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Informist, Wednesday, Aug. 5, 2026

By Devanshu Singla

MUMBAI – Crompton Greaves Consumer Electricals Ltd. is expected to report a sharp growth in its net profit and revenues for the June quarter, driven by strong sales of the electrical consumer durables segment, a favourable summer season, and price hikes, according to brokerages tracking the company.

The electrical equipment company is expected to report a standalone net profit of INR 1.51 billion for the June quarter, according to the average of estimates from 10 brokerages. This will be up nearly 21% on year from INR 1.22 billion but down 16% on quarter. The highest estimate for the company's net profit is INR 1.85 billion from Nirmal Bang Equities Pvt. Ltd. and the lowest is INR 1.22 billion from HDFC Securities Ltd.

The company's consolidated net sales for the quarter are expected at INR 22.75 billion, up 25% on year from INR 19.98 billion and over 9% on quarter, according to the estimates. The highest estimate for the company's net sales is INR 23.36 billion from Nomura Equity Research and the lowest is around INR 21.58 billion from HDFC Securities.

The company's revenue from electrical consumer durables is expected to grow around 16% on year on the back of a better summer season for sales of fans, continued momentum in pumps, and strong growth in the small domestic appliances business, Kotak Securities said. However, this growth will be partly offset by weak consumer sentiment after the company raised prices.

The company's revenue from its solar rooftop business is expected to be between INR 300 million and INR 400 million. Kotak expects a 13% on-year growth in revenues from its subsidiary Butterfly Gandhimathi Appliances Ltd. and a 10% on year growth in the lighting business. "Butterfly appliances is expected to grow at strong double digit on back of improved demand for kitchen appliances like induction cooktops and Rice cookers," Yes Securities said.

Demand remained stable across most consumer durable categories in the June quarter, HDFC Securities said. Cooling products such as air conditioners, coolers, and fans delivered strong performance in the quarter, supported by a favourable consumer season and a low base from last year. Channel inventories across most product categories have also normalised, the brokerage added.

Crompton's earnings before interest, taxes, depreciation, and amortisation are estimated at INR 2.33 billion for the June quarter, up 31% from INR 1.78 billion in the year-ago quarter, according to the average of estimates from nine brokerages. Sequentially, EBITDA is likely to fall nearly 8%. The highest estimate for the company's EBITDA is INR 2.61 billion from Nirmal Bang and the lowest is INR 2.05 billion from HDFC Securities.  
 

Crompton's EBITDA margins are expected to contract on a quarterly basis due to higher commodity costs. The company's inability to completely pass on the increase in raw material prices will weigh on the margins, brokerages said.

"We expect ECD (electrical consumer durables) EBIT margin to contract by 110/325 bps (basis points) YoY/QoQ to 12.25% (only 60% of raw material inflation passed through), versus 115 bps YoY compression seen in 4Q," Kotak Securities said.

Wednesday, shares of Crompton Greaves ended over 1% higher at INR 266.10 apiece on the National Stock Exchange. The stock is down around 8% since the company reported its March quarter earnings on May 13. The company is schedule to detail its June quarter earnings on Aug. 6.
 
All the 15 brokerage reports on the company available with Informist have a "buy" recommendation on the stock. The average target price of the "buy" recommendations is INR 352, which is 32% higher than the closing price Wednesday.

Following are the Apr-Jun earnings estimates for Crompton Greaves Consumer Electricals from 10 brokerage firms in a descending order by estimate of net profit, in INR billion:

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Edited by Pankaj Aher

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