Havells India Limited (HAVELLS) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY26 results were approved with no material misstatements; overall performance was decent, but summer products like air conditioners, fans, and coolers saw revenue declines due to shorter summers and high channel inventory, impacting growth and margins.

• Cables maintained steady growth, driven by strong power cable demand; capacity expansion is on track with new land acquisition in Alwar.

• Strategic investment of ₹600 crores made in Goldi Solar Private Limited to accelerate renewable energy growth.

• Working capital levels rose, especially for cables and Lloyd, reducing cash balances and interest income; normalization expected by Q4.

• Recent GST reductions on select products (air conditioners, TVs, solar) are expected to boost consumer sentiment and demand.

Financial highlights

• Standalone Q2 FY26 revenue from operations: ₹4,766.63 crores; H1 FY26: ₹10,204.44 crores.

• Standalone Q2 FY26 net profit: ₹316.36 crores; H1 FY26: ₹667.57 crores.

• Consolidated Q2 FY26 revenue from operations: ₹4,779.33 crores; H1 FY26: ₹10,234.68 crores.

• Lloyd Consumer segment reported negative results in Q2 FY26, with a segment loss of ₹98.85 crores (standalone) and ₹105.97 crores (consolidated).

• EBITDA margins for the standalone business remain at 12–13%, with potential for 150–200 bps expansion if growth normalizes.

Outlook and guidance

• Channel inventories for summer products are expected to normalize by the end of Q3, with real improvement in contribution margins from Q4.

• Solar business is expected to see strong growth in H2, benefiting from the Goldi Solar investment and improved supply chain.

• Management is optimistic about demand recovery in H2, supported by GST changes and positive consumer sentiment.

• CapEx guidance: INR 1,450 crore for FY25-26 and INR 1,000 crore for FY26-27.