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Informist, Thursday, Aug. 6, 2026

 

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--CONTEXT: Crompton Greaves raised prices of some products in recent months 
--Crompton Greaves: Don't see price increase necessary in coming months 
--Crompton Greaves:Plan INR 3.5 bln capex in new plant inclusive of warehouse 
--Crompton Greaves: Expect to execute notable part of solar order book in H1 
--Crompton Greaves: Ad spends as percentage of sales FY27 to be same as FY26 
--CONTEXT: Comments from Crompton Greaves mgmt in post-earnings analyst call 
--Crompton Greaves: Look to maintain spends on advertising going ahead 

 

By Diksha Tripathy and Avishek Rakshit

 

MUMBAI – Crompton Greaves Consumer Electricals Ltd. does not see the need for any sharp price increases at present, with the company saying the price hikes it has already taken have largely settled into the market and cost pressures have moderated, the management of the company said in a post-earnings conference call with analysts Thursday. The officials also said the company has adopted a disciplined approach towards pricing by balancing internal cost-saving measures with calibrated price increases.

"The price, the approach that we have is both working inside as well as working outside, right? So, every price increase that we have in commodity, we work on both sides. As of now, you know, do we see a significant state of pricing increases being necessary? The answer is no," a senior official said.

The management attributed its view partly to the company being among the first in the industry to implement price hikes. It added that the combination of earlier price increases, cost optimisation initiatives and operating leverage has reduced the need for further aggressive pricing action.

"At least today, I have not seen a sharp set of price increases that are still necessary for us because of the combination of the two, or actually three, price increases, costs measures, as well as our operating leverage," the official said.

The company said it has remained disciplined in passing on higher costs to consumers, even as many competitors have not followed a similar strategy. "We have been quite disciplined in passing on pricing advice. Having said that, we have not seen most of our competitors, or a large bulk of our competitors, frankly follow through in the same manner. Perhaps they were benefiting from significant low-cost inventory, but that will wear off," the official said.

Reiterating its pricing philosophy, the management said it would continue to pass on higher costs whenever required while maintaining focus on profitability. "We have always said unit economics is important. If commodity costs increase and, net of savings, there is a pass-on that needs to be done, we'll be disciplined to make that happen. That's not going to be left to subsidise," the official said.

The company added that higher revenues are also helping improve profitability through operating leverage. "This quarter also, you have already seen 30% expansion in EBITDA margin," the management said. On supply challenges during the quarter, the company clarified that the disruptions were not limited to pricing but also involved shortages of commodities and input materials across multiple categories.

"We had some supply disruptions in other areas as well. Because if it is only pricing disruptions, then that was a different story. There was a clear lack of visibility on supply of commodities and various input materials as well," the senior official said.

Apart from fans, the company also faced disruptions in its lighting business, where forward contracts in the business-to-business segment limited its ability to immediately offset sharp increases in input costs through pricing. The management, however, said the company worked through these issues during the quarter and conditions had largely normalised by the end of June. 

 

The company plans to invest around INR 3.5 billion to expand its in-house manufacturing capabilities by setting up a new facility that will also house a large warehousing unit. The company said the investment is aimed at strengthening its manufacturing footprint and improving operational efficiencies. However, the management clarified that the new facility does not signal an entry into the wires manufacturing business, adding that the company has no plans to manufacture wires.

 

Separately, the company said it expects to execute a significant portion of its solar order book during the first half of the current financial year, indicating healthy progress in its solar business pipeline.

 

On marketing spends, the management said advertising expenditure as a percentage of sales in FY27 is expected to remain broadly in line with FY26 levels. The company added that it intends to maintain its focus on brand-building and will continue investing in advertising going forward, without indicating any material change in its spending strategy.

 

The comments were made during the company's post-results interaction with analysts after it announced its quarterly earnings. The management said the planned capacity expansion, along with continued investment in brand building and execution of the solar order pipeline, reflects its focus on supporting future growth while maintaining operational discipline.

 

The company reported its June quarter earnings after market hours Thursday. Shares of Crompton Greaves closed nearly 1.5% higher at INR 270 apiece on the National Stock Exchange. For the June quarter, the company posted a consolidated net profit of INR 1.40 billion on revenue of INR 22.35 billion.  End

 

Edited by Deepshikha Bhardwaj

 

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