion, which hit its profitability despite 20% growth in the top line. Its earnings before interest, tax, depreciation, and amortisation margin fell to 7.3% in the June quarter, as against 9.6% in the year-ago quarter. The net profit declined 15% on year to nearly INR 3 billion. Friday, its shares closed at INR 1,187.30 on the National Stock Exchange, up 1.4% from Thursday.  End

 

Edited by Himanshi Gupta

 

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