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Havells India Q4FY26- Muted quarter, summer recovery to be watch out

ICICIdirect Research 24 Apr 2026 DISCLAIMER

Havells India reported a muted Q4FY26, with revenue at ₹6,543 crore, up 2.5% YoY (up 20% QoQ), impacted by weakness in consumer-facing segments. EBITDA stood at ₹729 crore, with margins at 10.9%, down 69 bps YoY due to operating deleverage, though improving sequentially by 164 bps. Adjusted PAT came in at ₹472 crore (adjusting fair value gains on Goldi Solar), declining 8.7% YoY however up ~41% QoQ, aided by seasonally in March quarter.
Segment-wise, Cables division remained a key growth driver, delivering 14% YoY growth of which 6% was volume growth and balance being realisation increase. The growth was led by industrial demand, though household wire segment was subdued amid a high base and inventory normalization. Consumer durables (ECD – fans, coolers, etc.) and Llyods remained a drag, declining 2% YoY and 19% YoY, respectively, due to delayed seasonal demand and elevated channel inventory. Weather related disruptions further impacted demand recovery, although management highlighted signs of demand pickup in forthcoming days, esp. in South and West India.
Near term outlook appears constructive with the onset of peak summer and rising heatwave conditions likely to drive demand recovery in ACs, fans, and cooling products in Q1FY27. Additionally, the cables segment is expected to continue its strong momentum, supported by industrial demand and capacity expansion. That said, performance remains contingent on weather patterns and normalization of channel inventory, while global uncertainties could pose intermittent risks. Currently, the stock seems richly priced at TTM PE multiple of 45x. Overall, a demand-led recovery in summer categories will be critical for earnings acceleration in the coming quarters.

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