Havells India Limited (HAVELLS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 was challenging due to an unexpectedly weak summer and subdued consumer demand, especially impacting cooling products, while cables and wires saw robust growth driven by infrastructure and industrial demand.

• Unaudited standalone and consolidated financial results for Q1 ended June 30, 2025, were approved and limited reviewed by auditors, with no material misstatements noted.

• Management views the quarter's challenges as transitory and expects revenue growth and margin improvement in upcoming quarters.

• Continued investments in capacity expansion and renewables, including a significant investment in Goldi Solar, are aimed at future growth.

• Strategic investment of ₹600 crore for a 9.09% stake in Goldi Solar Private Limited to accelerate growth in the renewable sector.

Financial highlights

• Standalone revenue from operations for Q1 FY26 was ₹5,437.81 crore, down from ₹5,506.87 crore in Q4 FY25 and ₹5,798.11 crore in Q1 FY25.

• Consolidated revenue from operations for Q1 FY26 was ₹5,455.35 crore, compared to ₹5,806.21 crore in Q1 FY25.

• Cables and wires segment delivered 20-21% volume growth and 27% value growth year-over-year, with both cables and wires contributing similarly.

• Lloyd's profitability and margins improved significantly despite flat revenues, supported by operational efficiencies and ongoing brand investments.

• Gross margin improved by 160 basis points, attributed to product mix and operational efficiencies.

Outlook and guidance

• Management expects inventory normalization and demand recovery in cooling products over the next few months.

• Renewables and solar business are expected to see sizable growth, with solar revenues targeted to cross INR 1,000-1,500 crore in the next couple of years.

• Lighting segment margins are expected to remain high as price declines plateau and premium, solution-oriented products drive growth.

• Continued focus on expanding presence in the solar ecosystem and renewable sector through strategic investments.