Havells India Limited (HAVELLS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 was challenging due to a weak summer and subdued consumer demand, especially impacting cooling products, while cables and wires saw robust growth driven by infrastructure and industrial demand.

• Unaudited standalone and consolidated financial results for Q1 ended June 30, 2025, were approved and limited reviewed by auditors, with no material misstatements noted.

• Management views the quarter's challenges as transitory and expects revenue growth and margin improvement in upcoming quarters.

• Continued investments in capacity expansion and renewables, including a significant INR 600 crore investment for a 9.09% stake in Goldi Solar Private Limited, are aimed at future growth.

Financial highlights

• Standalone revenue from operations for Q1 FY26 was ₹5,437.81 crore, down from ₹5,506.87 crore in Q4 FY25 and ₹5,798.11 crore in Q1 FY25.

• Cables and wires segment achieved 20-21% volume growth and 27% value growth year-over-year, with similar growth in both cables and wires.

• Consolidated profit for the period was ₹347.53 crore, down from ₹407.51 crore in Q1 FY25.

• Gross margin improved by 160 basis points, attributed to product mix and operational efficiencies.

• Lighting segment margins remain industry-leading, supported by premium and solution-oriented products.

Outlook and guidance

• Management expects inventory normalization and demand recovery in cooling products over the next few months.

• Cables and wires capacity will double by FY27, supporting medium-term growth.

• Solar business revenue is expected to grow from INR 500 crore last year to INR 1,000-1,500 crore in the next couple of years.

• Continued focus on operational efficiency, premiumization, and expanding presence in the solar ecosystem and renewable sector through strategic investments.