Havells India Limited Earnings Summary — Q1 FY2027
Havells India Reports Volume-Led Revenue Growth Amidst Seasonal Demand for Cooling Products
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 2.8% sequentially in Q1 FY2027.
- Revenue of ₹6,518 Cr is 19.5% higher year-on-year.
- Revenue has compounded at 8.4% annualised over the last 10 quarters.
- Net profit of ₹290 Cr is 16.5% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -17.4% annualised across the period.
- Operating margin stands at 7.2% in Q1 FY2027.
- Operating margin compressed by 230 bps year-on-year.
- Over the last two years operating margin has contracted by 271 bps.
- PBT margin is 6.0%.
- Expenses grew 22.5% against revenue growth of 19.5%.
- Operating profit of ₹466 Cr is 9.6% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 47/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 6,518 | 6,705 | 5,588 | 4,779 | 5,455 | 6,544 | 4,889 | 4,539 | 5,806 | 5,442 |
| Expenses | Accelerating | 6,052 | 5,976 | 5,072 | 4,341 | 4,940 | 5,787 | 4,462 | 4,164 | 5,234 | 4,807 |
| Operating Profit | Stable | 466 | 729 | 516 | 438 | 516 | 757 | 427 | 375 | 572 | 635 |
| Operating Margin | Softening | 7.2% | 10.9% | 9.2% | 9.2% | 9.4% | 11.6% | 8.7% | 8.3% | 9.9% | 11.7% |
| Other Income | Volatile | 54 | 310 | 9 | 91 | 69 | 69 | 64 | 93 | 77 | 76 |
| Interest | Softening | 7 | 10 | 9 | 9 | 9 | 15 | 9 | 10 | 9 | 18 |
| Depreciation | Stable | 121 | 112 | 109 | 106 | 106 | 110 | 104 | 95 | 92 | 93 |
| Profit Before Tax | Volatile | 392 | 918 | 408 | 415 | 470 | 701 | 377 | 363 | 549 | 599 |
| Tax | Volatile | 103 | 194 | 108 | 96 | 122 | 184 | 99 | 95 | 141 | 153 |
| Net Profit | Volatile | 290 | 723 | 301 | 319 | 348 | 518 | 278 | 268 | 408 | 447 |
| Net Margin | Stable | 4.5% | 10.8% | 5.4% | 6.7% | 6.4% | 7.9% | 5.7% | 5.9% | 7.0% | 8.2% |
Key Takeaways
- Revenue grew 19.5% YoY to ₹6,518 crore, driven by strong growth in Cables and Lloyd Consumer segments.
- Lloyd Consumer segment continues to operate at a loss, reporting a segment EBIT loss of ₹51 crore for the quarter compared to a ₹20 crore loss in the same period last year.
- The Cables segment remains the largest revenue contributor, growing 27% YoY to ₹2,456 crore with steady EBIT margins.
- A sharp increase in advertisement and sales promotion expenses (up 100% YoY to ₹286.5 crore) significantly impacted quarterly profitability.
- Profit After Tax faced a YoY decline of 16.6% due to higher raw material consumption and aggressive marketing spends during the peak summer season.
- The company restructured its reporting segments effective April 1, 2026, introducing 'Renewables' as a standalone segment encompassing Solar and EVSE businesses.
- Switchgear and Electrical Consumer Durables (ECD) segments saw moderate growth but faced margin compression compared to the previous quarter.
Management Guidance
Management commentary reflects a continued focus on market share gains through aggressive brand building, specifically in the Lloyd and ECD segments, while navigating volatile raw material costs.
Sentiment Shift
Deteriorating
While top-line growth remains robust, the significant jump in marketing expenses and continued losses in the Lloyd segment have led to a sharp contraction in bottom-line performance.
Outlook
The outlook remains focused on seasonal demand cycles for cooling products and the ramp-up of the newly formed Renewables segment. High-intensity competition in the consumer durable space suggests continued pressure on margins in the near term.
From the Annual Report (Key Quotes)
“During the quarter, the company has made the following allotment of equity shares... under Havells Employees Stock Purchase plans.”
“Effective April 1, 2026, the Company has reviewed and revised its reportable segments.”
“The figures of the March quarter are the balancing figures between audited figures in respect of the full financial year up to March 31, 2026 and the unaudited published year-to-date figures.”
Official Quarterly Documents
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This summary is AI-generated from Havells India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.