Havells India Limited delivered strong revenue growth in the second quarter of FY27, supported by robust performance in cables, switchgears and renewable energy products. However, profit growth was slower than revenue growth as raw-material costs and operating expenses remained elevated.

Consolidated revenue from operations increased 34.6% year-on-year to ₹6,431.99 crore, compared with ₹4,779.33 crore in Q2 FY26. The growth reflects strong demand across several product categories, although commodity-linked price increases also contributed to the expansion in reported sales.

Consolidated net profit increased 9.7% to ₹349.22 crore, compared with ₹318.28 crore in the corresponding quarter last year. This indicates that the company converted a smaller proportion of its additional revenue into bottom-line growth.

EBITDA increased approximately 30% year-on-year to around ₹577 crore, while the EBITDA margin was approximately 9%, compared with around 9.3% in Q2 FY26. The slight margin contraction reflects the impact of higher input costs and changes in the business mix.

Total expenses increased approximately 34.5% year-on-year to ₹5,991.98 crore. The cost of raw materials and components rose to ₹3,447.25 crore from ₹2,686.72 crore a year earlier. Employee expenses also increased, reflecting the scale of the business and its operating requirements.

Chairman and Managing Director Anil Rai Gupta said the company delivered strong business performance, with revenue growth of around 35% and EBITDA growth of around 30%, despite an inflationary environment. Management remained positive about the ongoing festive season while acknowledging continued macroeconomic uncertainties.

The cables business was the largest contributor to revenue growth. Segment revenue increased 47.9% year-on-year to ₹2,998.90 crore, compared with ₹2,028 crore approximately in Q2 FY26.

Cables benefited from commodity-linked price increases and a shift in product mix towards higher-sized cables. These factors helped lift reported revenue, although changes in copper and aluminium prices can also affect margins and working-capital requirements.

The company indicated that volatility in aluminium prices affected cables contribution margins during the first half of FY27. The contribution margin was approximately 15%, broadly in line with the company’s long-term average. Investors should therefore distinguish revenue growth driven by commodity prices from growth driven by volumes and product mix.

The switchgears business also delivered strong results. Revenue increased 31.3% year-on-year to ₹781.74 crore, while segment profit rose to ₹198.46 crore from ₹132.81 crore in the corresponding quarter last year.

Management attributed the improvement partly to stronger domestic demand and a recovery in exports following disruptions during the preceding June quarter. The segment’s performance suggests improving demand across electrical protection and control products.

Electrical Consumer Durables revenue increased 10.7% year-on-year to ₹1,072.11 crore. Segment profit reached ₹66.95 crore. Growth was reported across product categories, although profitability continued to depend on input costs, product mix and competitive pricing.

This segment includes products such as fans, water heaters and other electrical consumer durables. Continued demand for household electrical products and the replacement market can support growth, but competition and promotional spending remain important considerations.

The Lighting and Fixtures business recorded revenue of approximately ₹459.50 crore, up 7.3% year-on-year. Segment profit declined to ₹45.53 crore from ₹54.57 crore a year earlier. The results indicate that revenue growth has not yet translated into stronger segment profitability.

Havells established a separate Renewables reporting segment from April 1, 2026. The segment brings together solar, solar-pump and electric-vehicle charging businesses, allowing the company to track these activities more clearly.

Renewables revenue increased to ₹329.16 crore from ₹132.83 crore in the restated year-ago comparison. Segment profit rose to ₹27.25 crore from ₹5.01 crore. This represents strong growth, although the segment remains smaller than the company’s established cables and switchgears businesses.

The renewables opportunity is linked to growing investment in solar installations, agricultural solar pumps and electric-vehicle charging infrastructure. Future performance will depend on order execution, customer demand, project economics and the company’s ability to scale operations profitably.

