Havells India Limited (HAVELLS) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY26 financial results were approved with no material misstatements, showing decent overall performance despite declines in summer products due to shorter summers and high inventory.

• Cables maintained steady growth, driven by strong power cable demand and ongoing capacity expansion, including new land acquisition in Alwar.

• Strategic ₹600 crore investment in Goldi Solar Private Limited to accelerate renewable energy growth and strengthen the solar supply chain.

• Working capital levels remain elevated, especially for cables and Lloyd, reducing cash balances and interest income.

• GST reductions on select categories (air conditioners, TVs, solar) are expected to uplift consumer sentiment.

Financial highlights

• Standalone Q2 FY26 revenue: ₹4,766.63 crores; net profit: ₹316.36 crores; consolidated Q2 revenue: ₹4,779.33 crores; net profit attributable to owners: ₹319.00 crores.

• Cables and wires segment achieved 15%-16% contribution margin, benefiting from rising raw material prices and inventory gains.

• Switchgear margins are stable in the 37%-40% range, depending on product mix.

• EBITDA margins for standalone business remain at 12%-13%, with potential for 150-200 bps expansion if growth normalizes.

• Lloyd Consumer segment reported a Q2 FY26 loss of ₹98.85 crores (standalone) and ₹105.97 crores (consolidated).

Outlook and guidance

• Channel inventory for summer products expected to normalize by end of Q3, with real margin improvement in Q4.

• Solar business anticipated to see strong growth in H2, leveraging supply chain benefits from Goldi Solar investment.

• Positive momentum observed in early Q3, with rural growth returning and festive demand picking up.

• CapEx guidance: INR 1,450 crore for FY25-26 and INR 1,000 crore for FY26-27.