Crompton Greaves Consumer Electricals Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

Crompton delivered a resilient Q3 FY26, characterized by sequential margin recovery and strategic expansion into the residential wires market. The company successfully navigated the BEE 2.0 transition in fans while scaling its solar business to a ₹500 crore order book. Management is focused on premiumization and pricing actions to offset persistent commodity inflation.

Highlights

  • Consolidated revenue reached ₹1,898 crores, representing a 7% YoY growth.

  • EBITDA grew 18.5% QoQ with margins expanding to 10.3%.

  • Launched residential wires business targeting a ₹36,000-37,000 crore addressable market.

  • Solar rooftop business booked ₹18-19 crores in revenue with a total order book of ₹500 crores.

  • BLDC fan category grew 50%+ QoQ, with the company gaining 5%+ market share in the segment.

  • Butterfly Gandhimathi reported revenue of ₹245 crores (+3% YoY) with EBITDA margins expanding 100bps to 8.2%.

  • PBT prior to exceptional items stood at ₹156 crores with a margin of 8.2%.

  • Successfully transitioned to BEE 2.0 norms for ceiling fans effective January 1, 2026.

Concerns

  • Commodity Cost Inflation

Key financials

  1. Consolidated Revenue ₹1,898 Cr +7%YoY
  2. EBITDA Margin 10.3%
  3. PBT (Pre-Exceptional) ₹156 Cr
  4. Butterfly Revenue ₹245 Cr +3%YoY
  5. Butterfly Net Profit — +44%YoY

What they filed

Q1 FY27: revenue up 11.9%, net profit up 15.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,896 1,769 2,061 1,998 1,916 +1%1,898 +7%2,283 +11%2,235 +12%
EBITDA204 188 267 192 158 −23%195 +4%271 +1%224 +17%
Net profit128 112 172 124 75 −41%101 −10%-531 −409%143 +15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • ECD (Electric Consumer Durables)
    8% Revenue Growth
  • Lighting
    7% Revenue Growth
  • Butterfly
    8.2% EBITDA Margin₹245 Cr Revenue

Guidance & targets

Other

  • Residential Wires Market Availability Other · next 6 to 7 weeks · High confidence Select markets
    These products will become available to consumers in select markets in the next six to seven weeks.

    — Promeet Ghosh, MD & CEO

Margin

  • Price Hikes Margin · Q4 FY26 and Q1 FY27 · Medium confidence Two more rounds
    We are looking at two more rounds of price increase that would happen in Q4 and Q1.

    — Kaleeswaran Arunachalam, CFO

Revenue

  • Solar Rooftop Order Execution Revenue · next 9 to 12 months · High confidence ₹500 crores
    The expectation, is that this order book will be executed over approximately the next 9 to 12 months.

    — Promeet Ghosh, MD & CEO

Capex

  • Greenfield Expansion Capex · Near term · Medium confidence ₹3.5 billion
    That is progressing and I would venture that we would be in a position to give you more details in the near term.

    — Promeet Ghosh, MD & CEO

Risks & concerns

  • Commodity Cost Inflation

    high

    Management noted that commodity cost inflation persisted over the last quarter, requiring multiple rounds of price hikes.

    Management acknowledged

  • Working Capital in Government Orders

    medium

    Analysts questioned if the ₹500cr government solar order would stretch working capital; management claims payment schedules are reasonable.

    Analyst downplayed

  • Intense Competition in Fans

    medium

    Management mentioned coming away from a period of 'intense competition' and is using premiumization (BLDC) to recover margins.

    Management acknowledged

Areas of evasion (2)

  • Specific revenue and order book for solar pumps.
  • Specific contribution of the 'Idea First' series to Butterfly's growth.

Q&A highlights

2 direct
Profitability of Adjacencies (Wires & Cables) Direct
As far as Crompton is concerned, we entered an adjacent category of solar pumps, two and a half years ago... it is also very profitable. And in the last quarter alone... we have more than doubled our sales.

Addresses investor skepticism regarding the company's ability to generate profits in highly competitive new categories like wires.

Asked by Manjeet Buaria

Solar Rooftop Revenue Recognition Direct
We have started recognizing revenues. And we have booked about Rs.18- 19 crores in the solar business last quarter.

Confirms that the solar segment is already contributing to the top line and validates the execution of the order book.

Asked by Aditya Bhartia

BEE 2.0 Transition and Pricing Impact Partial
We think that should help us to largely offset coupled with the other cost initiators that we discussed.

Highlights the ongoing struggle to balance regulatory cost increases and commodity inflation with pricing power.

Asked by Keshav Lahoti

2 min read 5 chapters

Detailed narrative

Strategic Entry into Residential Wires

Crompton has officially launched its residential wires business, targeting a massive ₹36,000-37,000 crore market. The company plans to leverage its existing pan-India distribution and brand equity to achieve a leadership position in the near to medium term. Initially, the business will operate on an outsourced model to minimize CAPEX, with products becoming available in select markets within the next 6-7 weeks.

Solar Business Emerges as a Growth Engine

The solar segment is showing significant traction, with the rooftop business booking ₹18-19 crores in revenue during Q3. The total order book for solar rooftops has reached approximately ₹500 crores, which management expects to execute over the next 9-12 months. Furthermore, the solar pumps business has more than doubled its revenue YoY, positioning Crompton as a top three player in that segment.

BEE 2.0 Transition and Fan Leadership

The company reported a seamless transition to BEE 2.0 norms for ceiling fans, effective January 1, 2026. Crompton maintained its status as the world's number one ceiling fan brand by responsibly liquidating legacy inventory and focusing on R&D for new star-rated products. The BLDC fan category was a standout performer, growing over 50% QoQ and contributing to a 5% market share gain.

Butterfly Gandhimathi Turnaround

Butterfly Gandhimathi showed signs of a successful turnaround with a 44% YoY growth in net profit. Revenue grew 3% YoY to ₹245 crores, driven by premiumization in gas stoves and demand for cookers. EBITDA margins expanded by 100bps to 8.2%, aided by gross margin improvements and cost optimization initiatives like the 'Idea First' series.

Margin Recovery Amidst Inflation

Despite persistent commodity inflation, Crompton achieved a sequential EBITDA margin expansion to 10.3%. Management has taken a net price increase of 1-1.5% in January and plans two additional rounds of hikes in Q4 FY26 and Q1 FY27. The company is also utilizing its 'UNNATI' cost program and alternative raw material qualification to defray cost increases without compromising quality.

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