Crompton Greaves Consumer Electricals (CROMPTON) Investor Day 25/26 summary

Strategic transformation and future growth

• Transitioned from a foundation phase (FY17-22, 6% CAGR) to a transformation phase (FY23-26, 11% CAGR), now targeting a future-proofing phase (FY27-31) with ~13-14% CAGR and 2X revenue by FY31.

• Crompton 2.0, launched in 2023, focuses on accelerated growth, premiumization, and entry into 2-3 new business segments, leveraging innovation, digitalization, and operational excellence.

• Business ambitions include expanding TAM from ₹80,000 Cr to ₹160,000 Cr, doubling revenue, and increasing the share of smart & connected products to ~15% by FY31.

• Premiumization and innovation are central, with a tiered portfolio strategy and new brand architecture to drive growth and consumer aspiration.

• Sustainability is embedded, with targets for 50% reduction in Scope 1 & 2 GHG emissions and 60% emission intensity cut by 2035.

Financial performance and capital allocation

• Revenue compounded at ~11% since FY22, reaching ₹8,096 Cr in FY26, with all business units and alternate channels contributing.

• Premiumization lifted revenue per unit by 9%, with premium mix rising from 20% to 27% of total revenue.

• Disciplined capital allocation: >85% EBITDA conversion to operating cash flow, negative working capital (~4% of sales), and steady capex (~₹90 Cr/year).

• Dividend payout ratio at ~40% for FY26, with improving ROE (15% in FY26).

• Growth and transformation initiatives self-funded, with no capital raise required over the last five years.

Business unit highlights and innovation

• Fans: Market share up 60 bps (FY23-26), targeting 100 bps gain by FY31, with 30% premium sales and 20% NPD contribution.

• Large domestic appliances: Became #1 in storage water heaters, air cooler market share up 160 bps, aiming for 29% premium mix by FY31.

• Pumps: 45% topline growth in 3 years, 180 bps market share gain in residential, targeting 250 bps gain and 35% premium mix by FY31.

• Kitchen appliances: Doubled revenue in 3 years, Butterfly brand turnaround with premium products at 45% of revenue and EBITDA margin up to 8.5%.

• Lighting: EBITDA up from ₹105 Cr to ₹156 Cr (FY23-26), ceiling and outdoor mix up to 45%, targeting 325 bps market share gain by FY31.