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Havells India Limited — Q3 FY26
Havells India reported a healthy Q3 FY26 with revenue growing 14% YoY and EBITDA up 21% YoY, driven by strong volume growth in cables and wires (over 20% volume growth) and winter product demand.
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Havells India reported a healthy Q3 FY26 with revenue growing 14% YoY and EBITDA up 21% YoY, driven by strong volume growth in cables and wires (over 20% volume growth) and winter product demand. However, consumption trends remain modest, and the cooling products segment faced challenges, though channel inventory is normalizing. Management remains cautiously optimistic about gradual demand recovery but highlighted headwinds from commodity inflation, BEE norm changes, and e-waste costs. They are taking calibrated price hikes (5-10% for RAC) and focusing on operational efficiency. Key risks include potential volume moderation from channel destocking if copper prices correct sharply and margin pressure from raw material inflation. The company guided for continued CapEx of ~INR 1,000 crore next year, primarily for cables and a new R&D center.
हैवेल्स इंडिया ने वित्त वर्ष 2026 की तीसरी तिमाही में अच्छा प्रदर्शन किया। कंपनी की कमाई पिछले साल की तुलना में 14% बढ़ी और मुनाफा 21% बढ़ा। इसकी वजह तार और केबल की जोरदार बिक्री (20% से अधिक बढ़ोतरी) और सर्दियों के उत्पादों की मांग रही। हालांकि, बाजार में खपत अभी भी धीमी है और कूलिंग उत्पादों को चुनौतियों का सामना करना पड़ा। कंपनी धीरे-धीरे मांग सुधार की उम्मीद कर रही है, लेकिन कच्चे माल की बढ़ती कीमतों, सरकारी नियमों और ई-कचरा लागत से सावधान है। उन्होंने एसी की कीमतों में 5-10% बढ़ोतरी की है और लागत कम करने पर ध्यान दे रहे हैं। अगले साल वे केबल और नए रिसर्च सेंटर पर लगभग 1,000 करोड़ रुपये खर्च करेंगे।
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Copper price volatility and channel destocking
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Cables & Wires Volume Growth
>20%
+20% YoY
Healthy double-digit volume growth in cables and wires, driven by volume expansion and commodity price inflation.
Cable Capacity Utilization
90-100%
flat
Cable capacity utilization is high at 90-100%, while wire capacity is at 65-70%.
RAC Price Hike Required
5-10%
+5-10%
Industry-wide price hike of 5-10% needed to offset BEE changes, copper inflation, and INR depreciation, partly offset by GST reduction.
CapEx Guidance for FY27
INR 1,000 crore
flat
CapEx for next year expected around INR 1,000 crore, mainly for cables and wires and new R&D center.
What Changed vs Last Quarter
NEW
RAC price hike of 5-10% in Q4
Management indicated a 5-10% price increase for room ACs in the current quarter to offset cost pressures.
UPDATED
CapEx of ~INR 1,000 crore in FY27
Management guided for CapEx in the range of INR 1,000 crore next year, primarily for cables and wires and a new R&D center.
UPDATED
Channel inventory normalization by March 2026
Management expects channel inventory for cooling products to normalize by March 2026 as the summer season begins.
DROPPED
Lloyd contribution margin improvement from Q4
Lloyd's contribution margins, impacted by consumer schemes, are expected to start improving in Q3 with real effects in Q4.
DROPPED
Havells standalone EBITDA margin expansion of 150-200bps
Management reiterated confidence in expanding Havells standalone EBITDA margins by 150-200 basis points over time through productivity and premiumization.
NEW RISK
Copper price volatility and channel destocking
Sharp copper price movements could lead to channel destocking and volume moderation in wires and cables.
NEW RISK
Margin pressure from commodity inflation
Rising commodity costs may compress margins if price hikes are not fully passed through, especially in ECD and fans.
NEW RISK
Weak demand in cooling products
A weak summer season could lead to lower-than-expected sales of RACs and fans, impacting Lloyd's performance.
NEW RISK
US tariff impact on cable exports
US tariffs have reduced demand for cable exports, which were a growth driver last year.
RISK GONE
Elevated channel inventory may persist
High inventory levels for ACs, fans, and coolers could take longer to clear than expected, impacting primary sales and working capital.
RISK GONE
Competitive intensity from new entrants
Analyst raised concern about LG's aggressive pricing in mass-premium segments, which could pressure Lloyd's market share and margins.
RISK GONE
Under-absorption of manufacturing overheads
Lower production due to inventory correction led to under-absorption, impacting contribution margins in ECD and Lloyd.
RISK GONE
GST reduction not fully passed on due to BEE norm changes
Price increases from new BEE norms (Jan 2026) may offset GST benefits, potentially dampening consumer demand.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q3 FY25
Switchgear EBIT margins expected to recover to 23-24% from current 18% as plant relocation and mix issues resolve.
Mentioned in Q2 FY25, Q4 FY25
Continued volatility in copper and other raw material prices, driven by global uncertainties, poses an overhang on margins, especially in cables and wires.
Mentioned in Q1 FY26, Q2 FY26
High inventory levels for ACs, fans, and coolers could take longer to clear than expected, impacting primary sales and working capital.
Mentioned in Q2 FY26, Q4 FY25
Management reiterated confidence in expanding Havells standalone EBITDA margins by 150-200 basis points over time through productivity and premiumization.
Mentioned in Q1 FY25, Q3 FY25
Consumer demand showed weakness around Diwali and recovery is uncertain; if weakness persists, revenue growth may be impacted.
Fast read
Guidance and risk preview
Management guided for CapEx in the range of INR 1,000 crore next year, primarily for cables and wires and a new R&D center.
Sharp copper price movements could lead to channel destocking and volume moderation in wires and cables.
View Risks →