Havells India revenue jumps 34.57% to 6,432 crore rupees, shares rise after results
Key Facts
Havells India’s revenue from operations rose 34.57% year on year to 6,432 crore rupees in the September 2026 quarter, from 4,779.33 crore rupees in the year-earlier period, Business Standard reported. The results announcement was accompanied by a rise in the stock on October 23, with an intraday gain of 1.67% to 1,091 rupees. The shares were up 0.90% at 09:18, while the Nifty 50 rose 0.25%. The stock’s performance that day therefore differed from the draft that linked the results to a sharp fall to a new annual low. The company had recorded its 52-week low of 1,015.10 rupees on September 30, while the period’s high was 1,516.60 rupees on October 30, 2025, according to NSE data.
Revenue growth did not translate fully into a comparable improvement in margins. Total expenses came to 5,991.98 crore rupees, up 34.47% year on year, according to Business Standard, a pace close to revenue growth. The chairman and managing director said quarterly revenue grew about 35% and EBITDA rose about 30%, with demand remaining stable despite the inflationary environment. In a margin assessment, Nirmal Bang said gross margin contracted 426 basis points and EBITDA margin fell 26 basis points year on year, attributing the declines to an unfavorable product mix and cost pressures. Nuvama estimated gross contribution margin at 19.8%, down 240 basis points, and said EBIT margin fell 30 basis points to 8.6%.
The cables segment remained the main revenue driver, with sales rising 47.9% to 2,999 crore rupees in the September quarter. The company linked the segment’s growth to commodity-linked price increases and a shift in the mix toward larger cables, while management said demand for electrical and infrastructure-related products remained strong. But higher revenue did not eliminate the impact of volatile input costs; Reuters reported that fluctuations in aluminium prices pressured margins in the cables business. At the company level, the renewable energy segment recorded revenue of 329 crore rupees, more than double its level in the previous quarter. The results reflect a divergence between strong growth in some businesses and the cost and mix pressures reflected in margin estimates.
Management said price increases over the 12 months through October 2026 exceeded 30% in cables and wires and reached about 10-15% in some other categories. Volume growth in cables and wires also approached double digits in the second quarter of fiscal 2027, according to the earnings call transcript. Management expects further increases of between 5% and 7% in the third quarter of fiscal 2027, with the rate varying by product; Business Standard also reported this range, citing Nirmal Bang. Nuvama said it cut its fiscal 2026-2027 earnings-per-share estimate by 6% because of higher losses at Lloyd, while retaining its buy rating and a target price of 1,430 rupees for September 2027. The company still expects capital expenditure of about 14 billion rupees in fiscal 2026-2027, focused mainly on cables and wires and a research and development center.