Havells India Reports Q1 FY27 Results with Significant Revenue Growth Amidst Elevated Marketing Spend
Havells India Limited has reported its unaudited financial results for the first quarter ended June 30, 2026. The company recorded a significant rise in net revenue, driven by resilient demand despite inflationary pressures and geopolitical uncertainties in the West Asia region.During the quarter, Havells implemented calibrated and staggered price hikes across various categories to mitigate the impact of raw material inflation. However, the company also saw a doubling of Advertising and Sales Promotion (A&P) expenses as it frontloaded brand-building efforts, particularly through media investments. This strategic push led to a compression in overall profitability for the period.
While the cooling products segment experienced a decent summer, the company noted that a delayed onset restricted the full benefit of demand. The report highlights strong growth in the Renewables segment, which saw a substantial year-on-year increase as the company captures opportunities in the energy transition market.
Financial Performance Summary
The following table outlines the key financial metrics for Q1 FY27 compared to the same period last year:| Metric | Q1 FY27 | Q1 FY26 | YoY (%) |
|---|---|---|---|
| Net Revenue (NR) | Rs 6,510 crores | Rs 5,438 crores | 19.7% |
| EBITDA | Rs 474 crores | Rs 520 crores | (8.8)% |
| PAT | Rs 298 crores | Rs 352 crores | (15.3)% |
| Cash & Cash Equivalent | Rs 1,497 crores | Rs 1,497 crores | - |
Segmental Analysis
Havells has reorganized its business segments to better reflect the growth of emerging businesses. The 'Renewables' segment now includes Solar, Battery Energy Storage (BESS), Solar Pumps, and EV Chargers. The Electrical Consumer Durables (ECD) segment now includes Water Purifiers and Personal Grooming.The revenue distribution across segments is as follows:
| Segment | Q1 FY27 Revenue (Rs crores) | Q1 FY26 Revenue (Rs crores) | YoY (%) |
|---|---|---|---|
| Switchgears | 608 | 630 | (3.5)% |
| Cables | 2,456 | 1,933 | 27.0% |
| Lighting & Fixtures | 390 | 374 | 4.5% |
| Electrical Cons. Durables | 1,113 | 993 | 12.0% |
| Renewables | 314 | 94 | 235.9% |
| Others | 169 | 153 | 11.0% |
| Lloyd Consumer | 1,460 | 1,262 | 15.7% |
| Total | 6,510 | 5,438 | 19.7% |
The company reported robust growth in the Cables segment and significant traction in Renewables. While exports in Switchgears were impacted by the West Asia situation, domestic demand remained stable.
Profitability and Margins
Profit margins were impacted by the elevated A&P spends during the quarter. The detailed segment results are provided below:| Segment | Q1 FY27 Results (Rs crores) | Q1 FY27 % of NR | Q1 FY26 Results (Rs crores) | Q1 FY26 % of NR |
|---|---|---|---|---|
| Switchgears | 127 | 20.8% | 148 | 23.4% |
| Cables | 255 | 10.4% | 243 | 12.6% |
| Lighting & Fixtures | 44 | 11.4% | 46 | 12.4% |
| Electrical Cons. Durables | 58 | 5.2% | 79 | 7.9% |
| Renewables | 8 | 2.7% | 11 | 12.0% |
| Others | 8 | 4.7% | 5 | 3.3% |
| Sub Total | 500 | 9.9% | 531 | 12.7% |
| Lloyd Consumer | (51) | (3.5)% | (20) | (1.6)% |
| Total | 449 | 6.9% | 512 | 9.4% |
Balance Sheet and Cash Flow
As of June 2026, the company reported total assets of Rs 14,815 crores, with inventories at Rs 5,016 crores, primarily driven by an increase in Cables. Total equity stood at Rs 9,446 crores.The net cash flow for the quarter was a deficit of Rs 854 crores. This includes an operating net cash flow of (Rs 186) crores and a net cash flow from investing activities of (Rs 301) crores. The company expects Capex to reach Rs 1,400 crores for the full year, focused on capacity additions in Cables and new R&D centers.
Key Financial Ratios
| Ratio | Q1 FY27 | Q1 FY26 |
|---|---|---|
| OPM % (EBITDA/NR) | 7.3% | 9.6% |
| ROE % | 18.1% | 17.6% |
| ROCE % | 23.5% | 23.7% |
| Current Ratio | 1.6 | 1.8 |
| Debtor Days | 11 | 16 |
| Inventory Days | 78 | 71 |
| Creditor Days | 49 | 44 |
| Net working capital days | 40 | 43 |
HAVELLS Stock Price Movement
As of 2:49 PM, Havells India Limited shares are slipping by 1.56% in live trading, currently at ₹1152.3. The stock is navigating a wider intraday range between ₹1141.2 and ₹1192.4 on a volume of 2.59 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.