Crompton Greaves Consumer Electricals (CROMPTON) Q2 25/26 earnings summary

Executive summary

• Recognized as the world's number one ceiling fan company by Euromonitor International, reinforcing global leadership and receiving multiple awards for sustainability and design.

• Q2 FY26 revenue remained broadly stable at ₹1,915.57 crore, despite prolonged monsoons impacting cooling products.

• Strong performance in Pumps, Small Domestic Appliances, and Butterfly segment offset weather-related headwinds.

• Solar business gained momentum with significant new rooftop and pump orders, positioning it as a major future revenue driver.

• Board approved unaudited financial results for the quarter and half-year ended September 30, 2025.

Financial highlights

• Q2 FY26 consolidated revenue grew 1% YoY to ₹1,915.57 crore; H1 FY26 revenue was ₹3,913.95 crore.

• Q2 consolidated EBITDA margin contracted to 8.3% from 10.7% YoY due to subdued sales and higher operating expenses.

• Q2 consolidated net profit fell 41% YoY to ₹75.42 crore, impacted by a ₹20.36 crore exceptional charge for Vadodara plant restructuring.

• Butterfly segment revenue grew 14% YoY, with EBITDA margin expanding to 9.5%.

• Lighting segment delivered 3.1% YoY revenue growth and 50% YoY EBIT growth, with EBIT margin expanding to 15.5%.

Outlook and guidance

• Solar business expected to become the second largest business within 1-2 years, targeting ₹2,000 crore revenue in 18-24 months.

• GST 2.0 and recent tax reforms anticipated to drive recovery in durables and boost consumption, especially in high-ticket items.

• Price increases of 1.4%-1.5% implemented in fans to address margin pressures, with further actions planned.

• Confident in restoring ECD margins to mid-teens as cost and mix initiatives take effect.

• No explicit forward-looking guidance provided, but restructuring and capital actions indicate focus on operational efficiency.