Havells India share price today
Havells India witnessed a sharp decline in its share price on Thursday, April 23, after brokerages shared mixed outlook on the company post its March quarter (Q4FY26) results.
Havells India shares slipped 6.7 per cent on the BSE to a low of ₹1,260.25 per share. By comparison, the BSE Sensex was down 0.82 per cent at 11:05 AM.
Havells India Q4 results
Havells India reported Q4FY26 consolidated revenue of ₹6,688 crore, up 2 per cent year-on-year (Y-o-Y), aided by higher margins in the cable & wire (C&W) and lighting segments.
Segment-wise, C&W’s revenue grew ~14 per cent Y-o-Y (₹2,470 crore), the Switchgear revenue grew ~6 per cent Y-o-Y (₹740 crore), the Lighting revenue increased ~2 per cent Y-o-Y (₹450 crore), and the ECD revenue declined ~2 per cent Y-o-Y (₹980 crore).
Lloyd’s revenue declined ~19 per cent Y-o-Y to ₹1,520 crore.
Its Ebitda declined ~4 per cent Y-o-Y to ₹730 crore, with margin at 10.9 per cent.
Havells India’s consolidated net profit came at ₹734.24 crore, higher by 41 per cent Y-o-Y.
The management said momentum in industrial and infrastructure-linked segments remain strong, while consumer-facing categories remained relatively subdued due to persistent cost pressures.
Havells India, however, refrained from giving any growth guidance due to the evolving macro conditions.
It said the focus would remain on improving efficiency, brand building, innovation, and distribution expansion.
Why did Havells India share price fall today? Brokerages share outlook
Nomura | Buy | Target price cut to ₹1,620 (from ₹1,798)
Consumption trends were subdued for the summer portfolio, impacted by a relatively mild start to summer season. The management, however, remains optimistic about summer demand.
While the first half of April was slow, a pick-up is being seen now, led by Southern/Western regions and Havells expects normal inventory by end-April. The company also maintained its market share in most categories.
“Healthy demand in Cables led by infra, and ramp-up in cable capacity should continue to benefit growth in Cables/Wires, while Solar ramp-up should further support growth. A normal summer season and low base of FY26 should lead to a ~17 per cent revenue CAGR over FY26-28,” Nomura said.
The brokerage, however, has lowered Lloyd Ebit margins estimates to -1 per cent for FY27 and 2 per cent to FY28 (from 3 per cent and 4 per cent, respectively,) to factor in sharp commodity cost increase and elevated competitive intensity in the segment.
“We cut revenue estimates by ~4 per cent, and Ebitda margins by 60bps/10bp to 10.7 per cent/11.4 per cent, which leads to 11 per cent/6 per cent cuts in EPS estimates for FY27/FY28,” Nomura said.
CHECK Q4 Results Today
ICICI Securities | Buy | Target price cut to ₹1,615 (from ₹1,725)
Cables and Wires segment recorded revenue and Ebit growth of 14 per cent and 35.9 per cent Y-o-Y. While industrial demand accelerated, domestic wires decelerated due to channel inventory normalisation. Yet, volumes rose 6 per cent Y-o-Y. The brokerage believes cables remain a key structural growth driver, supported by infra-related capex and B2B demand.
On the other hand, ECD segment’s revenue and Ebit dipped 2.2 per cent and 19.6 per cent Y-o-Y, respectively, likely due to channel pre-stocking in Q3FY26 ahead of BEE norm changes and delayed onset of summer. Havells saw contraction in fans and air coolers.
ICICI Securities, however, expects a recovery in Q1FY27 with inventory normalisation and better seasonal demand.
“Though transitory issues dented FY26, we believe FY27 is likely to emerge stronger as favourable base and El Nino effect should drive steep growth in summer products. Besides, price hike of 5-20 per cent across products (over 10 per cent at portfolio level) could drive growth. Moreover, smaller/ unorganised players suffer more during high inflationary period and we also model Havells to gain market shares in FY27,” it said.
With potential mid-teens revenue growth and operating leverage, we expect margins to expand.
Motilal Oswal Financial Services | Neutral | Target price retained: ₹1,340
MOFSL noted that most of Havells India’s growth in the ‘other’ segment was driven by the solar business. The company, it said, is expanding its capacities in both the solar sector and industrial cables.
“We expect Havells India to report a revenue/Ebitda/profit CAGR of ~14 per cent/19 per cent/18 per cent over FY26-28E. We estimate a CAGR of ~15-20 per cent in C&W/ECD/Lloyd (each) and ~10 per cent in others (mainly driven by the solar business) and ~6-8 per cent in switchgear and lighting segments,” it said.
It expects operating profit margin to expand to 10.6 per cent in FY28 from 9.8 per cent in FY26.
“The company’s RoIC is expected to improve to ~24 per cent by FY28 from ~20 per cent in FY26. Its RoE is likely to be ~18 per cent in FY28 vs ~16 per cent in FY26,” MOFSL forecasted.
JM Financial | Downgraded to Add (from Buy) | Target price cut to ₹1,490 (from ₹1,515)
The brokerage has built in a “conservative” 100bps margin expansion over FY26-29, compared to the company’s expectation of 200bps, given increased investments in A&P, brand visibility initiatives, and R&D, and unlikelihood of C&W segment margin sustaining as there were gains from rising input costs in Q4FY26.
“We cut our FY27/28E estimates by ~3 per cent and value Havells at 45x Mar’28E EPS,” it said.
========= Disclaimer: Views and outlook shared belong to the respective brokerages and analysts and are not endorsed by Business Standard. Readers are advised to exercise discretion.