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Crompton reported healthy Q2FY27

ICICIdirect Research 19 Oct 2026 DISCLAIMER

News: Crompton reported healthy Q2FY27 with consolidated revenue growth of 18.2% YoY (+1.3% QoQ) to ₹2,263 crore, marking the third consecutive quarter of double-digit revenue and profit growth. EBITDA increased 24.1% YoY to ₹205 crore, with margins expanding 40 bps to 9%, while PBT excluding exceptional items rose 36.2% to ₹167 crore. ECD revenue grew 19.4% to ₹1,634 crore, led by 40% growth in BLDC fans, double-digit growth in conventional pumps and water heaters, and over 20% growth in small domestic appliances. Lighting revenue increased 14.3% to ₹298 crore, while Butterfly revenue grew 15.9% to ₹331 crore. Exports grew over 70% YoY, achieving the highest-ever quarterly sales. Commodity inflation continued to pressure gross margins, which declined to 29.8% from 31.6% a year ago. Approximately 80% of commodity cost increases have been passed on, while operating leverage is supporting margins.

View: Crompton’s broad-based growth, continued market-share gains and premiumization across BLDC fans, water heaters and kitchen appliances support its growth outlook. BLDC fans, which grew 40% YoY, remain a key growth driver given low penetration and increasing premiumisation. Export growth of over 70% provides an additional opportunity, while the potential revival of solar pump orders under PM-KUSUM 2.0 could support growth. The company’s FY29 targets remain on track (13-14% revenue CAGR, 11-12% exit EBITDA margin, ~15% smart & connected mix and ~14-15% contribution from new businesses), supported by sustained revenue momentum, pricing actions and cost efficiencies under the UNNATI program.

Impact: Positive

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