Havells India

Havells India reported a modest overall performance for Q4 FY26, primarily due to a milder start to the season impacting channel stocking for cooling products. While momentum in industrial and infrastructure-linked categories remained strong, consumer categories experienced cautious trade sentiment, driven by higher costs from recent global disruption^🌐s. The company stepped up advertising investments to enhance brand visibility while maintaining limited growth in overall spends.

The Cables and Wires segment achieved 6% volume growth and 14% value growth in Q4 FY26, implying an 8% blended price hike. The industrial cable segment grew significantly faster than the domestic wire segment. Domestic wires saw slight degrowth, attributed to destocking in the first half of Q4 and a high base from Q4 FY25, which saw a major copper price increase leading to higher channel stocking.

Havells made a strategic investment of ₹600 crores in Goldi Solar during the year, which resulted in a fair valuation gain of ₹283 crores reported under 'other income' for the quarter. This investment aims to leverage Goldi's solar module manufacturing capabilities to expand Havells' solar portfolio. Additionally, the company invested in a new refrigerator plant for Lloyd at Ghiloth, which was commissioned during the quarter, alongside the launch of a refreshed product portfolio.

Profitability margins held well across most segments, with the exception of Lloyd, which was impacted by lower revenues. The company is actively navigating cost pressures linked to recent developments in West Asia, which have led to increased raw material prices. Calibrated price actions have been initiated across various categories, with price increases ranging from 5% to 20% (8-15% for ACs), as the company strives to pass on costs while balancing market share retention.

The delayed onset of the summer season initially impacted demand for cooling products, leading to some channel inventory. However, management noted signs of pickup in demand from the south and west, now extending to the north, with expectations of normalized channel inventories by the end of April 2026. Despite this, the company remains cautious, closely tracking inflation trends and their impact on broader consumer sentiments, as high price escalations could affect offtake.

For FY26, approximately ₹800 crores in capex is allocated to cables and wires, with significant investment also planned for a new R&D center over the next two to two and a half years. No major new capex is planned for the Lloyd segment. Havells continues its long-term strategy of investing in innovation, brand building, and distribution reach, aiming for revenue growth to outpace expense growth (excluding advertising and promotions) to achieve operating leverage.

Trade receivables saw a notable reduction from ₹1,254 crores to ₹782 crores, leading to an improvement in debtor days from 20-21 to 13. Management clarified that these fluctuations are normal due to channel financing and mix, and do not represent a structural change in payment terms or billing practices, indicating efficient working capital management.