Lloyd Consumer, Havells’ air-conditioning and consumer-durables business, reported revenue growth of approximately 28.5% to ₹619.41 crore. However, the segment continued to report a loss of approximately ₹105.51 crore, broadly similar to the year-ago loss of ₹105.97 crore.

The Lloyd business remains an important area to watch because its revenue growth has not yet produced a meaningful improvement in segment profitability. Raw-material inflation, product pricing, competitive intensity and capacity utilisation will influence the pace of any recovery.

For the first half of FY27, revenue from operations increased 26.5% year-on-year to ₹12,950.18 crore. However, consolidated profit for the period declined approximately 4% to ₹638.93 crore, compared with ₹665.81 crore in H1 FY26.

The half-year results underline a key challenge for Havells: strong revenue expansion has not yet translated into equivalent growth in net profit. Improving margins in the cables, lighting and Lloyd businesses will be important if earnings growth is to catch up with sales growth.

The company operates across several product categories, including cables, switchgears, lighting, fans, water heaters, air conditioners and other consumer appliances. Its portfolio provides exposure to residential construction, commercial infrastructure, industrial demand and household consumption.

Havells also manufactures a substantial proportion of its products in-house, supporting control over quality, production and product development. However, manufacturing scale does not eliminate exposure to commodity-price movements, supply-chain disruptions or shifts in customer demand.

Management remained positive about festive-season demand despite inflationary pressures and wider macroeconomic uncertainty. The near-term outlook will depend on consumer spending, construction activity, commodity prices, export demand and the company’s ability to manage its cost structure.

The principal growth opportunities include continued demand for electrical infrastructure, a favourable product mix in cables, improving switchgear demand and the expansion of renewable-energy products. A recovery in Lloyd profitability could also improve the company’s consolidated earnings profile.

The main risks are input-cost volatility, competitive pricing, slower-than-expected consumer demand and continued losses in the Lloyd business. Investors should monitor whether EBITDA margins stabilise, whether revenue growth becomes more volume-driven and whether the newer renewables business can maintain profitable expansion.

Overall, Havells India delivered a strong Q2 FY27 revenue performance, led by cables and switchgears, with renewables emerging as a growing business. However, the slower increase in consolidated profit and the decline in first-half profit show that margin recovery and cost discipline remain important for the company’s next phase of growth.

This video is for educational and informational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investors should review official company disclosures and consider their own financial objectives and risk tolerance before making investment decisions.

Havells India Ltd | Q2 FY27 Highlights

• Consolidated revenue from operations: ₹6,431.99 crore, up 34.6% YoY.
• Consolidated net profit: ₹349.22 crore, up 9.7% YoY.
• EBITDA: approximately ₹577 crore, up around 30% YoY.
• EBITDA margin: approximately 9%, compared with 9.3% last year.
• Total expenses: ₹5,991.98 crore, up approximately 34.5%.
• Raw-material and component costs: ₹3,447.25 crore, versus ₹2,686.72 crore last year.
• Cables revenue: ₹2,998.90 crore, up 47.9% YoY.
• Switchgears revenue: ₹781.74 crore, up 31.3% YoY.
• Electrical Consumer Durables revenue: ₹1,072.11 crore, up 10.7%.
• Renewables revenue: ₹329.16 crore; segment profit ₹27.25 crore.
• Lighting & Fixtures revenue: ₹459.50 crore, up 7.3%.
• Lloyd Consumer revenue: approximately ₹619.41 crore, up 28.5%; segment loss approximately ₹105.51 crore.
• H1 FY27 revenue: ₹12,950.18 crore, up 26.5%.
• H1 FY27 net profit: ₹638.93 crore, down approximately 4%.
• Management commentary: demand remained steady despite inflation, with a positive outlook for the festive season.
• Key growth drivers: cables, switchgears, renewable energy products and improving domestic demand.
• Key risks: raw-material inflation, margin pressure, competition and continuing Lloyd losses.
• Overall outlook: strong sales growth, but sustained earnings improvement depends on margin recovery and cost control.