Havells India Limited (HAVELLS) Q1 26/27 earnings summary

Executive summary

• Strong revenue growth in Q1, with consolidated revenue reaching ₹6,518.19 crore, supported by resilient demand despite inflation and geopolitical uncertainties in West Asia.

• Standalone revenue from operations was ₹6,509.97 crore, up from ₹5,437.81 crore year-over-year.

• Renewables business reported robust revenue growth and is now disclosed as a separate segment.

• Significant increase in advertising and promotion (A&P) spend, more than doubling year-over-year, impacting quarterly profitability but expected to normalize.

• Standalone and consolidated net profit declined to ₹298.43 crore and ₹289.71 crore, respectively, due to margin pressures.

Financial highlights

• Calibrated and staggered price hikes across categories to offset raw material inflation.

• Contribution margin remained stable at around 18.3% despite commodity price pressures.

• A&P spend for the quarter reached INR 286 crore, with full-year guidance around INR 700–800 crore, maintaining a long-term average of 2.7% of sales.

• Standalone EBITDA for Q1 FY27 was ₹640.83 crore, compared to ₹589.97 crore in Q1 FY26.

• Gross margin pressure evident as cost of raw materials and traded goods increased year-over-year.

Outlook and guidance

• Management expects demand environment and margins to improve in coming quarters.

• Renewables margins anticipated to improve as product mix shifts toward higher-margin consumer offerings.

• Segment reclassification effective April 1, 2026, with new focus on Renewables and reallocation of Water Purifier and Personal Grooming businesses.

• No specific full-year revenue or margin guidance provided, but positive growth momentum expected.

• A&P spend to normalize as a percentage of revenue over the year.