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    Havells India Limited

    HAVELLS
    Consumer Durables·19 Jan 2026
    Management Summary

    Havells India delivered a healthy Q3 FY26 performance with 14% Y-o-Y revenue growth and 21% Y-o-Y EBITDA growth, primarily driven by strong cables business and volume-led growth in ECD winter products. However, the quarter included an exceptional charge of INR 45 crores, and the company navigates industry headwinds like commodity inflation and intense competition in FMEG. Management remains optimistic about gradual demand recovery and solar segment potential.

    Highlights

    5

    • Revenue grew by 14% Y-o-Y in Q3 FY26, driven by volume expansion and commodity price inflation.

    • EBITDA was up 21% Y-o-Y in Q3 FY26, demonstrating operating leverage from disciplined spends.

    • Cables business achieved healthy double-digit volume growth, exceeding 20%.

    • ECD segment saw volume-driven growth, particularly in winter products like OFR and water heaters.

    • Solar segment has a 'very positive outlook' for both revenue growth and margin expansion in the coming times.

    Concerns

    5

    • An exceptional item impact of INR 45 crores was recorded due to additional provisioning for new labour codes.

    • Industry faces headwinds from commodity inflation, BEE changes, and e-waste regulations.

    • Cooling products experienced a 'challenging environment' in recent quarters, though channel inventory is normalizing.

    • Cables & Wires segment saw a 200 basis points QoQ decline in contribution margin.

    • FMEG segment is characterized by 'hypercompetitiveness' and 'brand pull dilution', with category leaders struggling to maintain pricing power.

    Key financials

    Single quarter

    03 metrics
    1. 01Revenue Growth14.0%+14.0%YoY
    2. 02EBITDA Growth21%+21%YoY
    3. 03Exceptional Item Impact₹45 Cr

    Segment breakdown

    Cables & Wires
    20% Volume Growth200 bps Contribution Margin Decline65% Wires Capacity Utilization90% Cables Capacity Utilization
    Electrical Consumer Durables (ECD)
    Volume-driven text Growth Driver
    Other (Solar)
    Modules text Growth DriverEarly double digit to high single digit text Margin Profile
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹1,000 crores

    M&A

    Goldi Solar

    acquisition · integrated · Consideration ₹NaN (undisclosed)

    Guidance & targets

    1
    CategoryTargetPriority
    Capex
    Capex for next fiscal year
    INR 1,000 crores
    		Medium

    Lloyd inventory normalization

    by March 2026
    CurrentStill a little higher
    TargetNormalized by March '26

    Why it matters

    Crucial for clearing old stock and enabling sales of new BEE norm products for the upcoming season.

    So inventory basically normalizes by March '26, right? That's what we should build for Lloyd, right?

    How to verify

    key_financials.segment_breakdown[name='Lloyd'].metrics[label='Inventory Level']

    Risks & concerns

    5
    RiskSeverity

    Commodity Price Inflation

    Industry faces headwinds from cost increases due to commodity inflation (e.g., copper), impacting margins and requiring calibrated price hikes. — Management acknowledged

    medium

    Channel Inventory Build-up and Normalization

    Stock build-up in the channel, particularly for wires and old BEE norm products, could lead to channel normalization impacting volumes for some time. — Management acknowledged

    medium

    Competitive Intensity in FMEG

    The FMEG segment is characterized by hypercompetitiveness, brand pull dilution, and struggles for pricing power, with unorganized and regional players gaining ground. — Both acknowledged

    high

    Challenging Environment for Cooling Products

    Cooling products have faced a challenging environment in recent quarters, impacting demand and sales. — Management acknowledged

    medium

    Export Demand & Tariffs

    Export efforts, particularly to the U.S., have been impacted by tariffs and reduced demand, affecting cable business. — Management acknowledged

    medium

    Q&A highlights

    8

    “So volume growth has been a good healthy double digit, over 20%. So -- but there has been a sharp increase in raw material prices, as you mentioned, which actually has given a sharp increase in revenue growth for both cables and wires. As far as you're right that Havells is more wire heavy, and there has been a decent amount of stock build-up at the channel level.”

    Addresses key drivers of growth in a core segment, potential inventory risks, and strategic response to raw material volatility.

    asked by Natasha Jain

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Overview

    Havells India reported a healthy overall performance in Q3 FY26, with revenue growing by 14% year-on-year and EBITDA increasing by 21% year-on-year. This growth was primarily driven by accelerated performance in the cables business and operating leverage from disciplined spending. However, the company recorded an exceptional item📎 impact of INR 45 crores due to additional provisioning related to new labor codes.

    02

    Segmental Performance and Outlook

    The cables business demonstrated strong momentum with volume growth exceeding 20%, contributing significantly to revenue. The Electrical Consumer Durables (ECD) segment saw volume-driven growth, particularly in winter products like OFR and water heaters, despite some margin pressure. The 'Other' segment, predominantly solar, is experiencing healthy growth, especially in modules, with a positive outlook for both revenue and margin expansion, targeting early double-digit to high single-digit margins.

    03

    Inventory Management and Pricing Strategy

    The company noted a decent stock build-up at the channel level for wires and old BEE norm products, which is expected to normalize📎 by March 2026 for Lloyd and within the next couple of quarters for cables. Havells is implementing calibrated price hikes, with an estimated 5% to 10% increase for Lloyd products this quarter, aiming to offset commodity inflation while hoping that GST reductions will mitigate the impact on end-consumer pricing.

    04

    Capital Expenditure Plans

    Havells has incurred approximately INR 1,200 crores in capital expenditure over the past nine months. For the upcoming fiscal year (FY27), the company projects a capex in the range of INR 1,000 crores. This investment will primarily focus on continued expansion in the cables and wires segments and the development of a new R&D center, with the Lloyd segment's capex largely completed this year.

    05

    Market Dynamics and Competition

    The company acknowledges industry headwinds🌐 such as commodity inflation, BEE changes, and e-waste regulations. The FMEG segment faces intense competition, leading to challenges in maintaining brand pull and pricing power, with unorganized and regional players gaining market share. Despite these challenges, Havells remains optimistic about a gradual demand recovery and is focused on operational efficiency and strategic investments.

    06

    Export Strategy and Goldi Solar Investment

    Havells views exports, particularly for cables, as a significant opportunity to hedge against domestic demand fluctuations, despite current impacts from U.S. tariffs. The company's strategic investment of INR 600 crores in Goldi Solar aims to ensure a reliable supply of modules and leverage a broader ecosystem play in the solar segment, supporting its growth ambitions in renewables.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.